Texas Instruments stock drops after Q3 earnings miss and cautious outlook - what investors need to know
Texas Instruments stock drops after Q3 earnings miss and cautious outlook - what investors need to know
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Texas Instruments stock drops after Q3 earnings miss and cautious outlook - what investors need to know

Haviv Ilan 🕒︎ 2025-10-21

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Texas Instruments stock drops after Q3 earnings miss and cautious outlook - what investors need to know

ReutersTXN stock TXN stock: Texas Instruments stock dropped more than 8% in after-hours trading on Tuesday following the release of its third-quarter results and a cautious outlook for the next quarter, as per a report. TXN Stock Falls TodayThe semiconductor giant, headquartered in Dallas, reported earnings of $1.48 per share on $4.74 billion in revenue, marking a 14% increase from a year ago, as per a Gurufocus report.While the company, led by Haviv Ilan, beat expectations in its analog business, generating $3.73 billion in revenue, up 16% year over year, its embedded processing segment underperformed at $709 million, as reported by Gurufocus.As per the report, Texas Instruments projected earnings between $1.13 and $1.39 per share and revenue in the range of $4.22 billion to $4.58 billion, both below Wall Street estimates. The forecast contributed to investor caution and the after-hours drop in the stock, as per the Gurufocus report.ALSO READ: Intuitive Surgical stock jumps after beating Q3 earnings expectations & raising outlook for FY25Live EventsTexas Instruments Strong Profit Margins Despite Mixed ResultsTexas Instruments derives more than 95% of its revenue from semiconductors, with the remainder coming from its calculators, as reported by Gurufocus. As the world’s leading maker of analog chips, the company plays a crucial role in processing real-world signals such as sound and power, as per the report. The firm also maintains a strong presence in processors and microcontrollers used across a wide range of electronics, as per the Gurufocus report. With a market capitalization of $164.41 billion, the company remains a major player in the technology sector, as reported by Gurufocus.Despite mixed results, Texas Instruments shows strong profitability. Over the trailing twelve months, the company posted $16.68 billion in revenue, with a net margin of 30.23% and an operating margin of 34.89%, as per the Gurufocus report. Its balance sheet remains solid, with a current ratio of 5.81 and a quick ratio of 3.88, reflecting ample liquidity, as per the report.ALSO READ: Harvard professor issues warning about 3I/ATLAS that may affect your vacation plans & claims NASA is keeping secretsLiquidity and Debt Analysis: What TXN Investors Should KnowHowever, some cautionary signals emerged. The company has issued $6.8 billion in debt over the past three years, and its dividend payout ratio sits high at 0.99, as reported by Gurufocus. Insider activity also indicates some selling, with 1,500 shares sold in the last three months, as per the report.TXN Valuation Metrics and Historical ComparisonsTexas Instruments trades at a P/E ratio of 33.12, well above its historical median of 22.63, and a P/S ratio of 9.94 versus a median of 8.02, as reported by Gurufocus. Analysts remain cautiously optimistic, setting a target price of $196.58 with an overall recommendation score of 2.7, as per the report. Technical indicators show neutral market sentiment, with an RSI of 48.34 and moving averages pointing to potential resistance levels, as per the Gurufocus report.Institutional investors hold a significant stake in the company at 87.01%, while insider ownership remains low at 0.51%, reflecting strong institutional confidence despite recent volatility, as per the report.FAQsWhy did Texas Instruments stock drop after Q3 earnings?Shares fell over 8% after the company gave a cautious outlook and embedded processing revenue came in below expectations.How did TXN perform in Q3 2025?The company reported $4.74 billion in revenue and $1.48 earnings per share, marking a 14% increase in revenue year-over-year.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onTXN stock todayTexas Instruments stockTXN stockTXN stock price todayTXN Q3 earnings reportTXN stock after hoursUS stock market after trading hours todayTXN stock price dropTexas Instruments forecast Q4Texas Instruments latest news today (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onTXN stock todayTexas Instruments stockTXN stockTXN stock price todayTXN Q3 earnings reportTXN stock after hoursUS stock market after trading hours todayTXN stock price dropTexas Instruments forecast Q4Texas Instruments latest news today(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123

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