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

Texas Instruments (NASDAQ:TXN) posted its quarterly earnings data on Wednesday. The semiconductor company reported $2.14 EPS for the quarter, beating analysts’ consensus estimates of $1.91 by $0.23, FiscalAI reports. The company had revenue of $5.46 billion during the quarter, compared to analyst estimates of $5.26 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 22.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.41 earnings per share. 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 Performance

Shares of NASDAQ TXN opened at $294.19 on Thursday. The firm has a market capitalization of $267.74 billion, a price-to-earnings ratio of 50.38, a PEG ratio of 1.49 and a beta of 1.32. Texas Instruments has a one year low of $152.73 and a one year high of $334.03. The business has a fifty day simple moving average of $301.99 and a 200 day simple moving average of $246.39. The company has a current ratio of 4.46, a quick ratio of 2.94 and a debt-to-equity ratio of 0.77.

Texas Instruments Announces Dividend

The company also recently announced 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 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, July 31st. Texas Instruments’s dividend payout ratio is presently 97.26%.

Insider Activity

In other news, VP Shanon J. Leonard sold 4,963 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $295.22, for a total value of $1,465,176.86. Following the completion of the transaction, the vice president owned 24,867 shares in the company, valued at approximately $7,341,235.74. This represents a 16.64% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Ahmad Bahai sold 5,000 shares of Texas Instruments stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $309.13, for a total transaction of $1,545,650.00. Following the sale, the vice president owned 42,519 shares in the company, valued at approximately $13,143,898.47. This trade represents a 10.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 303,475 shares of company stock valued at $85,666,638. 0.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Texas Instruments

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Amundi lifted its holdings in Texas Instruments by 61.0% during the 3rd quarter. Amundi now owns 9,445,243 shares of the semiconductor company’s stock worth $1,717,240,000 after buying an additional 3,580,147 shares in the last quarter. Bank of Nova Scotia lifted its holdings in Texas Instruments by 962.4% in the fourth quarter. Bank of Nova Scotia now owns 1,798,454 shares of the semiconductor company’s stock valued at $312,014,000 after buying an additional 1,629,172 shares during the period. Marshall Wace LLP acquired a new position in shares of Texas Instruments in the 3rd quarter valued at $282,492,000. Charles Schwab Investment Management Inc. grew its stake in shares of Texas Instruments by 6.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 24,288,604 shares of the semiconductor company’s stock worth $4,213,832,000 after purchasing an additional 1,517,420 shares during the period. Finally, Federated Hermes Inc. increased its holdings in Texas Instruments by 2,713.7% in the fourth quarter. Federated Hermes Inc. now owns 1,317,815 shares of the semiconductor company’s stock valued at $228,628,000 after purchasing an additional 1,270,979 shares during the last quarter. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Texas Instruments topped Q2 estimates, reporting EPS of $2.14 versus $1.91 expected and revenue of $5.46 billion versus $5.26 billion expected. The company also said revenue rose 22.8% year over year, pointing to a solid recovery in demand. Article Title
• Positive Sentiment: Management guided Q3 EPS and revenue above Wall Street forecasts, which suggests improving industrial chip demand and momentum in AI/data center-related chips. Article Title
• Positive Sentiment: Reports noted improving inventory levels and stronger demand across industrial, automotive, and data center markets, which is constructive for the analog semiconductor cycle. Article Title
• Neutral Sentiment: Coverage around the earnings call and transcript highlighted the same strong results and guidance, but did not add materially new information beyond the company’s official release. Article Title
• Negative Sentiment: Despite the beat, TXN shares slipped as investors sold into strength, likely because the quarter met a very high bar and the analog-chip group had already rallied on recovery hopes. Article Title
• Negative Sentiment: Broader weakness in analog semiconductor peers, including STMicroelectronics, is also pressuring sentiment and may be weighing on TXN even after strong results. Article Title

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on TXN. The Goldman Sachs Group reiterated a “sell” rating on shares of Texas Instruments in a report on Thursday. Citigroup reaffirmed a “buy” rating on shares of Texas Instruments in a research report on Tuesday, July 14th. Stifel Nicolaus increased their price target on shares of Texas Instruments from $340.00 to $360.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Cantor Fitzgerald reissued a “neutral” rating on shares of Texas Instruments in a report on Monday. Finally, HC Wainwright lowered Texas Instruments to a “neutral” rating in a report on Friday, May 22nd. Thirteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, Texas Instruments has an average rating of “Hold” and an average price target of $290.75.

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.