TXN Gears Up to Post Q2 Earnings: What's in Store for the Stock?

Texas Instruments TXN is scheduled to report second-quarter 2025 results on July 22, after market close.

Texas Instruments expects earnings per share between $1.21 and $1.47. The Zacks Consensus Estimate for second-quarter earnings is pinned at $1.32 per share, which indicates a year-over-year increase of 8.2%.

The company anticipates revenues between $4.17 billion and $4.53 billion for the first quarter. The Zacks Consensus Estimate is pegged at $4.31 billion, suggesting growth of 12.8%  from the year-ago period's reported figure.

TXN’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Texas Instruments Incorporated Price and EPS Surprise

Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote

Let’s see how things are shaping up for the upcoming quarterly results.

Factors to Consider for Texas Instruments

Texas Instruments’ second-quarter performance is likely to be affected by the U.S.-China trade war and tariff hikes, as TXN is a major player in China, accounting for more than 20% of its annual revenues in 2024.

As Texas Instruments is increasing its Lehi factory in Utah, it will incur costs. TXN's rising manufacturing costs due to planned capacity expansions and decreased factory loadings are likely to have been a major headwind for the company’s business in the to-be-reported quarter.

Texas Instruments’ results are likely to be positively impacted by the continued recovery in its industrial and automotive end markets, which have consistently contributed approximately 70% of its annual revenues.

It is anticipated that a recovery in the demand environment, as customers focus on rebuilding inventory, is likely to have a positive effect on the Analog and Embedded Processing segments' performance during the second quarter. Our model estimates for Analog and Embedded Processing division’s second-quarter revenues are pegged at $3.34 billion and $662.5 million, respectively.

What Our Proven Model Says for TXN’s Q2 Earnings

Our proven model does not conclusively predict an earnings beat for Texas Instruments this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

TXN has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Infosys INFY has an Earnings ESP of +1.06% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Infosys is set to report first-quarter fiscal 2026 results on July 23. The Zacks Consensus Estimate for INFY’s first-quarter fiscal 2025 earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a rise of 5.56% from the year-ago quarter’s reported figure. Infosys shares have plunged 15.6% year to date.

Alphabet GOOGL has an Earnings ESP of +0.78% and a Zacks Rank #2 at present.

Alphabet is slated to report second-quarter 2025 results on July 23. The Zacks Consensus Estimate for GOOGL’s second-quarter 2025 earningsServiceNow  is pegged at $2.13 per share, up by a penny over the past 30 days, indicating a rise of 12.7% from the year-ago quarter’s reported figure. Alphabet shares have declined 3.4% year to date.

ServiceNow NOW has an Earnings ESP of +2.11% and carries a Zacks Rank #3 at present.

It is set to report second-quarter 2025 results on July 23. The Zacks Consensus Estimate for NOW’s second-quarter earnings is pegged at $3.54 per share, up by a penny over the past 30 days, indicating a rise of 13.1% from the year-ago quarter’s reported figure. NOW shares have lost 8.9% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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