Texas Instruments (NASDAQ:TXN) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Q1 beat and upbeat guidance: Texas Instruments reported EPS of $1.68 versus $1.37 expected and revenue of $4.83B (+18.6% YoY), and set Q2 EPS guidance of $1.77–$2.05, prompting the stock to gap up (opened $260.31, last $273.36).
• Dividend and payout strain: The company declared a quarterly dividend of $1.42 (annualized $5.68) for a ~2.1% yield, while the dividend payout ratio is an elevated 104.41%.
• Mixed market signals: Several brokerages raised ratings and price targets (e.g., BofA to $320, Rosenblatt to $330), but recent insider selling and a high valuation (PE ~50.8, PEG ~2.12) could limit upside.

Shares of Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $236.31, but opened at $260.31. Texas Instruments shares last traded at $273.3550, with a volume of 5,140,708 shares traded.

The semiconductor company reported $1.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.37 by $0.31. Texas Instruments had a return on equity of 30.44% and a net margin of 28.28%.The company had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.85 billion. During the same period in the previous year, the company posted $1.23 EPS. The firm's revenue for the quarter was up 18.6% compared to the same quarter last year. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS.

Texas Instruments Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Investors of record on Tuesday, May 5th will be given a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Tuesday, May 5th. Texas Instruments's dividend payout ratio (DPR) is 104.41%.

More Texas Instruments News

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

• Positive Sentiment: Q1 beat and above-consensus guidance — TXN reported EPS $1.68 (vs. ~$1.37 est.) and revenue up ~18.6% YoY (~$4.8B). Management set Q2 EPS guidance of $1.77–2.05 and revenue guidance above Street estimates, driven by industrial and data-center demand; that combination is driving the rally. Article Title
• Positive Sentiment: Multiple analyst upgrades and bigger price targets — Bank of America upgraded TXN from Neutral to Buy and raised its PT to $320; Robert W. Baird raised its PT to $300 and Rosenblatt to $330. Those upgrades amplify buying pressure by signaling sustained upside from better demand and margin trends. Article Title
• Positive Sentiment: Demand mix improving — Reports and commentary highlight stronger data-center buildouts and a rebound in industrial end markets, which matter for TI’s analog-heavy portfolio and support above-consensus guidance. Article Title
• Neutral Sentiment: Institutional positioning is mixed — Quiver/filings show large portfolio adjustments by some institutional holders (both adds and sizable reductions), suggesting flows could amplify volatility even as fundamentals improve. Article Title
• Negative Sentiment: Insider selling and elevated valuation — Multiple insider share sales were reported and TXN currently trades at a high P/E (~43) and PEG >2, which could limit upside if growth stalls or macro demand softens. Article Title

Analysts Set New Price Targets

A number of brokerages have recently commented on TXN. Deutsche Bank Aktiengesellschaft increased their price target on shares of Texas Instruments from $185.00 to $205.00 and gave the stock a "hold" rating in a report on Wednesday, January 28th. Citigroup reissued a "buy" rating on shares of Texas Instruments in a research note on Thursday. TD Cowen reaffirmed a "buy" rating on shares of Texas Instruments in a research note on Thursday. BNP Paribas Exane raised Texas Instruments from a "strong sell" rating to a "hold" rating in a research note on Thursday, January 22nd. Finally, Benchmark reaffirmed a "buy" rating and set a $315.00 price objective (up from $250.00) on shares of Texas Instruments in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $238.47.

Insider Buying and Selling

In related news, CFO Rafael R. Lizardi sold 7,096 shares of the company's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $230.78, for a total transaction of $1,637,614.88. Following the completion of the sale, the chief financial officer owned 85,454 shares in the company, valued at approximately $19,721,074.12. This represents a 7.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Mark Gary sold 12,921 shares of the company's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $230.10, for a total transaction of $2,973,122.10. Following the sale, the vice president directly owned 45,547 shares of the company's stock, valued at $10,480,364.70. The trade was a 22.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 114,284 shares of company stock valued at $25,531,935 over the last ninety days. 0.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Texas Instruments

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. High Point Wealth Management LLC purchased a new stake in Texas Instruments in the 4th quarter worth $25,000. Strategic Wealth Investment Group LLC purchased a new position in shares of Texas Instruments in the second quarter valued at about $25,000. Advocate Investing Services LLC bought a new position in shares of Texas Instruments in the fourth quarter worth about $25,000. Ares Financial Consulting LLC bought a new position in shares of Texas Instruments in the fourth quarter worth about $26,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Texas Instruments during the fourth quarter worth about $27,000. 84.99% of the stock is owned by hedge funds and other institutional investors.

Texas Instruments Price Performance

The firm has a 50-day moving average of $206.89 and a 200-day moving average of $189.75. The stock has a market cap of $251.89 billion, a PE ratio of 50.79, a PEG ratio of 2.12 and a beta of 1.01. The company has a debt-to-equity ratio of 0.83, a current ratio of 4.35 and a quick ratio of 2.83.

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.

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