Texas Instruments Inc (NASDAQ: TXN) reported its financial results for the fourth quarter on Tuesday after the market closed, revealing a blend of near-term challenges and promising prospects. The company’s fourth-quarter revenue reached $4.42 billion, slightly underperforming vs. analysts' consensus estimates of $4.44 billion. Earnings per share (EPS) for the quarter were reported at $1.27, below the anticipated $1.30. Notably, the company highlighted that included in the reported EPS was a reduction of six cents due to factors not reflected in prior guidance, contributing to the shortfall.
Despite the misses, Texas Instruments demonstrated a 10% year-over-year increase in total revenue, reflecting ongoing demand dynamics in its industry segments. The company continues to generate substantial cash flow, with $7.2 billion in operating cash over the trailing twelve months and $2.9 billion in free cash flow during the same period. This financial strength underpins TXN’s continuing investments and shareholder returns.
Over the past year, Texas Instruments invested $3.9 billion in research and development (R&D) and selling, general, and administrative expenses (SG&A), underscoring commitment to innovation and operational support. Additionally, capital expenditures totaled $4.6 billion, aiming to expand capacity and maintain competitive positioning. Shareholder value remained a priority as the company returned $6.5 billion to owners through dividends and share repurchases.
At the end of the quarter, the company held $3.23 billion in cash and cash equivalents, providing a solid liquidity cushion for ongoing operations and strategic initiatives.
Looking ahead, Texas Instruments projected first-quarter revenue in a range between $4.32 billion and $4.68 billion, compared to the consensus estimate of $4.42 billion. This guidance suggests confidence in continued growth momentum. The anticipated EPS range for the first quarter is $1.22 to $1.48 per share, also above the consensus forecast of $1.26. This optimistic outlook contributed to an upward move in the stock price during after-hours trading.
The company scheduled an earnings call at 4:30 p.m. Eastern Time, where its executives plan to discuss quarterly results and provide further insight on future operations.
Following the earnings release, Texas Instruments shares rose 5.17% in after-hours trading, reaching a price of $206.80 as of the publication time, indicating positive investor reception to the outlook despite the slight Q4 earnings miss.