Texas Instruments, a leading analog IC maker, has released its Q3 2025 results, with its cautious Q4 outlook sparking concerns over the broader semiconductor market. According to Reuters, the company expects fourth-quarter revenue between $4.22 billion and $4.58 billion, slightly below market estimates of $4.51 billion, based on data from LSEG. It also forecasts earnings per share of $1.13 to $1.39 for the quarter, missing expectations of $1.41.

For the third quarter, the chipmaker reported revenue of $4.74 billion, net income of $1.36 billion, and earnings per share of $1.48. According to its earnings release, revenue rose 7% sequentially and 14% year over year.

• Slow Market Recovery and Tariff Uncertainty Weigh on Texas Instruments’ Outlook

The report from Reuters, citing CEO Haviv Ilan, notes that while a recovery is underway, it remains slow, as the company continues to struggle with the lingering oversupply of analog chips. As Bloomberg notes, Texas Instruments had been enjoying a rebound in demand following a two-year slump, but the recovery now appears less certain.

In addition, Reuters highlights that tariff uncertainties are a key factor behind Texas Instruments’ weak outlook. CEO Haviv Ilan said that when the company speaks with customers—particularly in the industrial sector—many are hesitant to invest, build new factories, or increase capital spending, adopting a “wait-and-see” approach as tariff rates and rules remain unresolved.

As noted by Reuters, President Trump announced in August plans to impose a roughly 100% tariff on imported semiconductors, while offering exemptions to companies that manufacture in the U.S. or intend to do so. However, the move has not yet been formalized, leaving significant uncertainty over its timing and impact on the industry. In response to the broader push for domestic production, Texas Instruments has committed to investing over $60 billion to expand its U.S. manufacturing capacity, the report adds.

Meanwhile, according to Barron’s, during the earnings call, Wall Street analysts voiced concern about the gross margin implied by Texas Instruments’ current-quarter guidance. Management explained that the margin pressure stems mainly from rising depreciation expenses and reduced factory utilization.