The stock of Texas Instruments (TXN) is down 10% after the semiconductor maker issued weak guidance for this year’s third quarter.
For the second quarter of 2025, Texas Instruments reported strong results, including earnings per share of $1.41 U.S. That beat Wall Street’s consensus estimate of $1.36 U.S.
Revenue in the April through June period came in at $4.45 billion U.S., which was ahead of analysts’ expectations of $4.36 billion U.S.
Unfortunately, Texas Instruments forecast earnings per share for the current third quarter of $1.36 U.S. to $1.60 U.S.
The midpoint of that range is below the Wall Street consensus of $1.51 U.S., sending its share price lower.
Management blamed a difficult automotive market for its weak outlook, saying the motor vehicle industry is struggling with 25% import tariffs.
Much of Texas Instruments business is making microchips and semiconductors for vehicles.
However, the company sells the basic microchips that go into products in nearly every sector of the economy, from vehicles to consumer electronics.
Because of the broad nature of the company’s more than 100,000 customers, investors consider Texas Instruments a bellwether for the technology industry and the U.S. economy.
Texas Instruments is one of the first semiconductor companies to report its Q2 results this earnings season.
Before today (July 23), TXN stock had risen 15% in 2025 and was trading at $214.92 U.S. per share.
