Texas Instruments said the chip market was recovering slowly and had a poor financial forecast, falling 8% after the bell.

(Source: Texas Instruments)

TI CEO Haviv Ilan said on Tuesday that the revenue forecast for the fourth quarter of 2025 will be between US$4.22-4.58 billion (the median is US$4.40 billion), and the earnings per share is expected to be between US$1.13-1.39 (the median is US$1.26).

Analysts expect TI’s revenue and earnings per share in the fourth quarter of 2025 to be US$4.51 billion and US$1.41 respectively.

In the third quarter, TI's analog chip revenue increased by 16% year-on-year to US$3.729 billion, and its operating income increased by 13% year-on-year to US$1.486 billion. Its embedded processing chip revenue increased by 9% year-on-year to US$709 million, while its operating income decreased by 1% year-on-year to US$108 million.

According to the prepared speech transcript of the earnings call released on Tuesday, Ilan pointed out that the overall semiconductor market continues to recover, but the pace is slower than previous waves of upward cycles. This may be related to the overall overall economic dynamics and general uncertainty. Nonetheless, TI's customer inventories remain low and the destocking phase appears to be over.

Ilan mentioned three months ago that tariffs and geopolitics are impacting and reshaping the global supply chain.

Ilan also announced TI's third-quarter terminal market revenue trends on Tuesday: the industrial market has an annual growth rate of about 25%, and the quarterly growth rate is in the low-single digits (low-single digits); the automotive market's annual growth rate is in the upper single digits (upper-single digits), and the quarterly growth rate is about 10%; the personal electronics market's annual growth rate is in the early single digits (low-single digits), and the quarterly growth rate is in the upper-single digits (upper-single) digits), enterprise systems (including data centers and enterprise computing) have an annual growth rate of approximately 35% and a quarterly growth rate of approximately 20%, and communication equipment has an annual growth rate of approximately 45% and a quarterly growth rate of approximately 10%.

Texas Instruments rose 0.70% to close at $180.84 on Tuesday, down 3.56% year to date; it fell 8.05% to $166.27 after hours. If Texas Instruments closed at $166.27 on Wednesday, it would hit its lowest level since May 8.