Zacks Research Has Optimistic Outlook of TXN Q3 Earnings

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for Texas Instruments to $1.81 (from $1.63) and carries a Strong-Buy rating, projecting stronger multi‑quarter results and FY2028 EPS of $10.15.
• TXN beat Q1 EPS expectations ($1.68 vs. $1.37) with revenue up 18.6% year‑over‑year and set Q2 guidance of $1.77–$2.05 EPS; AI/data‑center demand has fueled several price‑target increases even as Wall Street’s consensus remains mixed (average rating "Hold", avg target $257.68).
• Insider selling has been notable (CEO and CAO among insiders selling; ~345,080 shares sold, ~$89.4M over three months), while the company pays a quarterly dividend of $1.42 ($5.68 annual, 2.0% yield) with a high payout ratio of 97.26%.

Texas Instruments Incorporated (NASDAQ:TXN - Free Report) - Equities research analysts at Zacks Research lifted their Q3 2026 EPS estimates for shares of Texas Instruments in a research report issued to clients and investors on Wednesday, May 6th. Zacks Research analyst Team now forecasts that the semiconductor company will post earnings per share of $1.81 for the quarter, up from their prior estimate of $1.63. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Texas Instruments' current full-year earnings is $7.60 per share. Zacks Research also issued estimates for Texas Instruments' Q4 2026 earnings at $1.77 EPS, Q1 2027 earnings at $1.86 EPS, Q3 2027 earnings at $2.23 EPS, Q1 2028 earnings at $2.26 EPS and FY2028 earnings at $10.15 EPS.

Texas Instruments (NASDAQ:TXN - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.68 earnings per share for the quarter, beating the consensus estimate of $1.37 by $0.31. The firm had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.85 billion. Texas Instruments had a net margin of 29.11% and a return on equity of 32.49%. The business's quarterly revenue was up 18.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.23 EPS. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS.

TXN has been the subject of several other reports. Barclays set a $175.00 target price on shares of Texas Instruments in a report on Wednesday, January 28th. Rosenblatt Securities lifted their target price on shares of Texas Instruments from $240.00 to $330.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Bank of America raised shares of Texas Instruments from a "neutral" rating to a "buy" rating and lifted their price target for the company from $235.00 to $320.00 in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Texas Instruments from $185.00 to $205.00 and gave the company a "hold" rating in a research note on Wednesday, January 28th. Finally, Stifel Nicolaus lifted their price target on shares of Texas Instruments from $250.00 to $290.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $257.68.

Texas Instruments Price Performance

NASDAQ:TXN opened at $289.44 on Thursday. 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 has a market cap of $263.42 billion, a price-to-earnings ratio of 49.56, a price-to-earnings-growth ratio of 1.42 and a beta of 1.31. The company has a 50 day moving average price of $215.54 and a 200-day moving average price of $195.48. Texas Instruments has a 1-year low of $152.73 and a 1-year high of $292.64.

Institutional Investors Weigh In On Texas Instruments

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

Insider Activity at Texas Instruments

In other news, VP Mark Gary sold 13,689 shares of the business's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $279.25, for a total transaction of $3,822,653.25. Following the completion of the transaction, the vice president directly owned 45,547 shares of the company's stock, valued at approximately $12,718,999.75. The trade was a 23.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Julie C. Knecht sold 9,956 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $278.70, for a total value of $2,774,737.20. Following the transaction, the chief accounting officer directly owned 9,120 shares of the company's stock, valued at approximately $2,541,744. This represents a 52.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 345,080 shares of company stock valued at $89,405,821. 0.60% of the stock is owned by company insiders.

Texas Instruments Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Tuesday, May 5th will be paid a dividend of $1.42 per share. The ex-dividend date is Tuesday, May 5th. This represents a $5.68 dividend on an annualized basis and a yield of 2.0%. Texas Instruments's dividend payout ratio is 97.26%.

Key Texas Instruments News

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

• Positive Sentiment: Q1 beat and raised guidance: TXN topped EPS expectations and set Q2 revenue and EPS guidance above street assumptions, a direct catalyst for the rally as investors reprice growth and margin leverage. Read More.
• Positive Sentiment: AI/data‑center demand lift: Coverage highlights stronger demand from data centers and AI-related markets that supports higher utilization and justifies capex/manufacturing investments, boosting sentiment. Read More.
• Neutral Sentiment: Analyst landscape and targets: Wall Street is mixed — several firms raised targets while some remain cautious; the stock’s strong YTD move has prompted re‑ratings but consensus remains varied. Read More.
• Neutral Sentiment: Long‑term track record and income angle: Articles recap TXN’s multi‑year total‑return story and note the recent quarterly dividend (high payout ratio), which supports income investors but limits free‑cash growth expectations. Read More.
• Negative Sentiment: Insider selling — CEO sale: CEO Haviv Ilan sold 20,000 shares (~$5.6M) on May 4; large insider sales can create short‑term worry even if for non‑operational reasons. Read More.
• Negative Sentiment: Insider selling — CAO sale: CAO Julie Knecht sold ~9,956 shares (~$2.8M) and materially reduced her holding, adding to the perception of insider liquidity taking. Read More.

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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