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Axxcess Wealth Management LLC reduced its stake in Texas Instruments Incorporated (NASDAQ:TXN – Free Report) by 41.4% during the third quarter, according to its most recent filing with the SEC. The fund owned 8,978 shares of the semiconductor company’s stock after selling 6,332 shares during the quarter. Axxcess Wealth Management LLC’s holdings in Texas Instruments were worth $2,515,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Crossmark Global Holdings Inc. boosted its position in Texas Instruments by 104.6% during the third quarter. Crossmark Global Holdings Inc. now owns 207,574 shares of the semiconductor company’s stock worth $58,139,000 after purchasing an additional 106,111 shares during the period. Kraft Davis & Associates LLC grew its holdings in shares of Texas Instruments by 4.4% during the third quarter. Kraft Davis & Associates LLC now owns 827 shares of the semiconductor company’s stock worth $230,000 after purchasing an additional 35 shares in the last quarter. Strengthening Families & Communities LLC increased its holdings in shares of Texas Instruments by 3.1% in the 3rd quarter. Strengthening Families & Communities LLC now owns 5,442 shares of the semiconductor company’s stock worth $1,524,000 after buying an additional 165 shares during the last quarter. Sowell Financial Services LLC increased its stake in Texas Instruments by 7.3% in the third quarter. Sowell Financial Services LLC now owns 4,950 shares of the semiconductor company’s stock valued at $1,386,000 after acquiring an additional 338 shares during the last quarter. Finally, Atticus Wealth Management LLC raised its position in Texas Instruments by 5.8% during the third quarter. Atticus Wealth Management LLC now owns 1,829 shares of the semiconductor company’s stock valued at $512,000 after purchasing an additional 101 shares in the last quarter. Hedge funds and other institutional investors own 84.99% of the company’s stock.

Texas Instruments Price Performance Shares of Texas Instruments stock opened at $279.50 on Friday. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. Texas Instruments Incorporated has a one year low of $152.73 and a one year high of $334.03. The business’s 50 day simple moving average is $271.88 and its two-hundred day simple moving average is $279.43. The stock has a market capitalization of $255.25 billion, a P/E ratio of 36.92, a price-to-earnings-growth ratio of 1.59 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN – Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, beating analysts’ consensus estimates of $2.40 by $0.22. Texas Instruments had a return on equity of 41.79% and a net margin of 34.25%. The firm had revenue of $6.05 billion during the quarter, compared to analyst estimates of $5.94 billion. During the same quarter in the prior year, the firm posted $1.48 earnings per share. The business’s quarterly revenue was up 27.7% compared to the same quarter last year. Analysts forecast that Texas Instruments Incorporated will post 8.49 EPS for the current year. Texas Instruments Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be given a dividend of $1.52 per share. This represents a $6.08 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend 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 currently 86.45%.

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

Positive Sentiment: Q3 results exceeded expectations: Revenue rose 27.7% year over year to $6.06 billion, while EPS reached $2.62 versus the $2.40 consensus estimate. Net income increased 78% to $2.43 billion, supported by broad-based growth in industrial, automotive and data-center markets. Texas Instruments third-quarter financial results Positive Sentiment: Data-center demand is accelerating: Data-center revenue grew 95% year over year, while industrial demand reached a record level. Management also highlighted improving factory utilization and capacity expansion aimed at supporting long-term cash-flow growth. Texas Instruments key takeaways Positive Sentiment: Forecasts and analyst views improved: Fourth-quarter revenue guidance was reportedly above Wall Street expectations, and JPMorgan, Stifel, Rosenblatt and Freedom Broker raised their price targets, with targets ranging from $330 to $370. Texas Instruments earnings call highlights Neutral Sentiment: Options activity increased: Traders purchased 19,194 TXN call options, approximately 7% above average daily call volume, indicating heightened interest but not necessarily a sustained change in fundamentals. Negative Sentiment: Strong results were not enough to overcome valuation concerns: With TXN trading at a high earnings multiple, investors may have expected an even stronger outlook. Analysts noted that share performance could continue to lag business results if expectations remain elevated. Texas Instruments valuation analysis Negative Sentiment: Analyst opinion remains divided: Mizuho lowered its price target to $290 and kept a neutral rating, while Wells Fargo also maintained a cautious stance. This signals that some investors view much of the recovery as already reflected in the stock. Wall Street Analyst Weigh In A number of equities analysts have recently issued reports on the company. KeyCorp upped their price objective on Texas Instruments from $390.00 to $400.00 and gave the stock an “overweight” rating in a report on Thursday, July 23rd. Susquehanna reissued a “positive” rating on shares of Texas Instruments in a report on Thursday. Zacks Research downgraded Texas Instruments from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 21st. Wells Fargo & Company cut their target price on Texas Instruments from $310.00 to $300.00 and set an “equal weight” rating for the company in a research note on Tuesday. Finally, Rosenblatt Securities increased their price target on shares of Texas Instruments from $350.00 to $360.00 and gave the company a “buy” rating in a research report on Thursday. Sixteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Texas Instruments has a consensus rating of “Hold” and a consensus target price of $311.39.

Check Out Our Latest Analysis on Texas Instruments

Insider Buying and Selling In other Texas Instruments news, VP Tsedeniya Abraham sold 7,000 shares of the stock in a transaction that occurred 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 sale, the vice president owned 23,181 shares in the company, valued at approximately $6,134,388.03. This trade represents a 23.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.60% of the stock is owned by insiders.

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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.

Recommended Stories Five stocks we like better than Texas Instruments Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check Want to see what other hedge funds are holding TXN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Texas Instruments Incorporated (NASDAQ:TXN – Free Report).

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On its third quarter of 2026 earnings call, held on Oct. 21, 2026, Texas Instruments (TXN -1.81%) announced that revenue reached $6.1 billion as broad demand across industrial and data center markets signaled a cyclical recovery. Expanding internal manufacturing capacity positions the business to capture long-term chip demand while avoiding reliance on external manufacturing partners. Three things management said on the earnings call stand out.

1. Industrial and Data Center Demand Drive Profit Margins HigherRevenue from data center products nearly doubled year over year, while industrial demand reached a new revenue peak after four years of recovery. This operational leverage, combined with favorable product mix, drove gross margin, the percentage of revenue retained after direct production costs, up 2.8 percentage points sequentially to 64%.

Yes, our margins in third quarter was really driven by higher revenue. That is the largest reason for that increase. But we also did have some benefit from pricing, loadings, and some product and end market mix.
-- Julie C. Knecht, Chief Financial Officer2. Tight Analog Capacity Creates Selective Pricing LeverageIndustry-wide capacity additions for analog chips, which process real-world signals like temperature and sound, have remained scarce outside China and Taiwan since 2022. Management used urgent mid-year supply requests from customers to secure higher pricing across parts of its product portfolio.

Regarding pricing specifically, look, most of our pricing discussions are done once a year with our customers, but we did see some areas in the middle of the year where we had the opportunity to talk to customers that wanted more supply more urgently.
-- Haviv Ilan, Chief Executive Officer3. Internal Factory Expansion Secures Control Over Supply ChainsBy investing in clean room floor space and wafer fabrication facilities during previous industry downturns, the business established a dependable production hub. Management is expanding capital expenditures, or cash used for physical equipment and facilities, toward $3 billion for 2026 to install assembly tools and meet accelerating customer orders.

We are in a position to control our destiny. We have taken care of the long lead time investments on clean rooms, including all the subfab and all the -- to be fair, the equipment that takes right now a very long time to get and build and get qualified.
-- Haviv Ilan, Chief Executive OfficerLooking AheadDemand across industrial, automotive, and data center markets is lifting fourth-quarter guidance above typical seasonal patterns, and management is not hiding its satisfaction about it. Operating internal wafer fabrication and packaging sites gives the company a structural cost advantage that protects supply availability.

Management is watching tool delivery lead times and customer contract negotiations to set capital expenditure levels entering 2027.

During the quarter, we saw broad demand with revenue growth across all end markets and regions. Secular growth of semiconductor content is continuing alongside a strong cyclical recovery.
-- Haviv Ilan, Chief Executive OfficerFree cash flow, the cash left over after paying operating and capital expenses, reached $8.4 billion on a trailing 12-month basis. Management remains focused on converting expanding internal capacity into cash generation for shareholders over time.

We continue to invest in our competitive advantages, which are manufacturing and technology, a broad product portfolio, reach of our channels, and diverse and long-lived positions. We will continue to strengthen these advantages through disciplined capital allocation and by focusing on the best opportunities which we believe will enable us to continue to deliver free cash flow per share growth over the long term.
-- Julie C. Knecht, Chief Financial OfficerThe Motley Fool has positions in and recommends Texas Instruments. The Motley Fool has a disclosure policy.

