By Tae Kim

Shares of Texas Instruments were rising after the chip maker provided a revenue forecast for the June quarter that was above expectations.

For its latest March quarter, the company reported earnings per share of $1.28, compared to Wall Street's consensus estimate of $1.07, according to FactSet. Revenue came in at $4.07 billion, which was better than analysts' expectation of $3.91 billion.

Texas Instruments also gave a solid outlook. The company provided a revenue forecast range for the current quarter of $4.17 billion to $4.53 billion, above the consensus estimate of $4.1 billion.

Texas Instruments shares rose 10% in Thursday trading, the morning after the release. It lost some of those gains after management talked about the current unpredictable business environment on their earnings conference call with investors and analysts.

On the call, management said there is "high uncertainty" in the environment due to tariffs and geopolitics, but that they don't see a near- term effect on revenue for the June quarter. Management also said revenue in the industrials segment increased sequentially during the March quarter after seven consecutive quarters of decline.

One Wall Street analyst asked if the recovery was driven by customers pulling forward orders in response to concern about higher tariffs in the future. Texas Instruments management said customers don't tell them the reasoning behind their order patterns.

The chip maker sells the basic building-block chips that go into products in nearly every sector of the economy, from autos and industrials to consumer electronics. Because the company's more than 100,000 customers are such a varied group, investors consider Texas Instruments to be a bellwether for the technology industry.

Texas Instruments shares stock is down 19% this year, compared with the 20% decline for the iShares Semiconductor ETF.

The chip maker is the first major semiconductor company to report this March quarter earnings season.

Write to Tae Kim at tae.kim@barrons.com

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April 24, 2025 09:20 ET (13:20 GMT)

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