Texas Instruments (NASDAQ:TXN) Shares Gap Down – What’s Next?

Texas Instruments Incorporated (NASDAQ:TXN)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $294.19, but opened at $277.30. Texas Instruments shares last traded at $284.4690, with a volume of 2,285,128 shares.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Texas Instruments beat Q2 estimates, reporting EPS of $2.14 on revenue of $5.46 billion, with revenue up 22.8% year over year and profit rising sharply. TI reports second quarter 2026 financial results and shareholder returns
• Positive Sentiment: Management raised third-quarter guidance above Wall Street forecasts, signaling continued strength in industrial, data center, automotive, and AI-related demand. Texas Instruments forecasts quarterly revenue above estimates
• Positive Sentiment: Analysts turned more constructive ahead of earnings, with KeyCorp raising its price target to $400 and reiterating an overweight view, reflecting confidence in TXN’s growth outlook. KeyCorp raises Texas Instruments price target
• Neutral Sentiment: Commentary around the earnings call pointed to a broad demand recovery and capacity investments that could support growth, but these factors were largely in line with the upbeat results already delivered. Texas Instruments Q2 Earnings Call Signals Broad Demand Recovery
• Negative Sentiment: Despite the strong report, TXN shares slipped in premarket/after-hours trading as investors reacted cautiously, suggesting expectations were already very high after the recent rally. Texas Instruments tops second-quarter forecasts but shares slip despite strong outlook

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Robert W. Baird set a $385.00 price target on shares of Texas Instruments in a report on Thursday. Zacks Research downgraded Texas Instruments from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Benchmark upped their price target on Texas Instruments from $315.00 to $360.00 and gave the company a “buy” rating in a research report on Thursday. Rosenblatt Securities increased their price objective on Texas Instruments from $240.00 to $330.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. Finally, JPMorgan Chase & Co. lifted their price objective on Texas Instruments from $227.00 to $280.00 and gave the stock an “overweight” rating in a research report on Thursday, April 23rd. Fourteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, Texas Instruments currently has a consensus rating of “Hold” and a consensus price target of $306.00.

Texas Instruments Trading Down 3.7%

The company has a current ratio of 4.46, a quick ratio of 2.94 and a debt-to-equity ratio of 0.77. The company has a market cap of $257.76 billion, a PE ratio of 48.41, a PEG ratio of 1.49 and a beta of 1.32. The stock has a 50 day moving average price of $301.99 and a 200 day moving average price of $246.39.

Texas Instruments (NASDAQ:TXN) last posted its quarterly earnings data on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23. The business had revenue of $5.46 billion during the quarter, compared to the consensus estimate of $5.26 billion. Texas Instruments had a return on equity of 32.49% and a net margin of 29.11%.The firm’s quarterly revenue was up 22.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.41 earnings per share. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. Sell-side analysts predict that Texas Instruments Incorporated will post 7.69 EPS for the current fiscal year.

Texas Instruments Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st will be issued a dividend of $1.42 per share. This represents a $5.68 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, July 31st. Texas Instruments’s dividend payout ratio (DPR) is presently 97.26%.

Insider Transactions at Texas Instruments

In other Texas Instruments news, Director Carrie Smith Cox sold 8,838 shares of Texas Instruments stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $306.41, for a total transaction of $2,708,051.58. Following the completion of the transaction, the director owned 37,626 shares in the company, valued at approximately $11,528,982.66. The trade was a 19.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Rafael R. Lizardi sold 47,734 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $308.10, for a total value of $14,706,845.40. Following the completion of the sale, the chief financial officer directly owned 85,485 shares in the company, valued at $26,337,928.50. This trade represents a 35.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 303,475 shares of company stock worth $85,666,638. Company insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On Texas Instruments

A number of hedge funds have recently bought and sold shares of TXN. State Street Corp grew its holdings in shares of Texas Instruments by 0.5% during the third quarter. State Street Corp now owns 43,555,112 shares of the semiconductor company’s stock valued at $8,002,381,000 after buying an additional 230,098 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in Texas Instruments by 6.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 24,288,604 shares of the semiconductor company’s stock valued at $4,213,832,000 after acquiring an additional 1,517,420 shares in the last quarter. Geode Capital Management LLC boosted its stake in Texas Instruments by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 22,865,312 shares of the semiconductor company’s stock valued at $3,952,933,000 after purchasing an additional 248,515 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Texas Instruments by 10.6% in the 4th quarter. Invesco Ltd. now owns 18,184,514 shares of the semiconductor company’s stock worth $3,154,831,000 after purchasing an additional 1,749,513 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of Texas Instruments by 33.6% in the 1st quarter. Bank of New York Mellon Corp now owns 16,402,834 shares of the semiconductor company’s stock worth $3,184,446,000 after purchasing an additional 4,129,601 shares in the last quarter. Institutional investors own 84.99% of the company’s stock.

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.