Key Takeaways Texas Instruments Q3 earnings jumped 77% and revenues rose 28%, driven by broad-based semiconductor demand.Industrial revenues up over 40% while data center sales surged 95%, strengthening TXN's growth outlook.TXN's capacity expansion, improving margins and $8.4B free cash flow support its long-term investment appeal.
Texas Instruments Incorporated (TXN - Free Report) emphasized strengthening semiconductor demand, expanding manufacturing capacity and improving profitability during its third-quarter 2026 earnings call. Management highlighted broad-based growth across industrial, automotive and data center markets.

CEO Haviv Ilan attributed the momentum to a combination of cyclical recovery and increasing semiconductor content in customer applications. The company is prioritizing capacity expansion to support demand while maintaining its focus on long-term free cash flow growth.

TXN Earnings Beat Estimates Amid Broad DemandTexas Instruments reported third-quarter earnings of $2.62 per share, surpassing the Zacks Consensus Estimate of $2.40. Revenues reached $6.06 billion, exceeding the Zacks Consensus Estimate of $5.93 billion. Earnings increased 77% year over year, while revenues rose 28%.

Gross margin reached 64%, improving 280 basis points sequentially. CFO Julie Knecht attributed the improvement primarily to higher revenues, alongside pricing, factory utilization and product mix benefits.

Analog revenues grew 32% year over year, while Embedded Processing increased 21%. Both businesses recorded sequential growth, reflecting strengthening demand across the portfolio.

TI Sees Above-Seasonal Demand in Q4Management projected fourth-quarter revenues between $5.8 billion and $6.3 billion, with earnings per share ranging from $2.45 to $2.79.

Responding to a Bernstein analyst's question about unusually strong seasonal expectations, Ilan identified industrial, automotive and data center as the principal contributors to the outlook.

Ilan emphasized that data center demand remains strong without meaningful seasonal fluctuations. Industrial momentum and improving automotive orders provide additional support for the company's near-term revenue expectations.

TXN Industrial Recovery Gains MomentumIndustrial revenues increased more than 40% year over year and approximately 10% sequentially. Ilan noted that the business had surpassed its previous revenue peak from third-quarter 2022.

During discussions with a Wolfe Research analyst, Ilan highlighted increasing semiconductor content across industrial equipment, alongside the company's expanding product portfolio.

Management identified aerospace and defense, energy infrastructure, robotics and test and measurement as important growth areas. Ilan also emphasized that industrial applications offer attractive margins, customer diversity and product longevity.

TI Data Center Growth Expands OpportunitiesData center revenues surged approximately 95% year over year and 20% sequentially, representing roughly 13% of third-quarter revenues.

In response to a Stifel analyst, Ilan explained that growing power density, cooling requirements and efficiency demands are expanding semiconductor opportunities. Texas Instruments supplies approximately 10,000 different generic part numbers into this market.

Ilan also discussed early production ramp-ups of application-specific products at the Sherman facility. Management expects continued opportunities from expanding data center investments and a broader portfolio of semiconductor solutions.

TXN Capacity Investments and Pricing Take FocusManagement highlighted its manufacturing investments as an advantage amid tightening industry capacity. Ilan noted that limited analog capacity additions outside China and Taiwan have strengthened the company's competitive positioning.

Answering a JPMorgan analyst's pricing question, Ilan acknowledged modest price improvements in Analog during the second half of 2026. Customer negotiations for 2027 are underway, with further details expected in January.

The company anticipates 2026 capital expenditures between $2 billion and $3 billion, potentially toward the upper end. Ilan also cited expanding equipment lead times and the rapid ramp of its Malaysian assembly and test facility.

TI Maintains Focus on Cash GenerationManagement maintained a constructive outlook while acknowledging equipment availability and execution requirements associated with capacity expansion.

Knecht reported trailing 12-month free cash flow of $8.4 billion and shareholder returns of $5.8 billion. Ilan reiterated that sustainable free cash flow per share growth remains the company's central long-term objective.

What Zacks Rank and Style Scores Indicate for TXNTexas Instruments currently carries a Zacks Rank #2 (Buy), indicating favorable near-term prospects based on earnings estimate revisions. Its Growth, Momentum and VGM Scores are B, while its Value Score is D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The favorable Growth, Momentum and VGM Scores complement the stock's Zacks Rank, although the weaker Value Score indicates less attractive valuation characteristics. The Zacks Rank can change as analysts revise their earnings estimates following the latest quarterly results.

Key Takeaways TXN's Q3 earnings surged 77% to $2.62, beating estimates by 9.2%, while revenues rose 28% to $6.06B.Analog revenues jumped 32%, while data center sales surged 95% and industrial revenues grew more than 40%.TXN's operating margin expanded to 47.5%, while Q4 revenue guidance ranges from $5.80B to $6.30B.
Texas Instruments Incorporated (TXN - Free Report) reported third-quarter 2026 earnings of $2.62 per share, which increased 77% year over year. The bottom line beat the Zacks Consensus Estimate by 9.2%.

TXN posted revenues of $6.06 billion, which rose 28% from the year-ago quarter. The top line surpassed the consensus mark by 2.2%, driven by broad-based growth across industrial, automotive and data center markets. Data center revenues surged approximately 95% year over year.

TXN's Segment Mix Reflects Broad-Based GrowthTexas Instruments' third-quarter results reflected strong growth across its Analog and Embedded Processing segments, supported by improving demand conditions across key end markets.

Analog revenues came in at $4.91 billion (81.1% of total revenues), which grew 32% from the year-ago quarter. The figure came above our model estimate of $4.79 billion. The segment's operating profit increased 69% year over year to $2.51 billion, benefiting from stronger demand and improving manufacturing utilization.

Embedded Processing revenues totaled $858 million (14.2% of total revenues), reflecting 21% year-over-year growth. The figure surpassed our model estimate of $823.1 million. The segment's operating profit surged 110% to $227 million, supported by improving profitability as the business continued its cyclical recovery.

The Other segment generated $286 million in revenues (4.7% of total revenues), declining 6% from the prior-year quarter. The figure missed our model estimate of $293.9 million. The segment's operating profit increased 106% to $142 million.

Texas Instruments Benefits From End-Market MomentumIndustrial revenues increased more than 40% year over year and approximately 10% sequentially, supported by demand across aerospace and defense, energy infrastructure, test and measurement, and robotics.

Automotive revenues grew at a mid-teens percentage rate year over year and approximately 10% sequentially. Management highlighted improving customer demand, particularly in China and the United States, alongside increasing semiconductor content in hybrid electric and powertrain systems.

Data center revenues increased approximately 20% sequentially, reflecting sustained investments in computing infrastructure. Personal electronics revenues remained approximately flat year over year but increased at an upper-single-digit rate sequentially. Communications equipment revenues grew both year over year and sequentially.

TXN's Margins Expand on Higher RevenuesTexas Instruments' gross profit increased 42.7% year over year to $3.89 billion. Gross margin expanded approximately 680 basis points (bps) year over year to 64.2%, benefiting primarily from higher revenues, alongside favorable pricing, manufacturing loadings and product mix.

Selling, general and administrative expenses increased 4.2% year over year to $476 million. As a percentage of revenues, SG&A expenses contracted approximately 180 bps to 7.9%.

Research and development expenses increased 2.3% year over year to $530 million. As a percentage of revenues, R&D expenses declined approximately 220 bps to 8.8%.

Operating profit surged 72.8% year over year to $2.87 billion. Operating margin expanded approximately 1,240 bps to 47.5%.

Texas Instruments Strengthens Its Manufacturing PositionTexas Instruments continued expanding manufacturing capacity to support rising semiconductor demand. Management highlighted its investments in 300mm wafer manufacturing and assembly and test operations as key competitive advantages.

The company is ramping manufacturing operations in Malaysia while expanding capacity at its Lehi facilities. Management also highlighted improving Analog pricing during the second half of 2026, supported by stronger demand and tighter industry supply conditions.

Capital expenditure plans for 2026 remain between $2 billion and $3 billion, with spending potentially approaching the higher end depending on equipment delivery schedules.

TXN's Cash Generation Supports Shareholder ReturnsAs of Sept. 30, 2026, cash and short-term investments totaled $8.14 billion. Long-term debt stood at $12.91 billion, while the current portion of long-term debt was $650 million.

Texas Instruments generated operating cash flow of $3.42 billion during the quarter, while capital expenditures totaled $463 million. Quarterly free cash flow reached $2.96 billion.

During the quarter, TXN repurchased shares worth $48 million and paid $1.30 billion in dividends. The company also repaid $500 million in debt.

Trailing 12-month free cash flow increased 249% year over year to $8.42 billion. Management announced a 7% dividend increase to $1.52 per share, marking its 23rd consecutive annual dividend increase.

Texas Instruments Provides Q4 2026 GuidanceManagement expects fourth-quarter 2026 revenues between $5.80 billion and $6.30 billion, with a midpoint of $6.05 billion.

Texas Instruments anticipates earnings per share between $2.45 and $2.79. The company expects an effective tax rate of approximately 13% for the fourth quarter and 13-14% for 2027.

Management expects industrial, automotive and data center demand to support fourth-quarter performance. Continued strength in data center infrastructure investments and industrial recovery underpins the company's outlook, while manufacturing capacity expansion remains a key operational priority.

