Driven by strong data centre demand, Texas Instruments reports $4.42 billion in Q4 2025 revenue. The company sees continued semiconductor market recovery and solid growth prospects for 2026.
Texas Instruments (TI) reported strong fourth-quarter 2025 performance, with revenue reaching $4.42 billion, a 10% increase from the same period last year. This growth was driven primarily by demand in the data centre sector. However, the company’s quarterly results showed a 7% decline compared to Q3 2025.
Despite the quarterly drop, TI’s overall outlook for 2026 remains positive, with the semiconductor market continuing its recovery.
On a call with investors, CEO Haviv Ilan noted that TI is well-positioned with inventory and capacity to meet immediate customer demand as it enters 2026. Net income for Q4 2025 was $1.16 billion, down 3% year-on-year. The company’s performance was notably bolstered by ongoing growth in data centres, which have expanded for seven consecutive quarters.
Looking ahead, TI sees robust growth opportunities across multiple sectors. Ilan emphasised the strength of the company’s new capacity investments, which are expected to pay off in the coming year. He identified the industrial, data centre, and automotive markets as having the most growth potential.
Recovery is underway in the industrial market, and it is expected to set new records in the future, he stated.
The automotive sector, which accounts for around 35% of TI’s revenue, saw a 6% year-over-year increase, reaching $5.8 billion. The company anticipates further growth in this sector, particularly in China, which showed notable strength in Q4 2025.
TI also reported a strong cash flow, with operations generating $7.2 billion over the past year. The company has committed $3.9 billion to research and development, and $4.6 billion in capital expenditures.
Foreseeing Q1 2026, TI expects revenue to range from $4.32 billion to $4.68 billion, with earnings per share estimated between $1.22 and $1.48.
