Texas Instruments (NASDAQ:TXN) Issues Quarterly Earnings Results

Texas Instruments (NASDAQ:TXN) announced its quarterly earnings data on Wednesday. The semiconductor company reported $2.14 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23, FiscalAI reports. The company had revenue of $5.46 billion during the quarter, compared to the consensus estimate of $5.24 billion. Texas Instruments had a return on equity of 32.49% and a net margin of 29.11%. 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 Trading Up 1.0%

Shares of NASDAQ TXN traded up $2.89 during midday trading on Wednesday, hitting $294.19. The stock had a trading volume of 10,670,744 shares, compared to its average volume of 8,157,201. The company’s 50-day simple moving average is $302.23 and its 200 day simple moving average is $245.54. The firm has a market cap of $267.74 billion, a P/E ratio of 50.38, a price-to-earnings-growth ratio of 1.42 and a beta of 1.32. Texas Instruments has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The company has a debt-to-equity ratio of 0.77, a current ratio of 4.46 and a quick ratio of 2.94.

Texas Instruments Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st will be paid a $1.42 dividend. This represents a $5.68 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, July 31st. Texas Instruments’s dividend payout ratio (DPR) is 97.26%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on TXN shares. Wolfe Research reissued an “outperform” rating and issued a $315.00 target price on shares of Texas Instruments in a research note on Thursday, April 23rd. Zacks Research lowered Texas Instruments from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. Morgan Stanley lifted their price objective on Texas Instruments from $221.00 to $230.00 and gave the company an “underweight” rating in a report on Monday. UBS Group boosted their target price on shares of Texas Instruments from $295.00 to $350.00 and gave the company a “buy” rating in a research note on Monday, June 29th. Finally, KeyCorp increased their target price on shares of Texas Instruments from $325.00 to $390.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Thirteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Texas Instruments presently has a consensus rating of “Hold” and a consensus target price of $285.44.

Insider Transactions at Texas Instruments

In other Texas Instruments news, VP Mohammad Yunus sold 51,098 shares of Texas Instruments stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $270.44, for a total transaction of $13,818,943.12. Following the completion of the sale, the vice president owned 52,856 shares of the company’s stock, valued at approximately $14,294,376.64. The trade was a 49.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Haviv Ilan sold 20,000 shares of the company’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $280.32, for a total value of $5,606,400.00. Following the completion of the sale, the chief executive officer owned 204,339 shares of the company’s stock, valued at $57,280,308.48. This represents a 8.92% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 303,475 shares of company stock valued at $85,666,638. 0.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Texas Instruments

Hedge funds and other institutional investors have recently made changes to their positions in the company. Advocate Investing Services LLC acquired a new position in Texas Instruments in the fourth quarter valued at about $25,000. Strategic Wealth Investment Group LLC acquired a new stake in Texas Instruments during the 2nd quarter worth approximately $25,000. Quattro Advisors LLC acquired a new stake in Texas Instruments during the 4th quarter worth approximately $27,000. Miller Capital Partners Inc. bought a new position in Texas Instruments in the fourth quarter valued at approximately $34,000. Finally, Osterweis Capital Management Inc. boosted its holdings in shares of 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 during the period. 84.99% of the stock is owned by institutional investors.

Trending Headlines about Texas Instruments

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

• Positive Sentiment: Texas Instruments reported second-quarter EPS of $2.14, ahead of the $1.91 consensus, with revenue of $5.46 billion topping estimates of $5.24 billion. MarketBeat earnings report
• Positive Sentiment: The company raised its third-quarter outlook, guiding for EPS of 2.230-2.570 versus 2.110 expected and revenue of $5.7 billion-$6.2 billion versus $5.5 billion expected. PR Newswire release
• Positive Sentiment: Reuters reported that Texas Instruments forecast revenue above estimates, citing a recovery in industrial chip demand and stronger AI data center chip momentum. Reuters article
• Positive Sentiment: Earlier analyst optimism also helped sentiment, including a Susquehanna price-target increase to $340 ahead of the report, reinforcing expectations for a solid quarter. Yahoo Finance article

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.