Texas Instruments Says Data Centers, Industrial Recovery Driving Growth into 1Q — Update

By Katherine Hamilton

Texas Instruments said it expects earnings growth in the current quarter as data centers contribute more to sales and the industrial market recovers.

Due to seasonal trends, the semiconductor company usually records lower earnings in the first quarter compared with the fourth quarter. But this year, management's midpoint guidance for first-quarter earnings is ahead of what it reported in the fourth quarter.

Shares rose 8.7% to $213.54 in after-hours trading Tuesday. Through the close, shares have gained 18% over the past three months.

Texas Instruments on Tuesday posted a profit of $1.16 billion, or $1.27 a share, in the quarter ended Dec. 31, compared with $1.21 billion, or $1.30 a share, a year earlier. Analysts polled by FactSet were expecting $1.29 a share.

For the current first quarter, Texas Instruments expects earnings per share to be $1.22 to $1.48 in the current first quarter. At the midpoint, that would be $1.35 a share, ahead of the $1.26 analysts were projecting.

Management said on a call with investors that it is seeing some recovery in the industrial market, which is making it easier to log earnings growth compared with past quarters. Data centers are also contributing more to revenue. Orders also improved through the fourth quarter, executives said.

Revenue in the fourth quarter rose 10% to $4.42 billion. Analysts surveyed by FactSet forecast revenue of $4.44 billion.

The company anticipates revenue in the first quarter will be $4.32 billion to $4.68 billion, while Wall Street was looking for $4.42 billion.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

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January 27, 2026 18:07 ET (23:07 GMT)