Texas Instruments delivered year-over-year revenue growth in Q4, driven primarily by a rebound in industrial and continued momentum in data center applications. Management highlighted that industrial revenue rose nearly 20% over the prior year, while the data center segment posted around 70% growth, underscoring a shift toward higher-value markets. CEO Haviv Ilan explained, “The overall semiconductor market recovery is continuing, and we are well-positioned with inventory and capacity to meet immediate customer demand.” The company also noted that its expanded capacity and inventory levels enabled it to respond quickly to real-time customer needs.
Is now the time to buy TXN? Find out in our full research report (it’s free for active Edge members).
Texas Instruments (TXN) Q4 CY2025 Highlights:
- Revenue: $4.42 billion vs analyst estimates of $4.46 billion (10.4% year-on-year growth, 0.8% miss)
- EPS (GAAP): $1.27 vs analyst expectations of $1.31 (2.9% miss)
- Adjusted EBITDA: $2.03 billion vs analyst estimates of $2.05 billion (45.9% margin, 1.1% miss)
- Revenue Guidance for Q1 CY2026 is $4.5 billion at the midpoint, above analyst estimates of $4.42 billion
- EPS (GAAP) guidance for Q1 CY2026 is $1.35 at the midpoint, beating analyst estimates by 6.3%
- Operating Margin: 33.3%, down from 34.4% in the same quarter last year
- Inventory Days Outstanding: 224, up from 218 in the previous quarter
- Market Capitalization: $204.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Texas Instruments’s Q4 Earnings Call
- Ross Seymore (Deutsche Bank) asked about the drivers of above-seasonal Q1 guidance. CEO Haviv Ilan attributed this to strengthening orders, especially in industrial and data center, rather than pricing actions.
- Jim Schneider (Goldman Sachs) inquired about inventory management strategy. Ilan explained their satisfaction with current inventory levels, emphasizing its role in meeting just-in-time customer demand and supporting long-term growth.
- Harlan L. Sur (JPMorgan) questioned recovery sustainability in industrial and the status of manufacturing investments. Ilan noted order momentum but remained cautious about sustainability, while CFO Rafael R. Lizardi updated on ongoing capacity expansion and tax incentives.
- Vivek Arya (Bank of America Securities) asked if Q1 growth was the result of pricing. Ilan clarified that overall company pricing was down low single digits, and that growth was mainly order-driven.
- Thomas O'Malley (Barclays) requested an automotive update. Ilan described a single-digit drop from peak levels but highlighted ongoing secular content gains and resilience, especially in China.
Catalysts in Upcoming Quarters
In the upcoming quarters, our team will focus on (1) tracking sustained recovery and margin improvements in the industrial and automotive markets, (2) monitoring the pace and durability of data center-driven revenue growth as infrastructure investments continue, and (3) evaluating the impact of the company’s completed manufacturing expansions on capacity utilization and free cash flow. Progress on inventory reduction and the ability to ramp production in response to market shifts will also be important indicators of execution.
Texas Instruments currently trades at $224.88, up from $196.63 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.