Zacks Rank and Other Stocks to ConsiderCurrently, TXN carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Cisco Systems (CSCO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Analog Devices have rallied 49.7% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $13 per share, up by 4 cents over the past seven days, indicating an increase of 66.9% year over year.

Shares of Applied Materials have jumped 59.1% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.79 per share, unchanged over the past 30 days, indicating a rise of 35.8% year over year.

Cisco Systems shares have surged 39.2% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2027 earnings is pegged at $5.11 per share, unchanged over the past 30 days, indicating an increase of 18% year over year.

Albion Financial Group UT reduced its stake in Texas Instruments Incorporated (NASDAQ:TXN – Free Report) by 19.8% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 24,345 shares of the semiconductor company’s stock after selling 5,992 shares during the period. Albion Financial Group UT’s holdings in Texas Instruments were worth $6,819,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in TXN. Strengthening Families & Communities LLC lifted its holdings in Texas Instruments by 3.1% in the third quarter. Strengthening Families & Communities LLC now owns 5,442 shares of the semiconductor company’s stock worth $1,524,000 after acquiring an additional 165 shares during the last quarter. Sowell Financial Services LLC raised its position in shares of Texas Instruments by 7.3% during the 3rd quarter. Sowell Financial Services LLC now owns 4,950 shares of the semiconductor company’s stock worth $1,386,000 after purchasing an additional 338 shares during the period. Atticus Wealth Management LLC lifted its holdings in shares of Texas Instruments by 5.8% in the 3rd quarter. Atticus Wealth Management LLC now owns 1,829 shares of the semiconductor company’s stock worth $512,000 after purchasing an additional 101 shares during the last quarter. Axecap Investments LLC lifted its holdings in shares of Texas Instruments by 1.4% in the 3rd quarter. Axecap Investments LLC now owns 14,954 shares of the semiconductor company’s stock worth $4,188,000 after purchasing an additional 201 shares during the last quarter. Finally, Quadrant Capital Group LLC lifted its holdings in shares of Texas Instruments by 5.4% in the 3rd quarter. Quadrant Capital Group LLC now owns 21,056 shares of the semiconductor company’s stock worth $6,061,000 after purchasing an additional 1,078 shares during the last quarter. 84.99% of the stock is owned by hedge funds and other institutional investors.

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

Positive Sentiment: Strong quarterly beat: Texas Instruments reported third-quarter revenue of approximately $6.06 billion and earnings per share of $2.62, exceeding Wall Street expectations of roughly $5.94 billion and $2.43, respectively. EPS also rose substantially from $1.48 a year earlier. TI reports third quarter 2026 financial results and shareholder returns Positive Sentiment: Broad-based demand growth: Profit reached $2.43 billion, supported by growth across industrial, automotive and data-center markets. The results suggest that recovering analog-chip demand is beginning to benefit Texas Instruments as heavy factory investment starts to moderate. Texas Instruments Posts Higher Profit, Revenue Positive Sentiment: Sales outlook exceeded expectations: Management’s quarterly sales forecast was reported above analyst estimates, providing an additional catalyst after the earnings beat and potentially reinforcing expectations for continued recovery. Analog chipmaker Texas Instruments sees quarterly sales above estimates Positive Sentiment: Shareholder returns remain supportive: Texas Instruments recently raised its quarterly dividend 7% to $1.52 per share, strengthening the stock’s appeal to income-focused investors. Neutral Sentiment: Valuation remains demanding: Despite improving results, TXN trades at more than 40 times trailing earnings, leaving the stock sensitive to any disappointment in future growth, capacity utilization or guidance. Negative Sentiment: Insider selling is a cautionary signal: Recent disclosed activity showed numerous executives selling shares and no reported insider purchases over the past six months. These transactions may reflect compensation or diversification, but they could temper enthusiasm at the current valuation. Insider Activity at Texas Instruments In other Texas Instruments news, VP Tsedeniya Abraham sold 7,000 shares of Texas Instruments stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the transaction, the vice president owned 23,181 shares of the company’s stock, valued at $6,134,388.03. The trade was a 23.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.60% of the stock is currently owned by company insiders. Wall Street Analysts Forecast Growth Several brokerages have recently issued reports on TXN. TD Cowen reduced their price target on shares of Texas Instruments from $340.00 to $330.00 and set a “buy” rating for the company in a report on Monday. Cantor Fitzgerald reaffirmed a “neutral” rating on shares of Texas Instruments in a report on Tuesday. JPMorgan Chase & Co. increased their price objective on shares of Texas Instruments from $280.00 to $340.00 and gave the stock an “overweight” rating in a report on Thursday, July 23rd. Susquehanna lifted their price objective on shares of Texas Instruments from $300.00 to $340.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Finally, Robert W. Baird boosted their target price on shares of Texas Instruments from $300.00 to $385.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. Sixteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Texas Instruments currently has a consensus rating of “Hold” and a consensus price target of $302.88.

Get Our Latest Analysis on Texas Instruments

Texas Instruments Trading Up 2.5% Shares of TXN stock opened at $284.65 on Thursday. The stock has a 50-day simple moving average of $271.76 and a 200 day simple moving average of $278.84. Texas Instruments Incorporated has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The stock has a market capitalization of $259.96 billion, a P/E ratio of 42.28, a P/E/G ratio of 1.55 and a beta of 1.35. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72.

Texas Instruments (NASDAQ:TXN – Get Free Report) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.40 by $0.22. The business had revenue of $6.05 billion for the quarter, compared to the consensus estimate of $5.94 billion. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The business’s revenue for the quarter was up 27.7% on a year-over-year basis. During the same period in the previous year, the firm earned $1.48 EPS. On average, sell-side analysts expect that Texas Instruments Incorporated will post 8.49 earnings per share for the current fiscal year.

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

(Free Report)

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.

Further Reading Five stocks we like better than Texas Instruments GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Intercepting Growth: Karman Secures $218M Lockheed Martin Deal Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chip Stocks Have Pulled Back—Here’s How 3 Semiconductor ETFs Stack Up for Investors Want to see what other hedge funds are holding TXN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Texas Instruments Incorporated (NASDAQ:TXN – Free Report).

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The Bluetooth®-enabled vehicle translates mathematical formulas into physical motion using the TI-84 Evo graphing calculator DALLAS, Oct. 22, 2026 /PRNewswire/ -- Texas Instruments (TI) today announced the launch of the TI-Rover BT, a Bluetooth®-enabled robotic vehicle that transforms the classroom floor into a living coordinate plane. By converting algebraic equations into tangible motion, the vehicle empowers students to move beyond the screen and interact with abstract concepts in real time.

Revenue: $6.1 billion, up 11% sequentially and 28% year over year.Analog Revenue: Grew 32% year over year.Embedded Processing Revenue: Grew 21% year over year.O

Texas Instruments just guided above what Wall Street expected, and the reason involves a corner of AI spending most investors overlook entirely. Whether the stock can hold its premium valuation depends on one market that took four years to recover.

The low end of Texas Instruments’ (NASDAQ:TXN | TXN Price Prediction) fourth-quarter earnings guidance is above what analysts expected. The company reported third-quarter results after the close on October 21, 2026. Texas Instruments forecast fourth-quarter revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79. For the fourth quarter, analysts expected revenue of $5.75 billion and EPS of $2.27.

The shares closed at $284.65, up 2.47% in the regular session. At 7:59 PM ET, they traded at $288.10 after hours, up 1.21%. That is a modest move for a stock already up 66.84% in 2026.

Valuation is now the central issue for TI. Its analog chips now benefit from AI data center spending, but data centers are still a small part of the business. Most of the growth is coming from the cyclical recovery in industrial and automotive, and the stock may already price that in.

A Guide Above Consensus Matters More Than the Beat
Revenue was $6.055 billion, up 28% from a year ago and 11% from the second quarter. Operating profit rose 73% to $2.874 billion, and net income rose 78% to $2.425 billion.

EPS rose 77% to $2.62. That figure included a 1-cent reduction not in TI’s original guidance. For the third quarter, analysts had expected EPS of $2.42 and revenue of $5.92 billion.

The guide carries more weight than the beat because it shows the recovery keeps going into year-end, but the ranges are wide, so the midpoints matter less than the low ends.

How AI Spending Reaches an Analog Chipmaker
Haviv Ilan, TI’s CEO, said data center revenue rose about 95% from a year ago and about 20% from the prior quarter. It still makes up only about 13% of revenue.

Analog and embedded chips handle power conversion, monitoring, and cooling control around servers and racks. When AI racks draw more power and pack it more tightly, each one needs more of these parts. Ilan described “continuing demand, actually growing demand.” TI did not name any customers, but the power, cooling and networking suppliers riding the same data center expansion are the subject of a free report we put together on seven AI infrastructure names that aren’t chipmakers.

Industrial and Automotive Drive Most of the Growth
Texas Instruments said industrial revenue, its largest market, rose more than 40% year over year and about 10% sequentially. Haviv Ilan said, “This is the first time we created a new peak in industrial after four years.”

