📡 Texas Instruments and the return to growth!
After a long streak of nine quarters of declining sales and earnings , Texas Instruments $TXN is finally bouncing back from the bottom. Q1 2025 results brought positive sentiment. Shares jumped by more than 6 %.
📈 Q1 2025 results: return to growth trajectory
Revenues: USD 4.07 billion (+11% y/y), above expectations of USD 3.91 billion.
Earnings per share (EPS): $1.28 (vs. consensus of $1.06)
Gross profit: USD 2.3 billion (57% margin)
Net profit: USD 1.2 billion
After years of stagnation and decline TXN returns to growth across most sectors. The only exception is the personal electronics segment, where the traditional seasonal downturn was evident.
🔮 Q2 Outlook
Revenue estimate: USD 4.17-4.53 billion (consensus USD 4.12 billion)
Earnings per share (EPS): USD 1.21-1.47 (Expectation: USD 1.20)
These numbers confirm that management believes in continued growth across segments and that the issues that weighed on the company in the year 2024are no longer so great.
🏭 Segment performance
Analog Manufacturing: +13% y/y very key growth driver
Embedded processing: steady growth
Other segments: +23% q/q
Sales from the industrial market, which was previously hit hard, finally turned positive.
💰 Financial stability and return to shareholders
Cash flow from operations: USD 6.2 billion
Free cash flow: USD 1.7 billion
Dividends and buybacks: USD 6.4 billion
Cash and short-term investments: USD 5 billion
The results clearly show that the company remains solidly managed even in a difficult environment.
⚠️ But what to watch out for!
Gross margins down 90 bps sequentially
Operating cost growth: +6% y/y is due to higher investment in production
Personal electronics market: decline in the lower tens of percentages
Tariffs and export measures may also affect this company
Texas Instruments thus brings good news after a long time. Sales growth, beating expectations, a positive outlook, a strong balance sheet and a generous attitude towards shareholders. The company shows that even after a bad period, it can return to a growth trajectory thanks to its long-term vision.
Of course, only the next quarterly results will tell if this is a trend reversal or just a short-term respite.
What do you think of Texas Instruments?