Texas Instruments (TXN) stock crashes 11% on weaker than expected Q3 2025 forecast

Texas Instruments (TXN) unveiled their Q2 2025 financial results, complete with a projected outlook for Q3 2025. However, this projection failed to meet analyst predictions, leading to a 11% decline in the company’s stock value.

On July 22, 2025, Texas Instruments (TXN) unveiled their Q2 2025 financial results, surpassing the predicted revenue of $4.36 billion by reaching $4.45 billion. The company’s earnings-per-share also outdid expectations at $1.41 compared to the anticipated $1.35. However, Texas Instruments’ own forecast for Q3 2025 raised concerns among analysts and investors, leading to a 11% drop in TXN stock value.

Texas Instruments projected its Q3 2025 earnings per share would range from $1.36 to $1.60, falling slightly short of analyst predictions at $1.50 per share. The company also predicted its revenue for the same period would be between $4.45 billion and $4.8 billion, again underestimating the analysts’ projected figure of $4.59 billion. The lower end of these expectations has resulted in a 11% drop in the company’s stock price.

Haviv Ilan, President and CEO of Texas Instruments, emphasized once more the robustness of our business model, the excellence of our product offerings, and the advantage brought by producing 300 million units, as we reported a cash flow from operations of $6.4 billion over the past year. Additionally, for the same timeframe, our free cash flow amounted to $1.8 billion.

In Q3 of 2024, Texas Instruments surpassed both revenue and earnings per share (EPS) projections, despite the industry being in a distinct state with lower tariff levels at that time. The impact of these tariffs on the company during the upcoming quarter is yet to be determined. Keep an eye on our TXN page for updates on Texas Instruments’ performance each quarter.

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2025-07-23 04:27