Investing.com -- Texas Instruments Incorporated (NASDAQ: TXN) shares jumped 5% in after-hours trading Tuesday after the semiconductor company issued first-quarter guidance that exceeded analyst expectations at the midpoint, despite reporting mixed fourth-quarter results.

The chipmaker reported fourth-quarter revenue of $4.42 billion, slightly below the analyst consensus of $4.45 billion, but up 10% YoY. Adjusted earnings per share came in at $1.27, missing estimates by $0.02 and declining 2% from $1.30 in the same quarter last year. The company noted that earnings included a 6-cent reduction that wasn’t in its original guidance.

Looking ahead, Texas Instruments provided first-quarter guidance that impressed investors, projecting revenue between $4.32 billion and $4.68 billion, with the $4.5 billion midpoint above the $4.42 billion consensus. The company expects earnings per share between $1.22 and $1.48, with the $1.35 midpoint surpassing analysts’ expectations of $1.28.

"Revenue decreased 7% sequentially and increased 10% from the same quarter a year ago," said Haviv Ilan, TI’s chairman, president and CEO. "Our cash flow from operations of $7.2 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production."

The company’s Analog segment, its largest business unit, posted revenue of $3.62 billion, up 14% YoY, while Embedded Processing revenue increased 8% to $662 million.

For the full year 2025, Texas Instruments generated $17.68 billion in revenue, up 13% from $15.64 billion in 2024. Free cash flow nearly doubled to $2.94 billion from $1.5 billion in the previous year.

The company returned $6.48 billion to shareholders over the past 12 months through dividends and stock repurchases, a 13% increase from the prior year.