TXN Stock Falls Today
The 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.
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Texas Instruments Strong Profit Margins Despite Mixed Results
Texas 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.
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Liquidity and Debt Analysis: What TXN Investors Should Know
However, 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 Comparisons
Texas 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.
FAQs
Why 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.
The post TXN stock today: Texas Instruments stock drops after Q3 earnings miss and cautious outlook – what investors need to know appeared first on Veritas News.
