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

Texas Instruments (NASDAQ:TXN) released its quarterly earnings results on Wednesday. The semiconductor company reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.22, Zacks reports. Texas Instruments had a return on equity of 40.51% and a net margin of 34.25%. The company had revenue of $6.05 billion during the quarter, compared to the consensus estimate of $5.94 billion. During the same quarter in the prior year, the company posted $1.48 EPS. The firm’s revenue was up 27.7% on a year-over-year basis.

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

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

Texas Instruments Price Performance

TXN stock opened at $284.69 on Monday. Texas Instruments has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The company has a debt-to-equity ratio of 0.67, a current ratio of 5.59 and a quick ratio of 4.05. The stock has a market capitalization of $259.99 billion, a price-to-earnings ratio of 36.92, a PEG ratio of 1.43 and a beta of 1.35. The business’s fifty day moving average price is $271.98 and its two-hundred day moving average price is $280.03.

Texas Instruments Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.52 per share. This is a boost 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%. The ex-dividend date is Friday, October 30th. Texas Instruments’s dividend payout ratio is presently 73.67%.

Insider Transactions at Texas Instruments

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

Key Headlines Impacting Texas Instruments

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

• Positive Sentiment: Texas Instruments reported third-quarter revenue of approximately $6.06 billion, up 28% year over year, while EPS increased 77% to $2.62 and exceeded consensus expectations. Industrial, analog and data-center demand drove the results, with data-center revenue reportedly rising 95%. TXN Q3 Earnings Beat Estimates on Strong Analog, Data Center Demand
• Positive Sentiment: Management’s fourth-quarter revenue guidance, with a midpoint of about $6.05 billion, came in well above analyst expectations. Capacity expansion and broader cyclical recovery could support longer-term revenue, margins and cash flow. TXN Q3 Deep Dive: Industrial and Data Center Growth Drive Outlook Upgrade
• Positive Sentiment: Analyst sentiment strengthened: Zacks upgraded TXN to Rank #1, Freedom Broker raised its rating to Buy with a $330 target, and JPMorgan lifted its target to $365 while maintaining an Overweight rating. Texas Instruments Upgraded to Strong Buy
• Positive Sentiment: New chips for AI data centers—including power-monitoring, high-voltage distribution and timing components—give TXN additional exposure to data-center infrastructure growth. Texas Instruments Debuts Industry First Chips for AI Data Centers
• Neutral Sentiment: Unusual call-option activity and comparisons with Micron indicate bullish trading interest, although Micron was viewed as having stronger AI-driven growth and a lower valuation. Micron vs. Texas Instruments
• Negative Sentiment: TXN’s premium valuation remains a risk if the industrial recovery or AI infrastructure spending slows. Mizuho lowered its target to $290 and kept a Neutral rating, highlighting limited near-term upside. Mizuho Texas Instruments Rating

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. The Goldman Sachs Group reissued a “sell” rating and issued a $250.00 price target on shares of Texas Instruments in a research report on Thursday. Mizuho dropped their price objective on shares of Texas Instruments from $305.00 to $290.00 and set a “neutral” rating for the company in a report on Thursday. UBS Group decreased their price target on Texas Instruments from $380.00 to $360.00 and set a “buy” rating on the stock in a research report on Thursday. Wells Fargo & Company reduced their price objective on Texas Instruments from $310.00 to $300.00 and set an “equal weight” rating on the stock in a research note on Tuesday, October 20th. Finally, Stifel Nicolaus raised their price objective on shares of Texas Instruments from $360.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $311.39.

Texas Instruments Company Profile

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

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