Texas Instruments said automotive grew in the mid-teens. On automotive customers specifically, Ilan said, “I don’t see any inventory build-up. On the contrary, I wish they had a little bit more.” Personal electronics was about flat. Analog revenue rose 32% to $4.91 billion, and Embedded Processing rose 21% to $858 million.

Inventory Cushion Meets a Premium Price
CFO Julie Knecht reported inventory of $4.7 billion, up $67 million in the quarter, or 194 days of supply. That chip inventory lets TI ship quickly while customers run low. It would tie up cash if demand stalls.

At a $259.96 billion market value, the stock trades at 37 times trailing earnings and 28 times forward earnings. That is a premium to a typical cyclical chipmaker, even with the shares about 15% below their 52-week high of $334.03.

What Could Break the TXN Recovery Story
The guide is above consensus and growth is spread across TI’s three main markets, which supports earnings that could justify the forward multiple. Industrial demand is cyclical, and after its second-quarter beat, the stock fell 9.14% over the following 30 days.

Data center is too small to carry the stock if industrial demand turns down. If reported fourth-quarter revenue comes in below the $5.80 billion low end of Texas Instruments’ forecast, or the January outlook shows 2027 pricing slipping, the recovery story would weaken considerably.

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Texas Instruments (TXN - Free Report) came out with quarterly earnings of $2.62 per share, beating the Zacks Consensus Estimate of $2.4 per share. This compares to earnings of $1.48 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.17%. A quarter ago, it was expected that this chipmaker would post earnings of $1.91 per share when it actually produced earnings of $2.14, delivering a surprise of +12.04%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Texas Instruments, which belongs to the Zacks Semiconductor - General industry, posted revenues of $6.06 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.17%. This compares to year-ago revenues of $4.74 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Texas Instruments shares have added about 60.1% since the beginning of the year versus the S&P 500's gain of 12.7%.

What's Next for Texas Instruments?While Texas Instruments has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Texas Instruments was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.21 on $5.58 billion in revenues for the coming quarter and $8.49 on $21.81 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - General is currently in the top 10% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Intel (INTC - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.

This world's largest chipmaker is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +69.6%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level.

Intel's revenues are expected to be $16.44 billion, up 20.4% from the year-ago quarter.

A Silent Winner: Texas Instruments Anchors the AI SupercycleTexas Instruments NASDAQ: TXN reported third-quarter 2026 revenue of $6.1 billion, up 11% sequentially and 28% from a year earlier, as broad demand growth across end markets and regions supported results. The company said semiconductor content growth and a cyclical recovery are occurring simultaneously, while its manufacturing investments have positioned it to expand output.

Chief Executive Officer Haviv Ilan said Analog revenue increased 32% year over year, while Embedded Processing revenue rose 21%. Revenue in the company’s other segment declined 6% from the prior-year period.

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End-market growth broadens Old Dogs, New Tech: 3 Legacy Stocks Powering the AI BoomIndustrial revenue increased more than 40% from a year earlier and about 10% sequentially. Automotive revenue rose in the mid-teens year over year and approximately 10% from the second quarter. Data center revenue climbed about 95% year over year and 20% sequentially, while personal electronics was roughly flat year over year but increased by upper-single digits sequentially.

Ilan said the company expects industrial, automotive and data center demand to be the principal drivers of its fourth-quarter outlook. He noted that data center revenue represented about 13% of third-quarter revenue and said the market’s growth has not been influenced by typical seasonal patterns.

These 3 Most-Upgraded Stocks Have Almost Nothing to Do With AIWithin industrial, Ilan said third-quarter revenue exceeded the segment’s prior peak reached in the third quarter of 2022. He attributed the growth to higher semiconductor content in customer systems, an expanded company portfolio and demand in areas including aerospace and defense, energy infrastructure, test and measurement, robotics and industrial automation.

Management also described data center as a broad opportunity spanning power, telemetry, cooling and efficiency applications. Ilan said Texas Instruments sells about 10,000 generic part numbers into the data center market, with that number increasing each quarter. The company is investing in both broad foundational-chip offerings and more application-specific products, he added.

Profitability and cash generation Gross profit was $3.9 billion, or 64% of revenue, with gross margin rising 280 basis points sequentially. Chief Financial Officer Julie Knecht said the improvement was driven primarily by higher revenue, with additional benefits from pricing, factory loadings and product and end-market mix.

Operating expenses totaled $1 billion during the quarter. Operating profit reached $2.9 billion, or 47% of revenue, and was up 73% from the year-ago period. Net income was $2.4 billion, or $2.62 per share. Earnings per share included a one-cent reduction related to discrete tax items that had not been included in the company’s original guidance.

Cash flow from operations: $3.4 billion in the quarter Trailing-12-month cash flow from operations: $9.9 billion Trailing-12-month free cash flow: $8.4 billion, including $1.6 billion of CHIPS Act incentives Third-quarter capital expenditures: $463 million Cash and short-term investments at quarter-end: $8.1 billion The company paid $1.3 billion in dividends during the quarter and increased its quarterly dividend 7% to $1.52 per share in September, marking its 23rd consecutive annual dividend increase. Texas Instruments returned $5.8 billion to shareholders over the past 12 months, according to Knecht.

The company repaid $500 million of debt during the quarter. Total debt outstanding was $13.65 billion, carrying a weighted average coupon of 4.11%. Inventory ended the quarter at $4.7 billion, up $67 million sequentially, while inventory days declined by two days to 194.

Capacity, pricing and supply conditions Management said demand strength has put some upward pressure on lead times, though Ilan said Texas Instruments remains competitively positioned to serve customers because of its inventory and manufacturing capacity investments. The company is ramping factories and plans to continue adding equipment to available clean-room space as demand requires.

Ilan said the company saw some pricing improvement, primarily in Analog, during the second half of 2026 after pricing was flat year over year in the first half. He said Texas Instruments is conducting annual pricing discussions with customers for 2027 and expects to provide more detail with its January results and outlook.

In automotive, Ilan said customer demand strengthened in the third quarter, particularly in China and the United States. He said customers had not maintained substantial inventory levels and Texas Instruments has been working to support production ramps. Hybrid-electric and powertrain systems grew about twice as fast as the overall automotive business, according to management.

The company also said it is expanding internal assembly and test capacity, including at a new site in Malaysia. Ilan said equipment delivery timing can affect near-term capital spending, but characterized the situation as an execution issue rather than a structural capacity constraint.

Fourth-quarter outlook For the fourth quarter, Texas Instruments projected revenue of $5.8 billion to $6.3 billion and earnings per share of $2.45 to $2.79. The company expects its fourth-quarter effective tax rate to be about 13%, and forecast a 2027 tax rate of roughly 13% to 14%.

Management expects fourth-quarter operating expenses to be flat to slightly higher sequentially. Knecht said the company continues to use a long-term model of 75% to 85% fall-through excluding depreciation when assessing margin performance over longer periods.

For 2026, Ilan said capital expenditures are expected to remain within the company’s previously stated $2 billion to $3 billion range, potentially toward the high end if equipment deliveries proceed as planned. He said Texas Instruments will provide additional detail on 2027 capital spending during its February capital-management update.

About Texas Instruments (NASDAQ:TXN)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Conference call at 3:30 p.m. Central time today on ti.com/ir 

, /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $6.06 billion, net income of $2.43 billion and earnings per share of $2.62. Earnings per share included a 1-cent reduction that was not in the company's original guidance.

Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:

"Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center. "Our cash flow from operations of $9.9 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. Free cash flow for the same period was $8.4 billion. "Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.8 billion to owners. "TI's fourth quarter outlook is for revenue in the range of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79." Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.

Earnings summary

(In millions, except per-share amounts)

Q3 2026

Q3 2025

Change

Revenue

$

6,055

$

4,742

28 %

Operating profit

$

2,874

$

1,663

73 %

Net income

$

2,425

$

1,364

78 %

Earnings per share

$

2.62

$

1.48

77 %

Cash generation

Trailing 12 Months

(In millions)

Q3 2026

Q3 2026

Q3 2025

Change

Cash flow from operations

$

3,419

$

9,896

$

6,897

43 %

Free cash flow

$

2,956

$

8,422

$

2,415

249 %

Free cash flow % of revenue

40.6 %

14.0 %

Cash return

Trailing 12 Months

(In millions)

Q3 2026

Q3 2026

Q3 2025

Change

Dividends paid

$

1,298

$

5,174

$

4,949

5 %

Stock repurchases

$

48

$

636

$

1,611

(61) %

Total cash returned

$

1,346

$

5,810

$

6,560

(11) %

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

For Three Months Ended

September 30,

(In millions, except per-share amounts)

2026

2025

Revenue

$

6,055

$

4,742

Cost of revenue (COR)

2,168

2,019

Gross profit

3,887

2,723

Research and development (R&D)

530

518

Selling, general and administrative (SG&A)

476

457

Acquisition charges

7

—

Restructuring charges/other

—

85

Operating profit

2,874

1,663

Other income (expense), net (OI&E)

