Texas Instruments stock falls 13% as CEO warns of tariff concerns

• Texas Instruments shares dropped after the company issued weak earnings guidance and said uncertainty over tariffs has weighed on demand.
• The midpoint of the company's third-quarter earnings forecast came up short of analysts' expectations.
• CEO Haviv Ilan said some of the second-quarter strength may have come from a pull-forward in demand to acquire inventory ahead of tariffs.

Texas Instruments shares plunged 13% after the automotive and industrial semiconductor supplier warned of ongoing tariff aftershocks.

The company said it expects third-quarter earnings between $1.36 and $1.60 per share, a midpoint of $1.48 per share. That fell short of an LSEG estimate of $1.50.

Texas Instruments anticipates revenue between $4.45 billion and $4.48 billion. The midpoint of $4.63 billion was slightly ahead of the $4.59 billion expected by analysts.

In an earnings call with analysts, CEO Haviv Ilan said the company is experiencing a “shallow” recovery in the automotive sector and said customers may have lingering worries over tariffs and geopolitical uncertainty.

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Despite the postearnings slump, Texas Instruments posted a 16% year-over-year jump in revenue. The company reported earnings of $1.41 per share on $4.45 billion in revenue, surpassing the earnings of $1.35 per share on $4.36 billion in revenue expected by LSEG analysts.

Ilan said some of the second-quarter strength may have come from a pull-forward in demand to acquire inventory ahead of tariffs.

Net income for the company rose 15% to $1.3 billion, or $1.41 per share, from $1.13 billion, or $1.22 per share, a year ago.

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