Citi reiterates Buy rating on Texas Instruments stock despite guidance miss

Published 23/07/2025, 12:24
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Investing.com - Citi maintained its Buy rating and $260.00 price target on Texas Instruments (NASDAQ:TXN), a $195 billion semiconductor giant trading near its 52-week high of $221.69, following the company’s latest earnings report. InvestingPro data shows the stock currently trades at a P/E ratio of 40.37.

Texas Instruments reported results above consensus expectations, with strength primarily driven by upside from China, though the company noted that tariff-related pull-ins likely contributed to some of the performance.

Despite the earnings beat, Texas Instruments issued guidance below consensus estimates, causing its stock to trade lower after the announcement.

Citi attributed the stock decline to the lower guidance and a change in tone from the company, which appears to be related to a slowdown in orders.

The investment firm views the pullback as a buying opportunity, stating that it believes "the analog upturn remains intact driven by low inventory, depressed margins and improving demand."

In other recent news, Texas Instruments reported strong financial results for the second quarter of 2025. The company’s revenue reached $4.4 billion, marking a 16% increase compared to the same period last year. Earnings per share were reported at $1.41, exceeding analysts’ expectations of $1.35. These results highlight Texas Instruments’ solid performance over the quarter. While the market reacted cautiously to the earnings announcement, the financial figures underscore the company’s growth. There were no significant mergers or acquisitions reported in this period. Additionally, no analyst upgrades or downgrades were noted. Investors may be interested in these developments as they reflect the company’s current financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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