72

62

Interest and debt expense

141

141

Income before income taxes

2,805

1,584

Provision for income taxes

380

220

Net income

$

2,425

$

1,364

Diluted earnings per common share

$

2.62

$

1.48

Average shares outstanding:

Basic

914

909

Diluted

921

914

Cash dividends declared per common share

$

1.42

$

1.36

Supplemental Information

(Quarterly, except as noted)

Provision for income taxes is based on the following:

Operating taxes (calculated using the estimated annual effective tax rate)

$

390

$

249

Discrete tax items

(10)

(29)

Provision for income taxes (effective taxes)

$

380

$

220

A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted
EPS is calculated using the following:

Net income

$

2,425

$

1,364

Income allocated to RSUs

(14)

(8)

Income allocated to common stock for diluted EPS

$

2,411

$

1,356

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheets

September 30,

(In millions, except par value)

2026

2025

Assets

Current assets:

Cash and cash equivalents

$

4,211

$

3,311

Short-term investments

3,931

1,875

Accounts receivable, net of allowances of ($27) and ($21)

2,620

2,062

Raw materials

497

431

Work in process

2,482

2,460

Finished goods

1,693

1,938

Inventories

4,672

4,829

Prepaid expenses and other current assets

1,446

1,799

Total current assets

16,880

13,876

Property, plant and equipment at cost

18,072

17,314

Accumulated depreciation

(6,239)

(4,966)

Property, plant and equipment

11,833

12,348

Goodwill

4,330

4,362

Deferred tax assets

1,054

1,089

Capitalized software licenses

301

237

Overfunded retirement plans

320

251

Other long-term assets

2,121

2,841

Total assets

$

36,839

$

35,004

Liabilities and stockholders' equity

Current liabilities:

Current portion of long-term debt

$

650

$

500

Accounts payable

837

779

Accrued compensation

675

724

Income taxes payable

60

79

Accrued expenses and other liabilities

795

1,036

Total current liabilities

3,017

3,118

Long-term debt

12,905

13,546

Underfunded retirement plans

118

125

Deferred tax liabilities

62

60

Other long-term liabilities

1,552

1,528

Total liabilities

17,654

18,377

Stockholders' equity:

Preferred stock, $25 par value. Shares authorized – 10; none issued

—

—

Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741

1,741

1,741

Paid-in capital

5,202

4,410

Retained earnings

54,282

52,369

Treasury common stock at cost

Shares: September 30, 2026 – 827; September 30, 2025 – 832

(41,955)

(41,744)

Accumulated other comprehensive income (loss), net of taxes (AOCI)

(85)

(149)

Total stockholders' equity

19,185

16,627

Total liabilities and stockholders' equity

$

36,839

$

35,004

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For Three Months Ended

September 30,

(In millions)

2026

2025

Cash flows from operating activities

Net income

$

2,425

$

1,364

Adjustments to net income:

Depreciation

555

497

Amortization of capitalized software

21

20

Stock compensation

95

93

Deferred taxes

(26)

3

Increase (decrease) from changes in:

Accounts receivable

(100)

(128)

Inventories

(67)

(17)

Prepaid expenses and other current assets

16

18

Accounts payable and accrued expenses

75

86

Accrued compensation

135

121

Income taxes payable

319

107

Changes in funded status of retirement plans

(6)

13

Other

(23)

13

Cash flows from operating activities

3,419

2,190

Cash flows from investing activities

Capital expenditures

(463)

(1,197)

Proceeds from CHIPS Act incentives

—

75

Proceeds from asset sales

—

1

Purchases of short-term investments

(1,969)

(805)

Proceeds from short-term investments

1,399

1,260

Other

46

(15)

Cash flows from investing activities

(987)

(681)

Cash flows from financing activities

Repayment of debt

(500)

—

Dividends paid

(1,298)

(1,236)

Stock repurchases

(48)

(119)

Proceeds from common stock transactions

16

125

Other

(51)

(12)

Cash flows from financing activities

(1,881)

(1,242)

Net change in cash and cash equivalents

551

267

Cash and cash equivalents at beginning of period

3,660

3,044

Cash and cash equivalents at end of period

$

4,211

$

3,311

Supplemental cash flow information

Investment tax credit (ITC) used to reduce income taxes payable

$

79

$

43

Proceeds from CHIPS Act incentives

—

75

Total cash benefit related to the CHIPS Act

$

79

$

118

Segment results

(In millions)

Q3 2026

Q3 2025

Change

Analog:

Revenue

$

4,911

$

3,729

32 %

Operating profit

$

2,505

$

1,486

69 %

Embedded Processing:

Revenue

$

858

$

709

21 %

Operating profit

$

227

$

108

110 %

Other:

Revenue

$

286

$

304

(6) %

Operating profit *

$

142

$

69

106 %

* Includes Acquisition charges and Restructuring charges/other

Non-GAAP financial information

This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.

We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.

Reconciliation to the most directly comparable GAAP measures is provided in the table below.

For Three
Months
Ended

September 30,

For 12

Months

Ended

September 30,

(In millions)

2026

2026

2025

Change

Cash flow from operations (GAAP) *

$

3,419

$

9,896

$

6,897

43 %

Capital expenditures

(463)

(2,578)

(4,817)

Proceeds from CHIPS Act incentives

—

1,104

335

Free cash flow (non-GAAP)

$

2,956

$

8,422

$

2,415

249 %

Revenue

$

20,766

$

17,266

Cash flow from operations as a percentage of revenue (GAAP)

47.7 %

39.9 %

Free cash flow as a percentage of revenue (non-GAAP)

40.6 %

14.0 %

* Includes cash benefits of $79 million, $469 million and $302 million from the CHIPS Act ITC used to reduce income taxes payable for the
three months ended September 30, 2026, and the twelve months ended September 30, 2026 and 2025, respectively.

This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items.

Notice regarding forward-looking statements

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:

Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies; Our ability to compete in products and prices in an intensely competitive industry; Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts; Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments; Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties; Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings; Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity; Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology; Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession; Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts; Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors; Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment; Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability; Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets; Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims; Our ability to make principal and interest payments on our debt when due; Instability in the global credit and financial markets; and Impairments of our non-financial assets. For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of our most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.

TXN-G

SOURCE Texas Instruments Incorporated

Texas Instruments (TXN.O) forecast fourth-quarter revenue above Wall Street estimates on Wednesday, a sign of ​recovery in industrial chip demand and growing ‌momentum for its AI data-center chips.

Unlike Nvidia (NVDA.O), which makes high-performance AI processors, Dallas, Texas-based TI produces analog chips that ​manage power and convert real-world inputs such ​as sound, light and temperature into digital ⁠signals for other semiconductors to process

The analog chipmaker ​expects fourth-quarter revenue between $5.80 billion and $6.30 billion, above ​analysts' average estimate of $5.73 billion, according to data compiled by LSEG.

Quarterly profit is expected to be between $2.45 and $2.79 ​per share

Texas Instruments, one of the first major ​chipmakers to post quarterly results, is widely considered a bellwether ‌for ⁠the broader electronics and semiconductor industries

Its analog and embedded chips are used in smartphones, laptops, cars as well as factory equipment

TI's third-quarter revenue ​rose 28% to $6.06 ​billion from ⁠the same period last year, topping estimates of $5.92 billion. Quarterly profit ​rose 77% to $2.62 per share.

"Our cash flow ​from ⁠operations of $9.9 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," CEO Haviv Ilan said

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VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Texas Instruments (TXN - Free Report) Headquartered in Dallas, TX, Texas Instruments Incorporated is an original equipment manufacturer of analog, mixed-signal and digital signal processing (DSP) integrated circuits.

TXN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. TXN has a Momentum Style Score of B, and shares are up 2.4% over the past four weeks.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $8.49 per share. TXN also boasts an average earnings surprise of +8.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TXN should be on investors' short list.

Texas Instruments Incorporated (NASDAQ:TXN) will release earnings for its third quarter after the closing bell on Wednesday, Oct. 21.

Management's sales guidance sets an approximately 8% sequential growth hurdle for the October 21 report. Summary

The revenue midpoint would lift quarterly sales by roughly $437 million from the second quarter.

Texas Instruments TXN needs roughly $437 million in additional quarterly sales just to hit the midpoint of its own guidance. That is the hurdle. Shares traded at $279.96, up approximately 1.38%, around 12:35 p.m. ET on October 20. Ahead of earnings, Wells Fargo cut its price target to $300 from $310 while keeping an Equal Weight rating. The question is whether stronger demand can deliver the growth management has already promised.

TI's second-quarter release put third-quarter revenue guidance at $5.65 billion to $6.15 billion. The $5.90 billion midpoint requires an approximately 8% increase from second-quarter revenue of $5.463 billion, with management pointing to industrial, data-center and automotive demand. Results scheduled for October 21 will turn that forecast into a scorecard. The valuation picture adds pressure: at $279.96, shares sit 16.78% above the displayed GF Value estimate of $239.74. That model is no verdict, but it raises the stakes for execution.

