Texas Instruments (TXN) exceeded expectations with their third-quarter 2025 results, reporting earnings per share of $1.48, a 1% increase year over year. Revenues of $4.74 billion also beat estimates by 2.1%, with the top line rising 14% year over year.

TXN operates under three segments: Analog, Embedded Processing, and Other. Analog revenues were $3.73 billion, Embedded Processing brought in $709 million, and Other totaled $304 million.

Operating details show a 10% increase in gross profit to $2.72 billion, with a gross margin of 57.4%. Operating profit rose 7% to $1.66 billion.

In Q3 2025, TXN generated $2.19 billion in operating cash flow, repurchased $119 million in stocks, and paid $1.24 billion in dividends. They also initiated guidance for Q4, expecting revenues between $4.22 billion and $4.58 billion.

Texas Instruments anticipates earnings per share between $1.13 and $1.39 for Q4 2025, with an effective tax rate of 13-14%. Currently ranked a Zacks Rank #3 (Hold), some better-ranked semiconductor stocks include Analog Devices (ADI), Lam Research (LRCX), and NVIDIA (NVDA).

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Read more at Nasdaq: Texas Instruments Q3 Earnings Beat Estimates, Revenues Rise Y/Y