Texas Instruments (NASDAQ:TXN) shares rose about 7% in U.S. premarket trading on Wednesday after the chipmaker issued first-quarter guidance that came in ahead of market expectations at the midpoint.
For the fourth quarter, TI reported revenue of $4.42 billion, narrowly below the consensus estimate of $4.45 billion but representing a 10% increase from a year earlier. Adjusted earnings per share were $1.27, missing forecasts by $0.02 and down from $1.30 in the same period last year. The company said results included a six-cent drag that had not been factored into its prior guidance. Cash flow from operations totaled $7.2 billion over the trailing 12 months.
TI’s core analog business, its largest segment, generated revenue of $3.62 billion, up 14% year on year. Revenue from embedded processing rose 8% to $662 million.
“Overall a good quarter, consistent with our view that we continue to be in an analog recovery,” analysts at Morgan Stanley said in a note.
Texas Instruments supplies chips across a wide range of end markets, with a particular focus on automotive and industrial customers. In October, the company said the recovery from an industry-wide supply glut was unfolding more slowly than in past cycles.
Chief executive Haviv Ilan said at the time that the gradual pace of improvement was likely linked to ongoing trade uncertainty, even after U.S. President Donald Trump stepped back from harsher tariff measures in favour of a series of trade agreements. Even so, visibility across the semiconductor sector remains limited as companies continue to assess their exposure to potential levies.
Looking ahead, TI forecast first-quarter revenue of between $4.32 billion and $4.68 billion, with the midpoint of $4.5 billion topping the Wall Street consensus of $4.42 billion. The company also guided for earnings per share in the range of $1.22 to $1.48, with the $1.35 midpoint above analysts’ expectations of $1.28.
For the full year 2025, Texas Instruments reported revenue of $17.68 billion, up 13% from $15.64 billion in 2024. Free cash flow nearly doubled year on year to $2.94 billion from $1.5 billion.
Over the past 12 months, TI returned $6.48 billion to shareholders through dividends and share buybacks, marking a 13% increase compared with the previous year.