Texas Instruments Incorporated Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Texas Instruments Incorporated (NASDAQ:TXN) just released its quarterly report and things are looking bullish. The company beat expectations with revenues of US$4.4b arriving 3.1% ahead of forecasts. Statutory earnings per share (EPS) were US$1.41, 5.8% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the latest results, the 37 analysts covering Texas Instruments are now predicting revenues of US$17.7b in 2025. If met, this would reflect an okay 5.9% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$5.59, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$17.7b and earnings per share (EPS) of US$5.54 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Texas Instruments

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.8% to US$206. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Texas Instruments at US$260 per share, while the most bearish prices it at US$125. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Texas Instruments' growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 17% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Texas Instruments is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Texas Instruments going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Texas Instruments (of which 1 makes us a bit uncomfortable!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.