Texas Instruments Q3 Earnings Forecast Lifted by KeyCorp

Key Points

• KeyCorp raised its Q3 2026 EPS forecast for Texas Instruments to $2.48 from $2.23 and maintained an “Overweight” rating with a $400 price target. It projects full-year 2026 EPS of $8.77 and 2027 EPS of $11.92.
• Texas Instruments recently beat quarterly expectations, reporting $2.14 EPS and $5.46 billion in revenue, with revenue up 22.8% year over year. Analysts point to strength in its analog and embedded-processing businesses, though the stock’s elevated valuation increases downside risk if margins or demand disappoint.
• The company increased its quarterly dividend to $1.52 per share, or $6.08 annualized, representing a 2.2% yield. The dividend is payable November 10 to shareholders of record October 30.

Texas Instruments Incorporated (NASDAQ:TXN - Free Report) - KeyCorp increased their Q3 2026 earnings estimates for shares of Texas Instruments in a report released on Wednesday, October 14th. KeyCorp analyst J. Vinh now expects that the semiconductor company will post earnings of $2.48 per share for the quarter, up from their previous estimate of $2.23. KeyCorp currently has an "Overweight" rating and a $400.00 price target on the stock. The consensus estimate for Texas Instruments' current full-year earnings is $8.48 per share. KeyCorp also issued estimates for Texas Instruments' Q4 2026 earnings at $2.47 EPS, FY2026 earnings at $8.77 EPS, Q1 2027 earnings at $2.64 EPS, Q2 2027 earnings at $3.15 EPS, Q3 2027 earnings at $3.31 EPS, Q4 2027 earnings at $2.82 EPS and FY2027 earnings at $11.92 EPS.

A number of other equities research analysts also recently issued reports on the stock. Wall Street Zen upgraded shares of Texas Instruments from a "hold" rating to a "buy" rating in a research note on Saturday, July 18th. Wells Fargo & Company raised their target price on shares of Texas Instruments from $300.00 to $310.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. The Goldman Sachs Group boosted their target price on shares of Texas Instruments from $200.00 to $225.00 and gave the company a "sell" rating in a research report on Thursday, July 23rd. TD Cowen cut their price target on shares of Texas Instruments from $360.00 to $340.00 and set a "buy" rating for the company in a report on Thursday, July 23rd. Finally, Morgan Stanley increased their price target 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. Sixteen 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, the company has an average rating of "Hold" and a consensus target price of $304.26.

Texas Instruments Price Performance

TXN stock opened at $276.48 on Monday. The company has a market cap of $252.50 billion, a PE ratio of 42.08, a price-to-earnings-growth ratio of 1.54 and a beta of 1.35. The business has a 50-day simple moving average of $271.75 and a 200 day simple moving average of $277.05. Texas Instruments has a 52 week low of $152.73 and a 52 week high of $334.03. 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 posted its quarterly earnings data on Wednesday, July 22nd. The semiconductor company reported $2.14 EPS for the quarter, topping analysts' consensus estimates of $1.91 by $0.23. The firm had revenue of $5.46 billion for the quarter, compared to analyst estimates of $5.26 billion. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%. The company's revenue was up 22.8% on a year-over-year basis. During the same quarter last year, the company earned $1.41 EPS. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS.

Texas Instruments Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Friday, October 30th will be given a dividend of $1.52 per share. The ex-dividend date is Friday, October 30th. This represents a $6.08 annualized dividend and a dividend yield of 2.2%. This is an increase from Texas Instruments's previous quarterly dividend of $1.42. Texas Instruments's dividend payout ratio is currently 86.45%.

Insiders Place Their Bets

In related news, VP Tsedeniya Abraham sold 7,000 shares of the firm's stock in a transaction dated 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of TXN. BlackRock Inc. acquired a new stake in Texas Instruments during the 2nd quarter valued at $24,607,313,000. Bank of New York Mellon Corp acquired a new position in shares of Texas Instruments in the second quarter worth $4,488,666,000. Bank of America Corp DE acquired a new position in shares of Texas Instruments in the second quarter worth $3,700,842,000. Primecap Management Co. CA purchased a new stake in shares of Texas Instruments in the second quarter valued at $2,538,063,000. Finally, Legal & General Group Plc acquired a new stake in shares of Texas Instruments during the second quarter valued at $1,918,277,000. Institutional investors and hedge funds own 84.99% of the company's stock.

Texas Instruments News Roundup

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

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.

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