Texas Instruments Stock Falls Following Lower-Than-Expected Q3 Results and Weak Q4 Forecasts

Q3 sales plunge 13.53% from last year, with Q4 revenue projected below estimates amid declining demand across key markets including industrial and automotive sectors.

Texas Instruments reported Q3 sales of $4.53 billion, a 13.53% decrease compared to $5.24 billion during the same period last year, missing the analyst consensus estimate of $4.57 billion.
Despite the lower sales, the company's Q3 earnings per share of $1.85 beat the analyst consensus estimate of $1.81, albeit a 25.1% decrease from earnings of $2.47 per share a year ago.
The company's Q4 revenue guidance is expected to range between $3.93 billion and $4.27 billion, falling short of the analyst estimate of $4.49 billion, with earnings per share estimated to be between $1.35 and $1.57.
Demand for Texas Instruments' products has been hit hard, especially in key markets like the industrial sector and the automotive industry, amid slowing economic growth and heightened borrowing costs.
China, a critical market for the company with about 25% of its revenue, continues to experience weak demand trends across various sectors, impacting the company's performance.