Texas Instruments CFO Cuts Recovery Speed Optimism, Shares Decline

Texas Instruments CFO has reportedly tempered optimism on recovery speed, leading to a decline in shares. The company specializes in designing, manufacturing, and marketing semiconductors. Net sales are distributed across various product families and regions, with the United States, Europe, China, Japan, and Asia being the major contributors.

Texas Instruments (NASDAQ: TXN), a leading semiconductor company, presented at Citi’s 2025 Global Technology, Media and Telecommunications Conference on September 4, 2025. The company reported a strategic focus on manufacturing and technology investments amid a gradual recovery in four of its five end markets. While optimistic about long-term growth, Texas Instruments acknowledged challenges, particularly in the automotive sector, and emphasized its commitment to shareholder returns.

The CFO, Rafael Lazardi, noted that the recovery is underway but not as swift as anticipated. Four out of five end markets are showing signs of recovery, except for the automotive sector. The company projects approximately $5 billion in capital expenditure for 2025, consistent with previous years. Additionally, Texas Instruments anticipates $6 billion to $9 billion in investment tax credits (ITC) from the Chips Act, with $1.6 billion in direct grants.

The company aims to maintain short lead times by leveraging inventory and internal manufacturing. Rafael Lazardi highlighted that Texas Instruments is regaining market share lost during supply constraints in 2021-2022. The company remains committed to returning all free cash flow through dividends and buybacks.

The presentation also touched on the company’s future outlook, with four revenue scenarios projected for 2026: $20 billion, $22 billion, $24 billion, and $26 billion. Capital expenditure for 2026 is projected between $2 billion and $5 billion, depending on revenue.

However, the company’s shares declined following the presentation, likely due to the tempered optimism on the recovery speed. Investors may have been expecting a more rapid recovery, which was not reflected in the company’s outlook.

References:

[1] https://www.investing.com/news/transcripts/texas-instruments-at-citis-conference-manufacturing-focus-amid-recovery-93CH-4224529