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

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

Here are the key takeaways from Texas Instruments’ conference call:

• Strong Q1 results — revenue $4.8 billion (+9% sequential, +19% year‑over‑year), with Analog +22% YoY, Embedded +12% YoY, Industrial up ~30% YoY and Data Center up ~90% YoY.
• Q2 guidance is above seasonal — revenue range $5.0–$5.4 billion and EPS $1.77–$2.05 — signaling management expects sustained demand into the quarter.
• Cash flow and capital returns strengthened — Q1 operating cash flow $1.5B, TTM free cash flow $4.4B (from $1.7B prior year), $965M of CHIPS incentives received (including $555M), and $6B returned to shareholders over the past 12 months.
• TI announced the acquisition of Silicon Labs (expected to close H1 2027) to broaden embedded wireless connectivity, but management warned of ongoing acquisition charges that will affect near‑term GAAP results.
• Management highlights a manufacturing advantage — 300 mm fabs, internalized assembly/test and the ability to modulate wafer starts — which they say enables shorter lead times and potential share gains if demand persists.

Texas Instruments Stock Performance

TXN opened at $274.37 on Thursday. The company has a debt-to-equity ratio of 0.83, a current ratio of 4.35 and a quick ratio of 2.83. The business has a fifty day simple moving average of $206.89 and a 200 day simple moving average of $189.75. Texas Instruments has a 1 year low of $152.73 and a 1 year high of $258.80. The company has a market capitalization of $249.81 billion, a PE ratio of 50.25, a price-to-earnings-growth ratio of 2.12 and a beta of 1.01.

Texas Instruments Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Tuesday, May 5th will be issued a dividend of $1.42 per share. 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 payout ratio is currently 104.41%.

Key Headlines Impacting Texas Instruments

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

Insiders Place Their Bets

In other Texas Instruments news, VP Hagop H. Kozanian sold 6,843 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $225.95, for a total transaction of $1,546,175.85. Following the transaction, the vice president owned 75,425 shares in the company, valued at $17,042,278.75. This trade represents a 8.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Rafael R. Lizardi sold 7,096 shares of the business’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $230.78, for a total value of $1,637,614.88. Following the completion of the transaction, the chief financial officer directly owned 85,454 shares of the company’s stock, valued at approximately $19,721,074.12. This trade represents a 7.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 114,284 shares of company stock worth $25,531,935. 0.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Texas Instruments

Several hedge funds and other institutional investors have recently made changes to their positions in TXN. Strategic Wealth Investment Group LLC bought a new position in Texas Instruments in the second quarter valued at approximately $25,000. Advocate Investing Services LLC acquired a new stake in shares of Texas Instruments in the 4th quarter valued at $25,000. Quattro Advisors LLC bought a new position in shares of Texas Instruments in the 4th quarter valued at $27,000. Osterweis Capital Management Inc. raised its holdings in shares of Texas Instruments by 1,810.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 191 shares of the semiconductor company’s stock worth $40,000 after buying an additional 181 shares in the last quarter. Finally, Miller Capital Partners Inc. acquired a new position in shares of Texas Instruments during the 4th quarter worth $34,000. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts have commented on TXN shares. Wells Fargo & Company boosted their price target on shares of Texas Instruments from $185.00 to $215.00 and gave the stock an “equal weight” rating in a research report on Wednesday, January 28th. Barclays set a $175.00 target price on Texas Instruments in a research report on Wednesday, January 28th. Sanford C. Bernstein reiterated a “market perform” rating and set a $205.00 target price on shares of Texas Instruments in a report on Wednesday, January 28th. BNP Paribas Exane upgraded Texas Instruments from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 22nd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Texas Instruments in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Texas Instruments presently has an average rating of “Hold” and a consensus target price of $233.29.

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.