Demand
← Earnings Calls
01
02
03
04 05 06
Tone
Capex
TXN
FY2025 Q3
In line
Texas Instruments Incorporated earnings call
Buzzberg read
Moderate recovery expected; customers in wait-and-see mode
TI reported Q3 revenue of $4.7B (+14% YoY) and EPS of $1.48. The recovery continues at a slower pace; Q4 guidance is seasonally down on lower loadings and higher depreciation. Data center is a fast-growing segment, reaching ~$1.2B run rate. Management emphasized free cash flow growth and long-term positioning. Q3 revenue $4.7B, EPS $1.48 (includes $0.10 restructuring charge).
Buzzberg read Moderate recovery expected; customers in wait-and-see mode TI reported Q3 revenue of $4.7B (+14% YoY) and EPS of $1.48. The recovery continues at a slower pace; Q4 guidance is seasonally down on lower loadings and higher depreciation. Data center is a fast-growing segment, reaching ~$1.2B run rate. Management emphasized free cash flow growth and long-term positioning. Q3 revenue $4.7B, EPS $1.48 (includes $0.10 restructuring charge). Read full analysisCollapse analysis
TI reported Q3 revenue of $4.7B (+14% YoY) and EPS of $1.48. The recovery continues at a slower pace; Q4 guidance is seasonally down on lower loadings and higher depreciation. Data center is a fast-growing segment, reaching ~$1.2B run rate. Management emphasized free cash flow growth and long-term positioning. Q3 revenue $4.7B, EPS $1.48 (includes $0.10 restructuring charge).
- Q4 guidance: revenue $4.22-4.58B, EPS $1.13-1.39; loadings cut to maintain inventory.
- Industrial up 25% YoY, auto up high-single-digits, data center growing >50% YoY.
- Inventory at $4.8B (215 days), flat QoQ; management comfortable with level.
Revenue$4.742BReported
EPS$1.48Reported
Gross margin57.42%Reported
Operating margin35.07%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Data center growth strong; to be broken out as market
Supply
Lower wafer starts to keep inventory flat to down
Show 3 more callouts
Supply
Inventory target reached; high service level achieved
Capital Allocation
Free cash flow per share growth is key focus
Demand
China returned to normal; no repeat of pull-forward
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $4.742B | Reported |
| EPS | $1.48 | Reported |
| Gross margin | 57.42% | Reported |
| Operating margin | 35.07% | Reported |
| Free cash flow | $0.993B | Reported |
| Capex | $1.197B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2025 Q4 | $1.13–$1.39 | $1.26 | Guided |
| Revenue | FY2025 Q4 | $4.22B–$4.58B | $4.4B | Guided |
AI, capex & demand read
Management read
Measured
Management described a moderate, slower-than-typical recovery with customer hesitancy, but expressed confidence in their inventory and capacity positioning.
Investment and capacity
Management reaffirmed its 2025-2026 capex framework of $20-26 billion, but noted the probability of being lower is more likely given the moderate recovery. They continue to invest in new fabs in Sherman, Utah, and Lehigh, while winding down 150mm fabs, and expect to be at the lower end of capex if the recovery stays moderate.
Methodology & coverage
Management-only analysis. All 0 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.