Texas Instruments Earnings Outlook: Will the Rally Continue After Earnings?
Texas Instruments Earnings Outlook: Will the Rally Continue After Earnings?
The company has beaten earnings-per-share estimates in four of the last four quarters, while missing revenue expectations just once
- Texas Instruments is set to report quarterly earnings on Thursday after the market close.
- Analysts see the company reporting earnings per share of $1.21 on $3.9 billion in revenue.
- Options markets expect a move of +/- 12 points on its earnings.
Texas Instruments to report fourth-quarter results on Jan. 23
Texas Instruments (TXN) will report fourth-quarter and year-end fiscal earnings after the market closes on Thursday with a conference call for investors to follow at 3:30 p.m. CST.
The company—famous for inventing handheld calculators—is a semiconductor company focused on analog and embedded solutions, such as chips used to process real-world signals. It’s also heavily involved in personal electronics, communications and the automotive industry.
Plus, it’s well-positioned to take advantage of shifts in the global economy that include artificial intelligence and the internet of things, as well as 5G technology.
One major tailwind for TXN remains the recently passed CHIPS Act. While the CHIPS Act aimed to invest in companies aligned to benefit artificial intelligence and secure chip manufacturing that benefits digital interfaces, it allocates funding for legacy semiconductor production—such as companies like Texas Instruments. Specifically, the CHIPS Act allotted at least $2 billion in funding for legacy semiconductors.
While the Trump administration will likely focus on investments aimed at piercing the moat of Taiwan’s dominance in chip manufacturing, the $2 billion in funding for companies like TXN will remain in place via the legislation. This funding will likely continue to benefit TXN over at least the next few years.
What do analysts expect?
Analysts, according to TradingView, anticipate TXN will report earnings per share (EPS) of $1.21 on $3.9 billion in revenue. That would put EPS below last year’s $1.49 per share, and revenue below last year’s $4.08 billion.
Last quarter, TXN reported EPS of $1.47 on $4.15 billion in revenue. Notably, TXN has beaten EPS estimates in four of the last four quarters, while missing revenue expectations just once.
Currently, 38 analysts offering a rating on TXN, with 10 holding a strong buy rating, two offering a buy rating, 22 with a hold rating, one with a sell rating and three with a strong sell rating. The consensus among these 38 ratings is neutral, according to TradingView.
Trading TXN earnings
From Jan. 1, TXN stock has risen nearly 5%, which compares to the S&P 500’s gain of 2.8% over the same time frame. That said, it appears TXN has some positive momentum in 2025 so far. A broader rally in stocks after President Trump’s inauguration could help to bolster TXN higher via broader bullish vibes in market sentiment.
Still, the stock is trading about 10% below its swing high of 220.39 from Nov. 8. It would need to rally nearly 13% to recapture that high.
The expected move for TXN’s earnings per the options market stands at +/- 12 points, or 6.1% of today’s 196.41 stock price. If the company delivers a positive earnings report, it could close the gap to the November high by about half and put it on track to retest those levels over the next few weeks.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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