Texas Instruments (NASDAQ:TXN) Releases Earnings Results, Beats Expectations By $0.23 EPS

Texas Instruments (NASDAQ:TXN) announced its quarterly earnings data on Wednesday. The semiconductor company reported $2.14 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23, FiscalAI reports. Texas Instruments had a net margin of 31.11% and a return on equity of 36.55%. The business had revenue of $5.46 billion for the quarter, compared to analyst estimates of $5.26 billion. During the same quarter in the previous year, the firm posted $1.41 earnings per share. The firm’s revenue for the quarter was up 22.8% on a year-over-year basis. Texas Instruments updated its Q3 2026 guidance to 2.230-2.570 EPS.

Here are the key takeaways from Texas Instruments’ conference call:

• Texas Instruments reported Q2 revenue of $5.5 billion, up 13% sequentially and 23% year over year, with strength in industrial, data center, and automotive markets.
• Management said demand broadened in the quarter and into Q3, with the company seeing accelerating automotive demand and continued growth in industrial and data center, leading to above-seasonal guidance.
• TI highlighted strong profitability and cash generation, including 61% gross margin, $2.7 billion of operating cash flow, and $6.5 billion of trailing 12-month free cash flow, while returning $5.8 billion to shareholders over the last year.
• The company kept its 2026 CapEx guidance at $2 billion-$3 billion and said its manufacturing footprint, clean room space, and inventory positioning leave it well prepared to support demand growth over the next several years.
• Management indicated that pricing was flat in the first half but has started to move higher, with increases expected to flow through progressively in Q3 and Q4, especially on the analog side.

Texas Instruments Price Performance

Texas Instruments stock traded down $5.88 during midday trading on Friday, reaching $279.12. 1,172,984 shares of the stock were exchanged, compared to its average volume of 8,129,549. The firm has a market cap of $254.02 billion, a PE ratio of 42.56, a PEG ratio of 1.51 and a beta of 1.32. Texas Instruments has a 52 week low of $152.73 and a 52 week high of $334.03. The company’s fifty day moving average is $301.53 and its 200-day moving average is $247.14. The company has a debt-to-equity ratio of 0.77, a quick ratio of 2.94 and a current ratio of 4.46.

Texas Instruments Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Investors of record on Friday, July 31st will be paid a dividend of $1.42 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $5.68 annualized dividend and a yield of 2.0%. Texas Instruments’s payout ratio is currently 97.26%.

Texas Instruments News Roundup

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Texas Instruments beat Q2 estimates with EPS of $2.14 on revenue of $5.46 billion, while management raised Q3 guidance above Wall Street forecasts and highlighted recovery in industrial, data center and automotive demand. Article Title
• Positive Sentiment: JPMorgan raised its price target on TXN to $340 and kept an overweight rating, while KeyCorp lifted its target to $400 and TD Cowen maintained a buy rating with a $340 target. Article Title
• Positive Sentiment: Mizuho also raised its target to $305, citing data center growth, reinforcing the view that long-term chip demand remains healthy. Article Title
• Neutral Sentiment: Broader semiconductor stocks and ETFs are rallying on AI enthusiasm ahead of Intel earnings, which supports sector sentiment but does not directly change TXN’s fundamentals. Article Title
• Negative Sentiment: Despite the strong report, TXN shares fell as investors worried the quarter may have been “good enough” rather than a fresh catalyst, with some coverage calling it a warning sign for the chip sector after a big rally. Article Title

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on TXN shares. TD Cowen lowered their price target on Texas Instruments from $360.00 to $340.00 and set a “buy” rating on the stock in a research report on Thursday. UBS Group reiterated a “buy” rating and set a $380.00 price target on shares of Texas Instruments in a report on Thursday. Truist Financial raised their target price on Texas Instruments from $278.00 to $300.00 and gave the stock a “hold” rating in a research report on Thursday. Evercore reiterated an “outperform” rating and set a $330.00 price target on shares of Texas Instruments in a report on Thursday. Finally, Zacks Research downgraded Texas Instruments from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. Fourteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $308.40.

Insiders Place Their Bets

In other Texas Instruments news, Director Carrie Smith Cox sold 8,838 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $306.41, for a total value of $2,708,051.58. Following the completion of the transaction, the director owned 37,626 shares of the company’s stock, valued at $11,528,982.66. The trade was a 19.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Shanon J. Leonard sold 4,963 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $295.22, for a total value of $1,465,176.86. Following the completion of the transaction, the vice president directly owned 24,867 shares in the company, valued at approximately $7,341,235.74. This represents a 16.64% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 199,143 shares of company stock valued at $56,959,010 over the last three months. Corporate insiders own 0.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in TXN. Brighton Jones LLC raised its holdings in shares of Texas Instruments by 33.4% during the fourth quarter. Brighton Jones LLC now owns 16,840 shares of the semiconductor company’s stock valued at $3,158,000 after acquiring an additional 4,218 shares in the last quarter. Intech Investment Management LLC lifted its holdings in shares of Texas Instruments by 12.8% during the first quarter. Intech Investment Management LLC now owns 9,084 shares of the semiconductor company’s stock valued at $1,632,000 after purchasing an additional 1,031 shares during the last quarter. Osterweis Capital Management Inc. boosted its position in shares of Texas Instruments by 1,810.0% in the 2nd quarter. Osterweis Capital Management Inc. now owns 191 shares of the semiconductor company’s stock worth $40,000 after purchasing an additional 181 shares in the last quarter. Main Street Financial Solutions LLC grew its stake in shares of Texas Instruments by 1.7% in the 2nd quarter. Main Street Financial Solutions LLC now owns 7,417 shares of the semiconductor company’s stock worth $1,540,000 after buying an additional 126 shares during the last quarter. Finally, HUB Investment Partners LLC increased its position in Texas Instruments by 3.5% during the 2nd quarter. HUB Investment Partners LLC now owns 14,673 shares of the semiconductor company’s stock valued at $3,046,000 after buying an additional 496 shares in the last quarter. Institutional investors own 84.99% of the company’s stock.

About Texas Instruments

Texas Instruments Inc (NASDAQ: TXN) is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company’s products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI’s business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI’s product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.