Texas Instruments (NASDAQ:TXN) Announces Quarterly Earnings Results

Texas Instruments (NASDAQ:TXN) issued its quarterly earnings results on Wednesday. The semiconductor company reported $2.14 EPS for the quarter, topping the consensus estimate of $1.91 by $0.23, FiscalAI reports. Texas Instruments had a net margin of 29.11% and a return on equity of 32.49%. The company had revenue of $5.46 billion during the quarter, compared to analyst estimates of $5.24 billion. Texas Instruments updated its Q3 2026 guidance to 2.230-2.570 EPS.

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

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

Texas Instruments Price Performance

Shares of Texas Instruments stock traded up $2.89 on Wednesday, hitting $294.19. 10,670,744 shares of the company were exchanged, compared to its average volume of 8,157,201. The company has a quick ratio of 2.94, a current ratio of 4.46 and a debt-to-equity ratio of 0.77. The company has a 50-day moving average price of $302.23 and a 200 day moving average price of $245.54. The stock has a market capitalization of $267.74 billion, a price-to-earnings ratio of 50.38, a price-to-earnings-growth ratio of 1.42 and a beta of 1.32. Texas Instruments has a 1-year low of $152.73 and a 1-year high of $334.03.

Texas Instruments Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Friday, July 31st will be paid a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Friday, July 31st. Texas Instruments’s dividend payout ratio (DPR) is 97.26%.

Texas Instruments News Summary

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

• Positive Sentiment: Texas Instruments reported second-quarter EPS of $2.14, ahead of the $1.91 consensus, with revenue of $5.46 billion topping estimates of $5.24 billion. MarketBeat earnings report
• Positive Sentiment: The company raised its third-quarter outlook, guiding for EPS of 2.230-2.570 versus 2.110 expected and revenue of $5.7 billion-$6.2 billion versus $5.5 billion expected. PR Newswire release
• Positive Sentiment: Reuters reported that Texas Instruments forecast revenue above estimates, citing a recovery in industrial chip demand and stronger AI data center chip momentum. Reuters article
• Positive Sentiment: Earlier analyst optimism also helped sentiment, including a Susquehanna price-target increase to $340 ahead of the report, reinforcing expectations for a solid quarter. Yahoo Finance article

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Zacks Research cut Texas Instruments from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. TD Cowen raised their target price on Texas Instruments from $300.00 to $360.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Truist Financial lifted their price target on Texas Instruments from $225.00 to $278.00 and gave the stock a “hold” rating in a research note on Thursday, April 23rd. Jefferies Financial Group upgraded Texas Instruments from a “hold” rating to a “buy” rating in a research report on Friday, May 22nd. Finally, Sanford C. Bernstein initiated coverage on Texas Instruments in a research note on Friday, May 22nd. They issued a “market perform” rating for the company. Thirteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Texas Instruments presently has an average rating of “Hold” and a consensus price target of $285.44.

Insider Transactions at Texas Instruments

In other Texas Instruments news, VP Shanon J. Leonard sold 4,963 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $295.22, for a total value of $1,465,176.86. Following the completion of the sale, the vice president directly owned 24,867 shares in the company, valued at $7,341,235.74. This represents a 16.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Ahmad Bahai sold 5,000 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $309.13, for a total value of $1,545,650.00. Following the completion of the sale, the vice president directly owned 42,519 shares of the company’s stock, valued at $13,143,898.47. This trade represents a 10.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 303,475 shares of company stock valued at $85,666,638. 0.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Texas Instruments

A number of hedge funds have recently modified their holdings of TXN. State Street Corp raised its stake in Texas Instruments by 0.5% during the third quarter. State Street Corp now owns 43,555,112 shares of the semiconductor company’s stock worth $8,002,381,000 after purchasing an additional 230,098 shares during the period. Charles Schwab Investment Management Inc. increased its position in shares of Texas Instruments by 6.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 24,288,604 shares of the semiconductor company’s stock valued at $4,213,832,000 after acquiring an additional 1,517,420 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Texas Instruments by 0.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 15,813,193 shares of the semiconductor company’s stock worth $2,743,432,000 after buying an additional 137,735 shares during the period. Morgan Stanley grew its holdings in shares of Texas Instruments by 0.6% in the fourth quarter. Morgan Stanley now owns 12,294,129 shares of the semiconductor company’s stock valued at $2,132,909,000 after purchasing an additional 69,176 shares in the last quarter. Finally, Amundi boosted its holdings in Texas Instruments by 61.0% in the third quarter. Amundi now owns 9,445,243 shares of the semiconductor company’s stock valued at $1,717,240,000 after purchasing an additional 3,580,147 shares during the period. Hedge funds and other institutional investors own 84.99% of the company’s stock.

About Texas Instruments

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

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