Tech Earnings Preview: Expectations for Intel and Texas Instruments
The 2025 Q1 earnings season is well underway, showcasing a variety of companies gearing up to report their quarterly results this week. Notably, among these are semiconductor giants Intel (INTC) and Texas Instruments (TXN). Both stocks have faced challenges in 2025, reflecting broader pressures in the semiconductor industry, although Intel shares have shown greater resilience.
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Now, let’s examine what to anticipate from these companies.
Stable Expectations for Texas Instruments
For Texas Instruments, earnings per share (EPS) and sales forecasts have remained stable. Analysts project a 12% decline in EPS, while sales are expected to rise by 6.7%. This profitability trend, marked by declining EPS, is notable and reflects a continuing pattern.
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The company’s valuation appears stretched, with a current forward 12-month earnings multiple of 25.6X, which represents a 34% premium over the S&P 500 and exceeds the 24.6X five-year median.
Texas Instruments also has a PEG ratio of 2.2X, alongside a Value Style Score of ‘D’.
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Additionally, the company’s strong cash flow enables consistent dividend increases, yielding a competitive 9% five-year annualized growth rate in dividends. Observers will be keenly watching the cash flow metrics in the upcoming earnings report, especially considering a decline in this area during the latest period.
Below is a chart showing the dividends Texas Instruments has paid quarterly.
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Can Intel Recover?
Intel has significantly lagged in recent years, especially amid the surge in AI investments; the stock has fallen over 30% in the last two years. The results from 2024 consistently pressured the company, as illustrated below.
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Recent months have seen a downward adjustment in EPS and sales expectations for Intel’s upcoming quarter. Analysts anticipate a substantial 94% decline in EPS, coupled with a 3% reduction in sales. The quarterly charts show that the company’s revenue generation has struggled to show significant growth in recent periods.
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Intel needs a fresh narrative to invigorate investor interest, particularly with the recent change in leadership. Upcoming guidance and commentary will be crucial for determining how the market reacts to their earnings results, although it is worth noting that the stock has already faced substantial declines.
Bottom Line
This week’s earnings reporting calendar looks particularly active as we navigate the Q1 earnings cycle for 2025. Important releases from semiconductor leaders Intel and Texas Instruments are on the horizon, with future guidance expected to significantly influence post-earnings stock movements.
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Intel Corporation (INTC) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
