Texas Instruments Stock Slides After Earnings, Guidance Disappoint Analysts

Earnings Miss and Weak Guidance Trigger Stock Decline

Texas Instruments reportedly fell short of earnings expectations and provided disappointing fourth-quarter guidance, according to recent financial reports. The chipmaker’s shares dropped approximately 6.5% on Wednesday, marking their worst performance since July, after the company announced earnings per share of $1.48 for the previous quarter, slightly below the $1.49 consensus estimate. Sources indicate the company’s fourth-quarter EPS guidance range of $1.13 to $1.39 also came in below analysts’ expectations of around $1.41 per share.

Earnings Miss and Weak Guidance Trigger Stock Decline
Analysts Divided on Texas Instruments Outlook
Bearish Perspectives: Concerns About Recovery Pace and Estimates
Bullish Views: Seeing Opportunity in Pullback
Mixed Assessment from JPM
Market Reaction and Forward Outlook

Analysts Divided on Texas Instruments Outlook

Wall Street firms presented contrasting views following the earnings release, with several analysts adjusting their price targets and maintaining different ratings on the stock. The mixed reactions suggest significant disagreement about the company‘s near-term prospects and recovery trajectory.

Bearish Perspectives: Concerns About Recovery Pace and Estimates

Bernstein reportedly maintained its underperform rating while cutting its price target to $160, suggesting a potential 12% decline from recent levels. Analysts at the firm suggested that “while recovery is clearly in progress, the pace does seem disappointing” and expressed concerns about management credibility. They indicated that Street estimates for next year appear “too high” and anticipate numbers will need to be revised downward over time.

Morgan Stanley similarly affirmed its underweight rating, reducing its price objective to $175 from $192. According to their analysis, they have “mixed views on the bull case” regarding Texas Instruments’ aggressive investment in U.S. capacity positioning them to manage tariff risk effectively. The report states they consider “a US centric solution to a global problem is not ideal.”

Bullish Views: Seeing Opportunity in Pullback

Despite the disappointing results, some analysts maintained positive outlooks. Citi reportedly reiterated its buy rating with a $235 price target, representing a 29% potential increase. According to their analysis, they view the stock pullback as a “buying opportunity” as the analog upturn should still materialize, driven by low inventory levels, depressed margins, and improving demand.

Evercore added Texas Instruments to its Tactical Outperform List, suggesting the post-earnings decline presents a buying opportunity. Analysts suggest the company has several potential catalysts, including what they characterize as conservative December quarter guidance, gross margin bottoming in early 2026, and free cash flow per share growth from $3 in 2025 to $11 in 2028.

Mixed Assessment from JPM

JPM lowered its price objective to $210 from $225 while noting some positive aspects in the report. According to their analysis, automotive revenues showed strength with 10% quarterly growth. However, they indicated disappointment with the company’s guidance for a 7% quarterly revenue decline, marking the second consecutive quarter of deceleration in year-over-year growth, which they note is “atypical at the early stages of a cyclical recovery.”

Market Reaction and Forward Outlook

The sharp stock decline reflects investor concern about the pace of recovery in the semiconductor sector. According to the analysis, Texas Instruments’ reduced utilization rates and lower gross margin guidance contributed to the negative market reaction. The divided analyst commentary suggests ongoing uncertainty about the timing and strength of the semiconductor cycle recovery, with the company’s performance likely to serve as a bellwether for broader industry trends.