Up to $4 Billion! Texas Instruments and STMicroelectronics Release First Earnings Reports

Texas Instruments and STMicroelectronics have released their first-quarter financial results. For Texas Instruments, revenue has returned to growth for the first time in 10 quarters. Meanwhile, STMicroelectronics remains in a declining trend, but it is expected that the first quarter marks the bottom, with a projected 7% revenue increase in the next quarter.

Texas Instruments reported Q1 revenue of $4.069 billion, up 11% year-over-year and 2% quarter-over-quarter. Operating profit rose 3% year-over-year to $1.324 billion. Analog chip revenue grew 13% YoY to $3.21 billion, with operating profit up 20% to $1.206 billion. However, embedded processing chip revenue fell 1% to $647 million, with operating profit dropping 62% to $40 million.

This earnings report exceeded market expectations, marking the company’s first sales growth since 2022.

However, concerns remain in the market: is this growth driven by customers rushing orders ahead of potential tariffs? Texas Instruments CEO Haviv Ilan dismissed this notion, saying, “There is growing 

evidence and signals that the industrial market is recovering across all channels and regions. I believe this is a genuine recovery, unrelated to tariffs—at least for the first quarter.”In contrast, STMicroelectronics’ market response has lagged behind TI. In the first quarter, net revenue was $2.52 billion, down 24% quarter-over-quarter. Gross margin stood at 33.4%, with net profit at $560 million.

While Q1 net profit met expectations—mainly due to increased revenue from personal electronics—the underperformance in the automotive and industrial sectors partially offset the gains. The company expects an overall improvement in Q2.

STMicroelectronics forecasts Q2 revenue of $2.71 billion, representing a 16.2% year-over-year decline but a 7.7% quarter-over-quarter increase—above analysts' expectations of $2.62 billion. Gross margin is projected at 33.4%. However, the company noted that this outlook does not factor in any potential further tariff changes.

The automotive and industrial chip sectors are currently in the early stages of a cyclical recovery from a deep downturn. Regardless of macroeconomic uncertainties, improvements are expected in Q2 2025 and into 2026.