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FINWIRES

Research Alert: Txn Beats Q1 And Guides Above Views; Fcf Story Playing Out

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

TXN delivered a strong Q1 beat with revenue of $4.83B (+19% Y/Y, +9% Q/Q) vs. $4.53B expected and EPS of $1.68 (+31% Y/Y) vs. the $1.37 consensus, driven by robust industrial and data center performance. Analog segment revenue of $3.92B (+22% Y/Y) with operating profit up 36% showcases TXN's franchise strength and ability to capture share as end markets recover. The diversified analog portfolio and strategic embedded processing investments position the company well for sustained growth in IoT and edge computing applications. Q2 guidance of $5.00B-$5.40B revenue and $1.77-$2.05 EPS compares favorably to consensus of $4.9B and $1.57, respectively, reflecting management confidence in demand trajectory. The dramatic FCF improvement to $4.35B (+154% Y/Y) and 23.6% of revenue demonstrates operating leverage as 300mm capacity utilization normalizes, with declining capex and enhanced CHIPS Act benefits creating powerful tailwinds for future cash generation.

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Sector Update: Tech Stocks Mixed Late Afternoon

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$IBM$META$NOW$TXN
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Sector Update: Energy

Energy stocks were higher late Thursday afternoon, with the NYSE Energy Sector Index and the State Street Energy Select Sector SPDR ETF (XLE) each adding 0.7%.The Philadelphia Oil Service Sector Index gained 0.9%, and the Dow Jones US Utilities Index climbed 2.7%.Front-month West Texas Intermediate crude oil was rising 3.6% to $96.32 a barrel, and the global benchmark Brent crude contract was advancing 3.6% to $105.54 a barrel. Henry Hub natural gas futures added 1% to $2.67 per 1 million BTU.In corporate news, NextEra Energy (NEE) shares jumped past 7%. The company reported Q1 adjusted earnings Thursday of $1.09 per diluted share, up from $0.99 a year earlier, and also above the average estimate of analysts polled by FactSet.

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Sector Update: Financial

Financial stocks were lower in late Thursday afternoon trading, with the NYSE Financial Index down 0.6% and the State Street Financial Select Sector SPDR ETF (XLF) falling 0.7%.The Philadelphia Housing Index rose 0.9%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) added 1.1%.Bitcoin (BTC-USD) was decreasing 0.4% to $77,852, and the yield for 10-year US Treasuries rose 2.9 basis points to 4.32%.In corporate news, American Express (AXP) shares were down 4.8% even after the payments giant reported better-than-expected Q1 results and reiterated its full-year outlook.

$AXP