Texas Instruments (NASDAQ:TXN) Issues Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Texas Instruments (NASDAQ:TXN) posted its earnings results on Wednesday. The semiconductor company reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.40 by $0.22, Zacks reports. The firm had revenue of $6.05 billion during the quarter, compared to analysts’ expectations of $5.94 billion. Texas Instruments had a return on equity of 41.79% and a net margin of 34.25%. The company’s revenue was up 27.7% on a year-over-year basis. During the same period in the previous year, the firm earned $1.48 earnings per share.

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

• Positive Sentiment: Third-quarter revenue rose 11% sequentially and 28% year over year to $6.1 billion, with broad-based growth across regions and end markets. Industrial revenue increased more than 40%, data center grew about 95%, and automotive rose in the mid-teens year over year.
• Positive Sentiment: Profitability and cash generation strengthened significantly: gross margin reached 64%, operating profit rose 73% year over year to $2.9 billion, and trailing-12-month free cash flow increased to $8.4 billion. TI also raised its dividend 7% to $1.52 per share, its 23rd consecutive annual increase.
• Positive Sentiment: Management issued fourth-quarter revenue guidance of $5.8 billion to $6.3 billion and EPS guidance of $2.45 to $2.79, implying stronger-than-usual seasonal performance. Data center demand remains robust, while industrial recovery, energy infrastructure, aerospace and defense, robotics, and automotive—particularly EV-related demand—are providing additional momentum.
• Neutral Sentiment: Demand is tightening supply conditions, with lead times ticking higher and some back-end equipment availability constraints. TI plans to continue investing in manufacturing capacity, with 2026 capital expenditures expected near the high end of its $2 billion-$3 billion range, while pricing discussions for 2027 are ongoing.

Texas Instruments Price Performance

Texas Instruments stock traded up $3.39 during midday trading on Friday, reaching $282.89. The company’s stock had a trading volume of 998,581 shares, compared to its average volume of 7,573,714. Texas Instruments has a 52 week low of $152.73 and a 52 week high of $334.03. The company has a current ratio of 4.86, a quick ratio of 3.44 and a debt-to-equity ratio of 0.72. The business has a 50-day moving average price of $271.88 and a 200-day moving average price of $279.43. The stock has a market cap of $258.35 billion, a PE ratio of 42.88, a price-to-earnings-growth ratio of 1.59 and a beta of 1.35.

Texas Instruments Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be paid a $1.52 dividend. This represents a $6.08 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Friday, October 30th. This is a positive change from Texas Instruments’s previous quarterly dividend of $1.42. Texas Instruments’s dividend payout ratio is 86.45%.

More Texas Instruments News

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

• Positive Sentiment: Q3 results exceeded expectations: Revenue rose 28% year over year to $6.06 billion, while earnings per share increased to $2.62 from $1.48 and topped the $2.40 consensus estimate. Net income climbed 78% to $2.43 billion. Growth was broad across industrial, automotive and data-center markets. TI reports third quarter 2026 financial results and shareholder returns
• Positive Sentiment: Data-center and industrial momentum strengthened: Data-center revenue grew 95% year over year, while record industrial revenue and rising factory utilization support expectations for broader analog-chip recovery and stronger cash flow. Texas Instruments: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Q4 outlook was above Wall Street expectations: Management’s revenue forecast of approximately $6.05 billion at the midpoint was reported to be about 5.6% above consensus, indicating that AI-related demand is benefiting analog components. TXN Q3 deep dive
• Positive Sentiment: Analyst sentiment improved: JPMorgan, Stifel, Rosenblatt and Freedom Broker raised their price targets, with targets ranging from $330 to $370. Zacks also added TXN to its Rank #1 Strong Buy lists. JPMorgan price target update
• Neutral Sentiment: Unusually high call-option activity and continued institutional buying suggest some investors are positioning for further upside, although these signals do not guarantee a sustained rally.
• Negative Sentiment: Valuation and guidance risk remain concerns: TXN trades at roughly 42.5 times earnings, leaving little room for execution misses. Analysts noted that the wide Q4 guidance range and the stock’s premium valuation could limit gains even as operating results improve. Mizuho reduced its target to $290 and maintained a neutral rating.
• Negative Sentiment: Some investors argue that strong results are already reflected in the share price, creating a “good news, bad reaction” risk. Recent insider activity has also consisted entirely of reported sales, though insider transactions may reflect compensation or portfolio decisions rather than a direct outlook on TXN.

Analysts Set New Price Targets

A number of equities analysts have recently commented on TXN shares. KeyCorp increased their price objective on shares of Texas Instruments from $390.00 to $400.00 and gave the stock an “overweight” rating in a research note on Thursday, July 23rd. Mizuho lowered their target price on Texas Instruments from $305.00 to $290.00 and set a “neutral” rating on the stock in a research report on Thursday. Evercore reiterated an “outperform” rating and set a $330.00 target price (up from $316.00) on shares of Texas Instruments in a report on Thursday, July 23rd. The Goldman Sachs Group reissued a “sell” rating and set a $250.00 price target on shares of Texas Instruments in a research report on Thursday. Finally, Truist Financial set a $305.00 price target on Texas Instruments in a research report on Thursday. Sixteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $311.39.

Insider Transactions at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $264.63, for a total value of $1,852,410.00. Following the completion of the transaction, the vice president directly owned 23,181 shares in the company, valued at approximately $6,134,388.03. This represents a 23.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.60% of the stock is currently owned by corporate insiders.

Texas Instruments Company Profile

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.

The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.