Revenue Growth: Texas Instruments (TI) reported Q2 2025 revenue of $4.4 billion, representing a 9% sequential increase and a 16% year-over-year growth. Revenue was driven by strong performance in Analog (18% YOY growth) and Embedded Processing (10% YOY growth), indicating robust demand across various key sectors.

Market Dynamics: The company highlighted a dual dynamic in the market: ongoing supply chain disruptions from tariffs and geopolitics, and a cyclical recovery in semiconductor demand. TI is well-positioned to navigate these challenges with flexible manufacturing capabilities. However, the automotive market faces a slower recovery, having increased only mid-single digits YOY and decreased slightly sequentially.

Guidance and Outlook: For Q3 2025, TI expects revenue between $4.45 billion to $4.80 billion and earnings per share (EPS) in the range of $1.36 to $1.60. This guidance reflects a more cautious outlook compared to the previous optimism expressed in the last earnings call, suggesting potential normalization in demand growth rates and market conditions.