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Texas Instruments Guides Q1 Above Estimates on AI and Industrial Strength

Analysts say consecutive growth prints will be needed to confirm a lasting recovery.

Overview

  • The company forecast first‑quarter revenue of $4.32 billion to $4.68 billion versus a $4.42 billion LSEG consensus, sending shares up roughly 7% in premarket trading after an after‑hours jump.
  • Management pointed to rising data center demand for its analog chips and a recovering industrial market; data center represented about 9% of 2025 sales and rose roughly 70% year over year in Q4.
  • The guidance implies sequential growth, which Deutsche Bank noted would be the first such guide‑up for TI in roughly 15 years.
  • Fourth‑quarter results were slightly below expectations at $4.42 billion in revenue and $1.27 in EPS, with earnings including a six‑cent reduction not in prior guidance.
  • Analysts welcomed the outlook but cautioned that tariff ambiguity and the drag from five years of elevated capital spending could cap a sustained rebound, with some seeking another growth quarter to gain confidence.