Texas Instruments (NASDAQ:TXN) Releases Earnings Results

Key Points

• Texas Instruments reported earnings of $1.48 per share, aligning with analysts' expectations, and announced updated guidance for Q4 2025 EPS between $1.130 and $1.390.
• The company increased its quarterly dividend to $1.42, marking an annualized dividend of $5.68 and a yield of 3.1%, effective for shareholders of record on October 31st.
• Texas Instruments has received varying ratings from analysts, with a consensus rating of "Hold" and a price target averaging $209.47, while several firms issued "Buy" ratings with targets exceeding $240.

Texas Instruments (NASDAQ:TXN - Get Free Report) issued its earnings results on Tuesday. The semiconductor company reported $1.48 earnings per share for the quarter, hitting the consensus estimate of $1.48, Zacks reports. Texas Instruments had a return on equity of 30.10% and a net margin of 30.23%. Texas Instruments updated its Q4 2025 guidance to 1.130-1.390 EPS.

Texas Instruments Price Performance

TXN traded up $1.25 during trading on Tuesday, reaching $180.84. The stock had a trading volume of 10,052,190 shares, compared to its average volume of 7,230,632. The stock has a 50 day moving average of $187.17 and a two-hundred day moving average of $185.96. The company has a quick ratio of 3.88, a current ratio of 5.81 and a debt-to-equity ratio of 0.86. The firm has a market capitalization of $164.41 billion, a price-to-earnings ratio of 33.12, a price-to-earnings-growth ratio of 2.99 and a beta of 1.01. Texas Instruments has a 1-year low of $139.95 and a 1-year high of $221.69.

Texas Instruments Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 12th. Shareholders of record on Friday, October 31st will be given a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a yield of 3.1%. This is a positive change from Texas Instruments's previous quarterly dividend of $1.36. The ex-dividend date is Friday, October 31st. Texas Instruments's payout ratio is currently 99.63%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on TXN. KeyCorp lifted their price objective on shares of Texas Instruments from $215.00 to $240.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. The Goldman Sachs Group started coverage on shares of Texas Instruments in a report on Thursday, July 10th. They issued a "buy" rating and a $255.00 price target for the company. Rosenblatt Securities reaffirmed a "buy" rating and set a $245.00 price objective on shares of Texas Instruments in a research report on Wednesday, July 23rd. Benchmark reissued a "buy" rating and issued a $220.00 target price on shares of Texas Instruments in a report on Monday, September 8th. Finally, Morgan Stanley decreased their target price on Texas Instruments from $197.00 to $192.00 and set an "underweight" rating for the company in a research note on Friday, September 12th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twelve have given a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, Texas Instruments presently has a consensus rating of "Hold" and a consensus price target of $209.47.

Insiders Place Their Bets

In other news, VP Ahmad Bahai sold 1,500 shares of Texas Instruments stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $205.35, for a total value of $308,025.00. Following the transaction, the vice president owned 38,883 shares of the company's stock, valued at $7,984,624.05. The trade was a 3.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 0.57% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Texas Instruments

Large investors have recently modified their holdings of the stock. Strategic Wealth Investment Group LLC acquired a new stake in Texas Instruments during the 2nd quarter worth about $25,000. Osterweis Capital Management Inc. raised its stake in Texas Instruments by 1,810.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 191 shares of the semiconductor company's stock valued at $40,000 after purchasing an additional 181 shares during the period. WFA of San Diego LLC acquired a new stake in Texas Instruments during the 2nd quarter valued at $83,000. Scott Marsh Financial LLC purchased a new stake in shares of Texas Instruments in the second quarter valued at $318,000. Finally, Talisman Wealth Advisors LLC boosted its position in shares of Texas Instruments by 7.7% in the second quarter. Talisman Wealth Advisors LLC now owns 1,871 shares of the semiconductor company's stock worth $388,000 after buying an additional 133 shares during the period. 84.99% of the stock is owned by institutional investors.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.

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