Texas Instruments Q3 Beats, Q4 Guidance Sends Shares Down

Texas Instruments reported Q3 revenue of $4.74 billion, up 14.2% year-over-year, and GAAP EPS of $1.48, broadly in line with expectations. For Q4 the company guided revenue of $4.22 billion to $4.58 billion (midpoint $4.4B) and EPS of roughly $1.13 to $1.39 (midpoint $1.26), missing analyst forecasts. The softer outlook prompted an after-hours sell-off, with shares falling about 7% in extended trading. Management said end markets showed growth but signaled margin compression as operating margin declined, even as free-cash-flow margin improved and inventory days fell. Investors also flagged concern that a broader chip recovery may be faltering and that trade and tariff tensions with China — historically about one-fifth of TI’s sales — could weigh on near-term demand.