My test is simple: clear the sales hurdle, then show why orders can keep growing. AI infrastructure spending matters when it translates into sustained component demand, supported by a broader industrial recovery. Watch revenue against the $5.90 billion midpoint, the next quarter's guidance and the strength of demand across end markets. Hitting the current target would show TI delivered. A stronger outlook, backed by durable orders, would give investors a reason to expect more.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Most income investors write off chipmakers the moment they see the yield, but a handful of semiconductor companies have been quietly compounding their payouts through recessions, factory buildouts, and market downturns in ways that reframe what a dividend stock can…

Income investors usually skip tech because the yields look thin. That approach leaves out a small group of chipmakers whose payouts compound year after year, funded by some of the largest cash flows in the market. Texas Instruments (NASDAQ:TXN | TXN Price Prediction) just raised its quarterly dividend to $1.52 per share. Analog Devices (NASDAQ:ADI) and Qualcomm (NASDAQ:QCOM) have also raised their payouts this year. The starting yields are low. What you’re buying is the growth, backed by recovering demand from factories, cars and data centers.

Texas Instruments: Cash Flow Is Catching Up to a Fresh Raise
Texas Instruments makes analog chips, which manage power and turn real-world signals like heat, sound and motion into data. It also makes embedded processors, the small computing brains inside cars and factory equipment. Analog revenue came to $4.365B last quarter, up 26%, while Embedded Processing brought in $788M, up 16%.

At $274.49, the stock yields 2.01%. The new $1.52 quarterly dividend replaces the prior $1.42, a raise of about 7.0%.

Dividend Safety
Measured against earnings, the payout looks extended. Dividends per share of $5.62 against trailing EPS of $6.57 work out to a payout ratio of about 86%. Free cash flow gives the better picture. Trailing 12-month free cash flow reached $6.5 billion, while TI returned $5.8 billion to owners. In the latest quarter alone, free cash flow of $2.738B easily covered $1.3 billion in dividends. Management repeated its “commitment to return all free cash flow to shareholders.” On the balance sheet, TI holds $7 billion in cash and short-term investments against $14 billion of debt at a weighted average coupon of 4%.

The track record is the best part of the case. TI’s dividend history shows a higher payout every year from 2005 through this year. The company rose through the financial crisis, from $0.10 to $0.11 in 2008 and from $0.11 to $0.12 in 2009. More recently, trailing free cash flow fell to $1.8 billion during the heavy 300mm factory expansion, and TI still raised the payout from $1.30 to $1.36, then to $1.42.

Bull Case
The spending cycle is over, and the cash is coming in. Quarterly capex dropped to $514M (-60.61% YoY), and free cash flow rose 393.33%. Data center revenue doubled year-on-year, and the CEO said, “We have done the hard work ahead of time, and we have capacity to build into.” Third-quarter revenue guidance of $5.65B to $6.15B points to further gains.

Risk to Watch
TI still expects to close its Silicon Labs (NASDAQ:SLAB) deal, funded with cash on hand and debt. That adds leverage at a time when the dividend already takes up most of earnings.

Analog Devices: Double-Digit Raises From Record Free Cash Flow
Analog Devices makes mixed-signal chips. These parts connect the physical world to digital systems through data conversion, signal processing, and power management. Industrial customers produced $1.972B of revenue last quarter (+53%). Communications, now driven by AI data centers, reached $655M (+84%).

At $395.65, ADI yields 1.06%. The quarterly dividend stands at $1.10, up from $0.99, a 11.1% increase. That is the largest of the three.

Dividend Safety
ADI pays out about 51% of GAAP earnings, based on $4.29 in dividends per share against EPS of $8.42. Trailing free cash flow hit a record $4.9 billion, or 36% of revenue. The dividend is written into policy: management targets returning 100% of free cash flow over the long term, “aiming to use 40 to 60% to support our annual dividend and the remainder for share count reduction.” Net leverage stands at 0.9, even after ADI paid $1.5 billion in cash for Empower Semiconductor.

ADI’s annual dividend rate has grown every year since 2010, climbing from $0.22 that year to $1.10 now. In 2009, during the financial crisis, ADI kept the quarterly payout at $0.20 instead of cutting it, then resumed raises the following year.

Bull Case
Third-quarter revenue of $4.022B rose 39.63%. Data center sales grew more than 100% year over year in both optical and power. Guidance calls for $4.3B in fourth-quarter revenue and an adjusted operating margin near 52.0%. Since the dividend is tied to free cash flow, faster cash growth supports more large raises. The stock trades at 23 times forward earnings.

Risk to Watch
ADI’s 1.06% yield is the lowest of the group, and the trailing P/E sits at 47. Buyers who need income now will collect very little at first and will need several years of raises before the yield on their cost gets meaningful.

Qualcomm: Lowest Payout Ratio and Cheapest Valuation of the Group
Qualcomm makes money two ways. Its chip business (QCT) sells processors and modems for phones, cars, and connected devices. Its licensing arm (QTL) collects royalties on patents behind the 5G and 4G wireless standards. Last quarter, QCT brought in $8.504B and QTL brought in $1.278B.

Qualcomm yields 2.07%, with shares at $177.71. The quarterly dividend is $0.92, up from $0.89, a 3.4% increase.

Dividend Safety
This is the best-covered dividend of the three. Qualcomm pays out about 42% of earnings, based on $3.59 in dividends per share against EPS of $8.64. Its 6.98% free cash flow yield is far above the dividend yield. Last quarter, Qualcomm paid $937 million in dividends and still had room for $1.4 billion in buybacks. Leverage is light: net debt/EBITDA is 0.611, and interest coverage is 18.6x.

Qualcomm has raised its dividend in every calendar year since 2020. Its payout has grown from $0.05 in 2003 to today’s level. It rose through the financial crisis, lifting the payout to $0.16 in early 2008 and to $0.17 in late 2009. The only gap came in 2019, when the dividend stayed at $0.62. It was not cut, and increases resumed in 2020.

Bull Case
Qualcomm is moving beyond phones. Automotive revenue rose 61% to $1.588B, its 23rd straight quarter of double-digit growth. Management targets $40 billion in non-handset chip revenue by fiscal 2029, including more than $15 billion from data centers. At 20 times forward earnings, income buyers pay the least for this dividend stream.

Risk to Watch
Phones are still the core business, and that business is contracting. Handset revenue fell 20% to $5.086B, and the company has highlighted customer vertical integration as a risk. Wall Street is conservative: analysts rate the stock 23 holds against 9 buys.

Three Ways to Collect Growing Chip Income
Each of these chipmakers kept its dividend going through the 2008 to 2009 crisis, and each has raised again this year. Texas Instruments offers the longest unbroken record of raises and a payout policy now backed by the best free cash flow. Analog Devices delivers the biggest raises under a dividend policy tied directly to free cash flow. Qualcomm pairs the highest starting yield of the three with the lowest payout ratio, which leaves the most room for future increases.

Contact [email protected] for any questions or corrections.

Banque Pictet & Cie SA trimmed its holdings in shares of Texas Instruments Incorporated (NASDAQ:TXN – Free Report) by 44.2% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 844,012 shares of the semiconductor company’s stock after selling 669,453 shares during the period. Texas Instruments comprises approximately 1.6% of Banque Pictet & Cie SA’s holdings, making the stock its 13th biggest holding. Banque Pictet & Cie SA owned 0.09% of Texas Instruments worth $236,399,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Texas Instruments in the second quarter valued at approximately $24,607,313,000. Bank of New York Mellon Corp purchased a new stake in Texas Instruments during the second quarter worth approximately $4,488,666,000. Bank of America Corp DE purchased a new stake in Texas Instruments during the second quarter worth approximately $3,700,842,000. Van ECK Associates Corp boosted its position in Texas Instruments by 1.5% during the 2nd quarter. Van ECK Associates Corp now owns 12,149,167 shares of the semiconductor company’s stock worth $3,621,302,000 after purchasing an additional 177,511 shares during the period. Finally, Invesco Ltd. increased its holdings in Texas Instruments by 10.6% in the 4th quarter. Invesco Ltd. now owns 18,184,514 shares of the semiconductor company’s stock valued at $3,154,831,000 after purchasing an additional 1,749,513 shares in the last quarter. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Texas Instruments In other Texas Instruments news, VP Tsedeniya Abraham sold 7,000 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the completion of the sale, the vice president owned 23,181 shares of the company’s stock, valued at $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.60% of the stock is owned by corporate insiders.

Texas Instruments Stock Down 0.9% NASDAQ TXN opened at $276.48 on Friday. Texas Instruments Incorporated has a 12 month low of $152.73 and a 12 month high of $334.03. The company has a market capitalization of $252.50 billion, a P/E ratio of 42.48, a PEG ratio of 1.56 and a beta of 1.35. The company’s 50 day simple moving average is $271.75 and its 200 day simple moving average is $276.42. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. Texas Instruments (NASDAQ:TXN – Get Free Report) last announced its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 EPS for the quarter, topping the consensus estimate of $1.91 by $0.23. The company had revenue of $5.46 billion during the quarter, compared to analysts’ expectations of $5.26 billion. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The business’s revenue for the quarter was up 22.8% on a year-over-year basis. During the same period last year, the company posted $1.41 earnings per share. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. Equities research analysts expect that Texas Instruments Incorporated will post 8.46 earnings per share for the current fiscal year.

