Texas Instruments (NASDAQ:TXN) Announces Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• Texas Instruments beat earnings expectations with Q2 EPS of $2.14 versus $1.91 expected, and revenue of $5.46 billion also topped forecasts. The company said Q2 revenue rose 13% sequentially and 23% year over year.
• The company issued stronger-than-expected Q3 guidance, projecting EPS of 2.230 to 2.570 and revenue of $5.7 billion to $6.2 billion. Management cited broadening demand, especially in automotive, industrial, and data center markets.
• Texas Instruments highlighted robust profitability and cash flow, including a 61% gross margin, $2.7 billion in operating cash flow, and $6.5 billion in trailing free cash flow. It also returned $5.8 billion to shareholders over the past year and kept 2026 capex guidance at $2 billion to $3 billion.

Texas Instruments (NASDAQ:TXN - Get Free Report) announced its quarterly earnings data on Wednesday. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.23, FiscalAI reports. Texas Instruments had a return on equity of 32.49% and a net margin of 29.11%.The firm had revenue of $5.46 billion for the quarter, compared to analysts' expectations 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 Stock Up 1.0%

Texas Instruments stock traded up $2.89 during mid-day trading on Wednesday, hitting $294.19. The company's stock had a trading volume of 10,670,744 shares, compared to its average volume of 8,157,201. Texas Instruments has a 52-week low of $152.73 and a 52-week high of $334.03. The company has a market cap of $267.74 billion, a PE ratio of 50.38, a price-to-earnings-growth ratio of 1.42 and a beta of 1.32. The company has a debt-to-equity ratio of 0.77, a current ratio of 4.46 and a quick ratio of 2.94. The firm's 50 day moving average is $302.23 and its 200 day moving average is $245.54.

Texas Instruments Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Investors of record on Friday, July 31st will be paid a $1.42 dividend. This represents a $5.68 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, July 31st. Texas Instruments's dividend payout ratio is currently 97.26%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TXN. Wolfe Research reissued an "outperform" rating and issued a $315.00 target price on shares of Texas Instruments in a report on Thursday, April 23rd. TD Cowen increased their target price on Texas Instruments from $300.00 to $360.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Rosenblatt Securities lifted their target price on Texas Instruments from $240.00 to $330.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. UBS Group raised their price objective on shares of Texas Instruments from $295.00 to $350.00 and gave the company a "buy" rating in a research note on Monday, June 29th. Finally, Truist Financial upped their price objective on Texas Instruments from $225.00 to $278.00 and gave the company a "hold" rating in a report on Thursday, April 23rd. Thirteen 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's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $285.44.

Insider Activity at Texas Instruments

In other news, CFO Rafael R. Lizardi sold 47,734 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $308.10, for a total value of $14,706,845.40. Following the transaction, the chief financial officer owned 85,485 shares in the company, valued at $26,337,928.50. This represents a 35.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Amichai Ron sold 18,365 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $272.43, for a total transaction of $5,003,176.95. Following the completion of the sale, the vice president directly owned 81,085 shares of the company's stock, valued at $22,089,986.55. This trade represents a 18.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 303,475 shares of company stock worth $85,666,638. Company insiders own 0.60% of the company's stock.

Institutional Trading of Texas Instruments

Hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its stake in shares of Texas Instruments by 33.4% during the 4th quarter. Brighton Jones LLC now owns 16,840 shares of the semiconductor company's stock worth $3,158,000 after purchasing an additional 4,218 shares in the last quarter. Intech Investment Management LLC lifted its stake in shares of Texas Instruments by 12.8% in the 1st quarter. Intech Investment Management LLC now owns 9,084 shares of the semiconductor company's stock valued at $1,632,000 after purchasing an additional 1,031 shares during the last quarter. Osterweis Capital Management Inc. boosted its holdings in Texas Instruments by 1,810.0% in the second quarter. Osterweis Capital Management Inc. now owns 191 shares of the semiconductor company's stock worth $40,000 after purchasing an additional 181 shares in the last quarter. Main Street Financial Solutions LLC increased its position in Texas Instruments by 1.7% during the second quarter. Main Street Financial Solutions LLC now owns 7,417 shares of the semiconductor company's stock worth $1,540,000 after buying an additional 126 shares during the last quarter. Finally, HUB Investment Partners LLC raised its holdings in Texas Instruments by 3.5% during the second quarter. HUB Investment Partners LLC now owns 14,673 shares of the semiconductor company's stock valued at $3,046,000 after buying an additional 496 shares in the last quarter. 84.99% of the stock is currently owned by hedge funds and other institutional investors.

More Texas Instruments News

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

Texas Instruments Company Profile

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.

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 contact@marketbeat.com.