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    How Investors May Respond To Texas Instruments (TXN) Legal Scrutiny And Cautious Earnings Expectations

    Simply Wall St·12/14/2025 02:31:18
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    • In recent months, Texas Instruments has drawn heightened attention as it approaches an earnings release, with analysts forecasting revenue growth but slightly lower earnings per share year over year, alongside ongoing dividend increases and a Zacks Rank of #4 (Sell) signaling cautious sentiment.
    • At the same time, lawsuits alleging that its chips indirectly ended up in Russian weapons, combined with mixed analyst views and shifting tariffs, have added legal and geopolitical uncertainty to an already complex outlook.
    • Next, we’ll examine how cautious earnings expectations and these new legal challenges could influence Texas Instruments’ longer-term investment narrative.

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    Texas Instruments Investment Narrative Recap

    To own Texas Instruments, you have to believe its focus on long-life industrial and automotive chips, plus heavy U.S. fab investment, will outweigh cyclical softness and rising competition. In the near term, the key catalyst remains how upcoming earnings confirm or challenge expectations for modest EPS and revenue growth. The largest new risk is the legal and geopolitical overhang from lawsuits tied to alleged chip diversion into Russian weapons, which could prove more material than tariff noise.

    In that context, the recent lawsuits sit alongside softer revenue trends and margin compression, which have already weighed on sentiment and contributed to a Zacks Rank of #4 (Sell). At the same time, TI’s ongoing dividend increases, including the September 2025 hike to US$1.42 per quarter, underline management’s confidence in cash generation, even as investors weigh how legal, geopolitical, and tariff risks might affect the payoff from its big manufacturing buildout.

    Yet beneath TI’s steady dividend story, investors should be aware of how lawsuits tied to alleged sanctions violations could...

    Read the full narrative on Texas Instruments (it's free!)

    Texas Instruments' narrative projects $22.3 billion revenue and $7.9 billion earnings by 2028.

    Uncover how Texas Instruments' forecasts yield a $188.92 fair value, a 5% upside to its current price.

    Exploring Other Perspectives

    TXN 1-Year Stock Price Chart
    TXN 1-Year Stock Price Chart

    Some of the most optimistic analysts were counting on revenue reaching about US$27.9 billion and earnings near US$11.7 billion, yet today’s legal and geopolitical questions, including TI’s exposure to shifting supply chains, show how far opinions can differ and why you may want to compare multiple scenarios before deciding what you think is realistic.

    Explore 10 other fair value estimates on Texas Instruments - why the stock might be worth 30% less than the current price!

    Build Your Own Texas Instruments Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.