Texas Instruments (NASDAQ:TXN) Posts Quarterly Earnings Results, Beats Expectations By $0.31 EPS

Key Points

• Q1 beat: Texas Instruments reported $1.68 EPS, beating consensus by $0.31 while revenue rose ~18.6% YoY to $4.83B, with strong margins (net margin 28.3%, ROE 30.4%).
• Raised guidance: TI updated Q2 2026 guidance to $1.77–$2.05 EPS and $5.0B–$5.4B revenue, well above Street expectations, citing accelerating industrial and data‑center/AI demand.
• Market and shareholder signals: Shares jumped on the news to ~$236 with heavy volume; the company announced a $1.42 quarterly dividend (2.4% yield) even as insider selling has been notable recently (114,284 shares sold in 90 days).

Texas Instruments (NASDAQ:TXN - Get Free Report) issued its quarterly earnings results on Wednesday. The semiconductor company reported $1.68 EPS for the quarter, topping the consensus estimate of $1.37 by $0.31, Zacks reports. The firm had revenue of $4.83 billion during the quarter, compared to analysts' expectations of $4.85 billion. Texas Instruments had a return on equity of 30.44% and a net margin of 28.28%.The firm's revenue for the quarter was up 18.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.23 earnings per share. Texas Instruments updated its Q2 2026 guidance to 1.770-2.050 EPS.

Texas Instruments Stock Performance

Shares of TXN stock traded up $3.16 during mid-day trading on Wednesday, hitting $236.31. 11,337,460 shares of the stock were exchanged, compared to its average volume of 7,426,919. Texas Instruments has a 12-month low of $151.27 and a 12-month high of $238.80. The stock has a market capitalization of $215.15 billion, a price-to-earnings ratio of 43.44, a P/E/G ratio of 2.12 and a beta of 1.01. The stock's fifty day simple moving average is $206.70 and its two-hundred day simple moving average is $189.42. The company has a debt-to-equity ratio of 0.83, a quick ratio of 2.83 and a current ratio of 4.35.

Texas Instruments Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Tuesday, May 5th will be issued a dividend of $1.42 per share. The ex-dividend date of this dividend is Tuesday, May 5th. This represents a $5.68 annualized dividend and a dividend yield of 2.4%. Texas Instruments's dividend payout ratio (DPR) is presently 104.41%.

Insider Buying and Selling at Texas Instruments

In related news, VP Hagop H. Kozanian sold 6,843 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $225.95, for a total transaction of $1,546,175.85. Following the completion of the transaction, the vice president directly owned 75,425 shares of the company's stock, valued at $17,042,278.75. This represents a 8.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Mark A. Blinn sold 3,144 shares of the stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $221.58, for a total transaction of $696,647.52. Following the transaction, the director directly owned 11,670 shares of the company's stock, valued at $2,585,838.60. This represents a 21.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 114,284 shares of company stock valued at $25,531,935. Corporate insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On Texas Instruments

A number of institutional investors have recently modified their holdings of TXN. Brighton Jones LLC grew its holdings in Texas Instruments by 33.4% in the fourth quarter. Brighton Jones LLC now owns 16,840 shares of the semiconductor company's stock valued at $3,158,000 after purchasing an additional 4,218 shares during the period. Wellspring Financial Advisors LLC purchased a new stake in shares of Texas Instruments during the fourth quarter valued at approximately $216,000. Burke & Herbert Bank & Trust Co. raised its stake in shares of Texas Instruments by 9.3% during the fourth quarter. Burke & Herbert Bank & Trust Co. now owns 1,237 shares of the semiconductor company's stock valued at $215,000 after purchasing an additional 105 shares during the period. Vines Capital Management LLC bought a new stake in shares of Texas Instruments in the fourth quarter worth $213,000. Finally, Gilpin Wealth Management LLC bought a new stake in shares of Texas Instruments in the fourth quarter worth $146,000. Institutional investors and hedge funds own 84.99% of the company's stock.

More Texas Instruments News

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

• Positive Sentiment: TI raised Q2 2026 guidance well above Street expectations — EPS guidance of $1.77–$2.05 (consensus ~$1.57) and revenue guidance of $5.0B–$5.4B (consensus ~$4.8B), signaling stronger-than-expected demand into the quarter. Read More.
• Positive Sentiment: Q1 2026 results beat expectations: revenue ~$4.8B (+~18.6% YoY) and diluted EPS $1.68 (+31% YoY), with margin expansion and stronger cash generation cited in the release — a clean operational beat that supports the bullish guidance. Read More.
• Positive Sentiment: Management cited accelerating demand from industrial and data‑center customers — the AI/data‑center buildout is explicitly boosting analog chip demand, which investors view as a durable tailwind for revenue and margins. Read More.
• Neutral Sentiment: Analyst coverage and price targets remain mixed: several buy/overweight ratings coexist with at least one underperform; median recent target noted around $227, leaving room for diverging views on how sustainably AI/data‑center demand translates to TI’s growth. Read More.
• Neutral Sentiment: Institutional positioning has shifted — some large holders trimmed exposure recently while others added, so flows could add volatility as investors re‑balance into the new guidance/earnings reality. Read More.
• Negative Sentiment: Notable insider selling has been reported in recent months (multiple senior VPs sold shares), which some investors view as a cautionary signal on near‑term insider conviction. Read More.

Analyst Upgrades and Downgrades

TXN has been the topic of a number of recent research reports. The Goldman Sachs Group boosted their price objective on Texas Instruments from $156.00 to $175.00 and gave the stock a "sell" rating in a research note on Wednesday, January 28th. JPMorgan Chase & Co. lifted their target price on Texas Instruments from $210.00 to $227.00 and gave the company an "overweight" rating in a research report on Wednesday, January 28th. Benchmark lifted their target price on Texas Instruments from $220.00 to $250.00 and gave the company a "buy" rating in a research report on Wednesday, January 28th. Rosenblatt Securities restated a "buy" rating and issued a $240.00 target price on shares of Texas Instruments in a research report on Thursday, February 5th. Finally, Jefferies Financial Group lifted their target price on Texas Instruments from $180.00 to $210.00 and gave the company a "hold" rating in a research report on Wednesday, January 28th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fourteen have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $218.10.

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.

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