Texas Instruments (TXN) shares tumbled 7.69% in after-hours trading on Tuesday following the release of its second-quarter earnings report. While the company beat expectations for Q2, its guidance for the third quarter fell short of analyst estimates, causing concern among investors.

For the second quarter, Texas Instruments reported earnings per share of $1.41, surpassing the analyst consensus estimate of $1.33. Revenue came in at $4.45 billion, also beating the expected $4.36 billion. The company's performance showed a 16% year-over-year increase in both revenue and earnings per share.

However, the semiconductor giant's outlook for the third quarter disappointed Wall Street. Texas Instruments forecasts Q3 earnings per share between $1.36 and $1.60, with the midpoint falling below the consensus estimate of $1.49. The company expects Q3 revenue in the range of $4.45 billion to $4.80 billion, compared to analysts' expectations of $4.59 billion. This guidance suggests potential headwinds in the coming quarter, leading to the sharp sell-off in after-hours trading.