Texas Instruments shares fall 8% after 2Q earnings report

Texas Instruments shares fall 8% after 2Q earnings report

Texas Instruments (TXN) shares dropped by 8% in extended trading on Tuesday following the company's second-quarter earnings report. The semiconductor giant reported earnings of $1.3 billion, or $1.41 per share, up 15% year-over-year from $1.13 billion, or $1.22 per share, in the same period last year. The earnings per share (EPS) figure included a 2-cent benefit that was not in the company's original guidance. Revenue for the quarter was $4.45 billion, up 16% year-over-year from $3.82 billion, beating analysts' estimates of $4.36 billion.

The company's shares fell despite reporting strong financial results. The drop in share price was primarily attributed to the company's third-quarter earnings forecast, which missed Wall Street estimates. Texas Instruments expects third-quarter earnings between $1.36 per share and $1.60 per share, with the midpoint of $1.48 falling below the $1.51 per share estimate from analysts. Revenue for the third quarter is expected to be between $4.45 billion and $4.8 billion, compared to analysts' average estimate of $4.59 billion.

The company's semiconductor products are used in a wide variety of electronic devices, including smartphones, vehicles, and satellites. Texas Instruments has said it counts Apple (AAPL), Ford (F), Nvidia (NVDA), SpaceX, and Medtronic (MDT) among those using its products. Last month, the company announced plans to invest over $60 billion in U.S. chip production, including on seven facilities in Texas and Utah.

References:
[1] https://www.investopedia.com/texas-instruments-earnings-q2-fy2025-11776588
[2] https://www.morningstar.com/news/dow-jones/2025072210067/texas-instruments-reports-higher-profit-sales-in-2q-with-growth-across-revenue-segments-update
[3] https://www.reuters.com/business/texas-instruments-third-quarter-profit-forecast-disappoints-shares-fall-2025-07-22/
[4] https://www.marketwatch.com/story/texas-instruments-reports-higher-profit-sales-in-2q-with-growth-across-revenue-segments-update-32fd5092
[5] https://www.cnbc.com/2025/07/22/texas-instruments-txn-stock-falls-on-weak-forecast-.html
[6] https://ca.investing.com/news/earnings/texas-instruments-beat-q2-earnings-soft-outlook-drags-shares-4113066