Texas Instruments Stock Slumps on Soft Profit Forecast

Texas Instruments (TXN) shares dropped in extended trading Tuesday as the company issued a soft profit forecast.

The analog chipmaker said it expects third-quarter earnings of $1.36 and $1.60 per share, below the consensus of analysts surveyed by Visible Alpha at the midpoint. Texas Instrument’s revenue outlook of $4.45 billion to $4.8 billion came roughly in line with Street estimates.

Texas Instruments shares dropped over 8% in extended trading following the release. The stock was up close to 15% for 2025 through Tuesday’s close.

For the second quarter, Texas Instruments reported revenue of $4.45 billion, up 16% year-over-year and above the analyst consensus from Visible Alpha. Net income of $1.3 billion, or $1.41 per share, rose from $1.13 billion, or $1.22 per share, in the year-ago quarter, also topping estimates. 

The company’s semiconductors are used in a wide variety of electronic devices, including smartphones, vehicles, and satellites. Texas Instruments has said it counts Apple (AAPL), Ford (F), Nvidia (NVDA), SpaceX, and Medtronic (MDT) among those using its products. 

Last month, the company announced plans to invest over $60 billion in U.S. chip production, including on seven facilities in Texas and Utah.