Texas Instruments Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be given a $1.52 dividend. This is an increase from Texas Instruments’s previous quarterly dividend of $1.42. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, October 30th. Texas Instruments’s payout ratio is presently 86.45%.

Analyst Upgrades and Downgrades A number of research firms have recently commented on TXN. Morgan Stanley boosted their target price on shares of Texas Instruments from $230.00 to $255.00 and gave the stock an “underweight” rating in a research report on Thursday, July 23rd. Zacks Research lowered Texas Instruments from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 21st. The Goldman Sachs Group boosted their price target on Texas Instruments from $200.00 to $225.00 and gave the stock a “sell” rating in a research note on Thursday, July 23rd. Truist Financial upped their target price on Texas Instruments from $278.00 to $300.00 and gave the company a “hold” rating in a research report on Thursday, July 23rd. Finally, Wall Street Zen raised shares of Texas Instruments from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Sixteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $304.26.

Read Our Latest Research Report on TXN

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

Positive Sentiment: Texas Instruments’ history of exceeding earnings expectations, combined with favorable current earnings-estimate trends, has increased the possibility of another quarterly beat. Investors are also watching operating metrics beyond revenue and earnings per share for evidence of sustained demand. Will Texas Instruments Beat Estimates Again in Its Next Earnings Report? Positive Sentiment: Analysts expect strength in Texas Instruments’ analog and embedded-processing businesses to support third-quarter results, reflecting demand from industrial, automotive and data-center markets. TXN to Report Q3 Earnings: Should You Buy, Hold or Sell the Stock? Positive Sentiment: The board declared a fourth-quarter cash dividend of $1.52 per share, payable Nov. 10 to shareholders of record Oct. 30. The announcement reinforces TXN’s shareholder-return profile and may provide some support for income-focused investors. Texas Instruments Board Declares Fourth Quarter 2026 Quarterly Dividend Positive Sentiment: Exchange-traded funds purchased approximately $113.2 million of TXN stock on Oct. 13, indicating institutional or index-related buying interest. ETFs Bought $113.2 Million of Texas Instruments Neutral Sentiment: Wall Street’s third-quarter preview emphasizes key indicators such as segment performance, margins and demand trends. These metrics could be more important for TXN’s valuation than simply meeting consensus revenue and EPS estimates. Texas Instruments Q3 Earnings Key Metrics Negative Sentiment: Geopolitical tensions remain a risk to semiconductor supply chains and international demand. In addition, TXN’s elevated valuation leaves less room for disappointment if its earnings outlook or margins fall short of expectations. TXN Q3 Earnings Investment Outlook (Free Report)

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.

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Analysts on Wall Street project that Texas Instruments (TXN - Free Report) will announce quarterly earnings of $2.38 per share in its forthcoming report, representing an increase of 60.8% year over year. Revenues are projected to reach $5.91 billion, increasing 24.7% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Given this perspective, it's time to examine the average forecasts of specific Texas Instruments metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts expect 'Revenue- Analog' to come in at $4.76 billion. The estimate indicates a year-over-year change of +27.7%.

The consensus estimate for 'Revenue- Embedded Processing' stands at $836.25 million. The estimate points to a change of +18% from the year-ago quarter.

Analysts predict that the 'Revenue- Other' will reach $315.39 million. The estimate suggests a change of +3.8% year over year.

Analysts' assessment points toward 'Operating Profit- Analog' reaching $2.18 billion. Compared to the present estimate, the company reported $1.49 billion in the same quarter last year.

Analysts forecast 'Operating Profit- Embedded Processing' to reach $181.08 million. Compared to the present estimate, the company reported $108.00 million in the same quarter last year.

View all Key Company Metrics for Texas Instruments here>>>

Texas Instruments shares have witnessed a change of +8.1% in the past month, in contrast to the Zacks S&P 500 composite's +2.4% move. With a Zacks Rank #2 (Buy), TXN is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Texas Instruments gears up for Q3 earnings, with strong analog and embedded chip demand fueling growth, while geopolitical tensions pose risks.

NorthCrest Asset Manangement LLC grew its position in Texas Instruments Incorporated (NASDAQ:TXN – Free Report) by 19.1% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 15,350 shares of the semiconductor company’s stock after acquiring an additional 2,460 shares during the period. NorthCrest Asset Manangement LLC’s holdings in Texas Instruments were worth $4,424,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of TXN. BlackRock Inc. acquired a new stake in shares of Texas Instruments during the 2nd quarter valued at about $24,607,313,000. Bank of New York Mellon Corp acquired a new position in Texas Instruments in the 2nd quarter worth about $4,488,666,000. Bank of America Corp DE acquired a new position in Texas Instruments in the 2nd quarter worth about $3,700,842,000. Van ECK Associates Corp boosted its position in Texas Instruments by 1.5% during the second quarter. Van ECK Associates Corp now owns 12,149,167 shares of the semiconductor company’s stock worth $3,621,302,000 after purchasing an additional 177,511 shares in the last quarter. Finally, Invesco Ltd. boosted its position in Texas Instruments by 10.6% during the fourth quarter. Invesco Ltd. now owns 18,184,514 shares of the semiconductor company’s stock worth $3,154,831,000 after purchasing an additional 1,749,513 shares in the last quarter. 84.99% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes Several brokerages have commented on TXN. Mizuho raised their price objective on Texas Instruments from $300.00 to $305.00 and gave the company a “neutral” rating in a report on Thursday, July 23rd. Zacks Research downgraded Texas Instruments from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 21st. Robert W. Baird upped their target price on Texas Instruments from $300.00 to $385.00 and gave the stock an “outperform” rating in a research note on Thursday, July 23rd. KeyCorp increased their target price on Texas Instruments from $390.00 to $400.00 and gave the company an “overweight” rating in a research report on Thursday, July 23rd. Finally, Truist Financial lifted their price target on shares of Texas Instruments from $278.00 to $300.00 and gave the company a “hold” rating in a research note on Thursday, July 23rd. Sixteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $304.26.

View Our Latest Analysis on Texas Instruments Texas Instruments Price Performance NASDAQ:TXN opened at $287.85 on Wednesday. Texas Instruments Incorporated has a 12 month low of $152.73 and a 12 month high of $334.03. The stock has a 50 day moving average of $271.87 and a two-hundred day moving average of $275.18. 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 firm has a market cap of $262.88 billion, a P/E ratio of 43.81, a price-to-earnings-growth ratio of 1.58 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The company had revenue of $5.46 billion for the quarter, compared to analyst estimates of $5.26 billion. During the same period in the prior year, the firm earned $1.41 earnings per share. The business’s revenue for the quarter was up 22.8% compared to the same quarter last year. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. On average, analysts expect that Texas Instruments Incorporated will post 8.45 earnings per share for the current fiscal year.

Texas Instruments Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Friday, October 30th will be paid a dividend of $1.52 per share. The ex-dividend date of this dividend is Friday, October 30th. This is an increase from Texas Instruments’s previous quarterly dividend of $1.42. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.1%. Texas Instruments’s dividend payout ratio is 86.45%.

Insider Buying and Selling In other Texas Instruments news, VP Tsedeniya Abraham sold 7,000 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the sale, the vice president directly owned 23,181 shares of the company’s stock, valued at $6,134,388.03. This trade represents a 23.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.60% of the company’s stock.

Texas Instruments Company Profile (Free Report)

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.

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Texas Instruments Today

TXN

Texas Instruments

$282.99 +1.25 (+0.44%)

As of 12:11 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$152.73▼

$334.032.01%

43.00

$304.26

While the market chases digital artificial intelligence (AI) processors, the generative AI hardware supercycle faces a physical bottleneck. Advanced computing requires significant amounts of electricity, but that power must also be efficiently managed, monitored, and cooled.

Texas Instruments Incorporated NASDAQ: TXN recently launched nanosecond-level telemetry and power-management semiconductors engineered specifically to address these vulnerabilities. This strategic pivot transforms the analog manufacturer into a defensive, dividend-yielding infrastructure play.

Get Texas Instruments alerts:

As data centers scale to handle intensive workloads, the foundational hardware that keeps servers powered and operating reliably becomes as vital as the processors. Investors looking for a grounded entry point into the hardware narrative may find value in the physical infrastructure supporting it. Evaluating how these new chips fit into the broader tech ecosystem reveals a clear path to sustained demand.

The Power Grid: Analog Semiconductors Anchor Data CentersAI servers require massive amounts of electricity, creating significant thermal and power-routing challenges. Analog semiconductors manage these physical variables. They regulate voltage, monitor temperature, and ensure power delivery remains stable. Even brief power disruptions can cause computing errors or interrupt workloads, potentially costing operators valuable computing time.

