Texas Instruments Q3 2025 Earnings
from The Quarterly Call Hosted by The Quarterly Call
The Texas Instruments Third Quarter 2025 Earnings Call highlighted continuing yet moderate recovery in the overall semiconductor market, with Q3 revenue coming in at $4.7 billion, representing a 14% year-over-year increase. Analog revenue showed strong growth, up 16% year-over-year, while the key Industrial market increased about 25% year-on-year but grew at a low-single-digit pace sequentially following a very strong Q2, and the Automotive market increased around 10% sequentially. The company announced net income of $1.4 billion, which included an $0.08 per share charge related to restructuring efforts, primarily involving the planned closures of its last two 150-millimeter fabs. Management noted that customer inventory depletion appears to be complete, and the company is adjusting manufacturing utilization by lowering wafer starts in the fourth quarter to keep inventory levels flat or slightly down, which will impact Q4 gross margins. For the fourth quarter, TI guided revenue in the range of $4.22 billion to $4.58 billion, suggesting a roughly seasonal sequential decline. Strategically, the company plans to officially break out the Data Center market as a separate reporting segment in Q1 2026, noting that Data Center is currently its fastest-growing market, running at an estimated $1.2 billion run rate in 2025 and growing above 50% year-to-date. Management reiterated that their long-term focus remains on growing free cash flow per share.
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