Texas Instruments Revenue Rises 28% as Data-Center Revenue Nearly Doubles

Texas Instruments posted $6.055 billion in third-quarter revenue, up 28% year over year, as data-center revenue nearly doubled and net income rose 78% at the U.S. chipmaker.

The results, released Oct. 21, cover the three months through Sept. 30. Revenue gained 11% from the second quarter. Net income climbed to $2.425 billion from $1.364 billion in the year-earlier period. Diluted GAAP earnings per share (EPS) were $2.62, a 77% increase from a year earlier.

Discrete tax items lowered EPS by one cent; the impact was outside the company’s original guidance. Third-quarter revenue landed within the July forecast range of $5.65 billion to $6.15 billion. EPS exceeded the July outlook of $2.23 to $2.57.

Data-center revenue rose about 95% from the year-earlier quarter and about 20% from the second quarter. Industrial revenue increased more than 40% year over year, while automotive revenue grew at a mid-teens rate.

Haviv Ilan, chairman, president and CEO of Texas Instruments, said, “Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.”

Analog revenue reached $4.911 billion, up 32% year over year. Embedded Processing revenue was $858 million, an increase of 21%. Its analog and embedded chips serve industrial and automotive applications, data centers, personal electronics and communications equipment.

Reported revenue was higher than the $5.93 billion estimate previously cited for the quarter.

For the fourth quarter, Texas Instruments forecast revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79.