At the recent Open Compute Project Global Summit, which began Monday, Oct. 12, Texas Instruments introduced components tailored to address these infrastructure bottlenecks. The release included the ADC34DSO75, an analog-to-digital converter operating at three gigasamples per second. This component provides data center operators with nanosecond-level remote telemetry, enabling them to detect power-rail glitches without relying on on-site debugging equipment.

Texas Instruments also launched the LMI800PS, an 800-volt isolated hot-swap controller. By consolidating multiple power distribution functions into a single chip, this controller reduces required circuit-board area by about 60%. In a server rack where physical real estate and airflow are at a premium, shrinking the footprint of power management components can free up space for other hardware and simplify system design. These product launches demonstrate that legacy analog manufacturers are playing a direct role in AI computing infrastructure.

The 300mm Fab Strategy Pays OffBeyond individual product lines, Texas Instruments' underlying manufacturing strategy is entering a pivotal transition phase. For several years, Texas Instruments has invested heavily in expanding its internal 300-millimeter wafer fabrication capacity in the United States. Manufacturing analog chips on 300-millimeter wafers rather than older 200-millimeter wafers significantly lowers the per-chip production cost, creating a structural advantage in gross margins.

This aggressive capital expenditure cycle has weighed on free cash flow in the short term. Analysts tracking the semiconductor sector anticipate a coming inflection point. As peak spending tied to the domestic fabrication build-out begins to normalize, free cash flow margins are projected to widen. This anticipated cash flow expansion serves as a de-risking mechanism for the capital return program at Texas Instruments.

The dividend payout ratio currently hovers around an elevated 86%. While a high payout ratio often signals limited room for future increases, a widening free cash flow base could provide additional support to sustain growth. Management underscored its confidence in this trajectory by recently raising the quarterly cash dividend by 7% to $1.52 per share, yielding approximately 2.1%. This move marks 23 consecutive years of payout increases, reinforcing Texas Instruments' status as a reliable income generator amid the cyclical technology sector.

What Q3 Earnings Reveal About AI DemandThe market recognizes this strategic positioning. Shares of Texas Instruments have rallied about 62% year-to-date, pushing the trailing price-to-earnings ratio to approximately 43, with the forward multiple sitting near 33. Value-conscious investors might view these multiples cautiously, especially for a stock historically categorized as a slow-growth legacy tech play.

Recent filing data shows notable insider selling during the first half of 2026, including significant block sales by both the chief executive officer and chief financial officer. Short interest crept up to nearly 20 million shares by late September, representing just over 2% of the float. Rather than signaling a fundamental breakdown, this activity aligns with standard technical resistance and profit-taking following a prolonged upward run. As Texas Instruments approaches higher valuation tiers, periods of consolidation are a standard market function.

The upcoming third-quarter earnings report on Oct. 21 will serve as the next fundamental gauge. Wall Street consensus estimates project earnings per share between $1.89 and $2.25 on approximately $5.5 billion in revenue. This aligns with prior guidance from Texas Instruments of $5.7 billion to $6.2 billion. The underlying metrics in this report, particularly order backlog and data center segment growth, will help clarify whether the new analog products are translating into immediate revenue or if the adoption curve will be more gradual.

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One subtle advantage of adding an analog provider to a growth-heavy allocation is reduced portfolio volatility. In September 2026, the broader semiconductor sector faced pressure as the 10-year Treasury yield briefly breached 5%, renewing concerns about the sustainability of tech capital expenditures.

During this macroeconomic pressure test, Texas Instruments showed a noticeably lower beta than digital pure-plays. Because analog chips integrate into industrial, automotive, and consumer electronics alongside data centers, the revenue stream remains highly diversified. This diversification provides a shock absorber against isolated sector downturns.

Investors seeking exposure to the long-term expansion of computing infrastructure might consider how physical constraints like power and heat dictate the pace of digital advancement. Companies providing the unglamorous but essential hardware to manage those constraints are positioning themselves to capture a share of the spending associated with AI infrastructure growth.

Cautious investors may want to monitor the upcoming earnings call for clarity on fab utilization rates before initiating a position, while those with a long-term horizon could view the widening cash flow profile as a stabilizing force in an otherwise volatile sector.

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Texas Instruments (TXN - Free Report) closed at $283.74 in the latest trading session, marking a -1.55% move from the prior day. This change lagged the S&P 500's daily gain of 0.6%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.64%.

Coming into today, shares of the chipmaker had gained 11.35% in the past month. In that same time, the Computer and Technology sector gained 4.03%, while the S&P 500 gained 1.34%.

Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 21, 2026. The company is forecasted to report an EPS of $2.39, showcasing a 61.49% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.91 billion, up 24.66% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $8.45 per share and revenue of $21.72 billion. These results would represent year-over-year changes of +55.05% and +22.81%, respectively.

Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 34.09. This represents no noticeable deviation compared to its industry average Forward P/E of 34.09.

Meanwhile, TXN's PEG ratio is currently 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.

Texas Instruments (TXN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this chipmaker have returned +14.8%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Semiconductor - General industry, which Texas Instruments falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Texas Instruments is expected to post earnings of $2.39 per share, indicating a change of +61.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $8.45 points to a change of +55.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $9.84 indicates a change of +16.5% from what Texas Instruments is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Texas Instruments is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Texas Instruments, the consensus sales estimate for the current quarter of $5.91 billion indicates a year-over-year change of +24.7%. For the current and next fiscal years, $21.72 billion and $24.26 billion estimates indicate +22.8% and +11.7% changes, respectively.

Last Reported Results and Surprise HistoryTexas Instruments reported revenues of $5.46 billion in the last reported quarter, representing a year-over-year change of +22.8%. EPS of $2.14 for the same period compares with $1.41 a year ago.

Compared to the Zacks Consensus Estimate of $5.22 billion, the reported revenues represent a surprise of +4.57%. The EPS surprise was +12.04%.

Over the last four quarters, Texas Instruments surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Texas Instruments is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Texas Instruments. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Ferguson Wellman Capital Management Inc. lifted its position in Texas Instruments Incorporated (NASDAQ:TXN – Free Report) by 2.1% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 137,548 shares of the semiconductor company’s stock after buying an additional 2,859 shares during the quarter. Ferguson Wellman Capital Management Inc.’s holdings in Texas Instruments were worth $38,526,000 as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in TXN. Kilter Group LLC bought a new position in Texas Instruments during the second quarter worth about $31,000. Addison Advisors LLC acquired a new stake in Texas Instruments during the 2nd quarter valued at $38,000. Caitlin John LLC bought a new position in Texas Instruments during the second quarter worth $41,000. Portus Wealth Advisors LLC acquired a new position in shares of Texas Instruments in the first quarter valued at $27,000. Finally, Scarborough Advisors LLC bought a new position in shares of Texas Instruments in the first quarter valued at about $29,000. Institutional investors and hedge funds own 84.99% of the company’s stock.

Wall Street Analyst Weigh In TXN has been the topic of a number of research reports. JPMorgan Chase & Co. upped their price target on shares of Texas Instruments from $280.00 to $340.00 and gave the company an “overweight” rating in a research note on Thursday, July 23rd. Susquehanna boosted their price objective on Texas Instruments from $300.00 to $340.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Truist Financial upped their target price on Texas Instruments from $278.00 to $300.00 and gave the company a “hold” rating in a research report on Thursday, July 23rd. The Goldman Sachs Group lifted their price target on Texas Instruments from $200.00 to $225.00 and gave the stock a “sell” rating in a report on Thursday, July 23rd. Finally, Weiss Ratings raised Texas Instruments from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, July 28th. Sixteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $304.26.

Check Out Our Latest Research Report on Texas Instruments Insider Buying and Selling at Texas Instruments In related news, VP Tsedeniya Abraham sold 7,000 shares of Texas Instruments stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the sale, the vice president directly owned 23,181 shares of the company’s stock, valued at approximately $6,134,388.03. The trade was a 23.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.60% of the company’s stock.

Texas Instruments Price Performance NASDAQ TXN traded down $0.91 during midday trading on Monday, hitting $292.89. The company had a trading volume of 1,165,357 shares, compared to its average volume of 7,637,098. The firm has a 50-day moving average price of $270.12 and a 200-day moving average price of $270.38. The company has a market capitalization of $267.48 billion, a PE ratio of 44.58, a P/E/G ratio of 1.64 and a beta of 1.35. The company has a current ratio of 4.86, a quick ratio of 3.44 and a debt-to-equity ratio of 0.72. Texas Instruments Incorporated has a twelve month low of $152.73 and a twelve month high of $334.03.

Texas Instruments (NASDAQ:TXN – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%.The company had revenue of $5.46 billion for the quarter, compared to analysts’ expectations of $5.26 billion. During the same quarter last year, the business earned $1.41 earnings per share. Texas Instruments’s revenue was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. As a group, analysts anticipate that Texas Instruments Incorporated will post 8.45 earnings per share for the current fiscal year.

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

Texas Instruments Profile (Free Report)

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.

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