Texas Instruments (NASDAQ:TXN) Issues Quarterly Earnings Results

Texas Instruments (NASDAQ:TXN) posted its quarterly earnings data on Tuesday. The semiconductor company reported $1.27 EPS for the quarter, missing the consensus estimate of $1.29 by ($0.02), FiscalAI reports. The firm had revenue of $4.42 billion for the quarter, compared to the consensus estimate of $4.44 billion. Texas Instruments had a return on equity of 30.41% and a net margin of 29.21%.During the same quarter last year, the firm earned $1.28 EPS. Texas Instruments updated its Q1 2026 guidance to 1.220-1.480 EPS.

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

• Q4 revenue was $4.4 billion (down 7% sequentially, up 10% YoY) and management guided Q1 revenue of $4.32–$4.68 billion with EPS of $1.22–$1.48, noting the guide is slightly above typical seasonality.
• Management reorganized end markets and said industrial, automotive, and data center now comprised about 75% of 2025 revenue, with data center up ~70% YoY, signaling a strategic tilt toward faster-growing, higher-content markets.
• Cash generation and capital returns were strong — Q4 operating cash flow was $2.3 billion, 2025 free cash flow was $2.9 billion (up 96% YoY), and the company returned $6.5 billion to shareholders over the past 12 months while raising the dividend 4%.
• Manufacturing investment and capacity progress: TI said it is nearing the end of a multi-year elevated CapEx cycle, expects $2–$3 billion CapEx in 2026, reported Sherman and Lehi fabs ahead/on schedule, and highlighted the 35% ITC and up to $1.6 billion of direct funding as offsets.
• Profitability and end-market weaknesses — Q4 EPS included a $0.06 reduction from a non-cash goodwill impairment in the Other segment and tax items, while personal electronics and communications equipment declined significantly, posing downside risk for those businesses.

Texas Instruments Trading Up 0.0%

TXN opened at $196.63 on Wednesday. The stock has a market capitalization of $178.66 billion, a PE ratio of 35.95, a P/E/G ratio of 3.09 and a beta of 1.00. Texas Instruments has a one year low of $139.95 and a one year high of $221.69. The business’s 50 day moving average price is $179.44 and its 200 day moving average price is $182.27. The company has a debt-to-equity ratio of 0.81, a quick ratio of 2.90 and a current ratio of 4.45.

Texas Instruments Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Investors of record on Friday, January 30th will be issued a $1.42 dividend. The ex-dividend date is Friday, January 30th. This represents a $5.68 dividend on an annualized basis and a yield of 2.9%. Texas Instruments’s dividend payout ratio is currently 103.84%.

More Texas Instruments News

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

• Positive Sentiment: Management issued Q1 revenue guidance with the midpoint above Street expectations, which traders read as a sign of demand stabilization and drove a positive after‑hours reaction. Texas Instruments rises as Q1 guidance tops expectations at midpoint
• Positive Sentiment: Several analysts raised price targets ahead of or after the print (Stifel, Susquehanna), citing early signs of industrial restocking and a recovering end‑market outlook for analog chips. These upgrades support investor confidence in near‑term demand improvement. Stifel Sees Signs of a Demand Recovery for Texas Instruments (TXN)
• Neutral Sentiment: Revenue rose to $4.42B and net income was $1.16B, showing sales strength but mixed margin dynamics; these topline gains temper concern even as margins compressed slightly. Texas Instruments Sales Rise, But Profit Slips
• Neutral Sentiment: Company filed its Q4 press release and will host a conference call; the release confirms the headline numbers and the management commentary investors will parse on the call. TI reports Q4 2025 and 2025 financial results and shareholder returns
• Negative Sentiment: EPS of $1.27 and revenue of $4.42B missed consensus modestly (EPS ≈ $1.28; revenue ≈ $4.44B), leaving a small execution gap versus Street expectations that could constrain upside until guidance is proven. Texas Instruments (TXN) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Macro exposure to China remains a watch point; several reports flagged China demand as a wildcard that could dampen follow‑through even if guidance is initially encouraging. Texas Instruments Reports Earnings Today. China Is a Wildcard.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on TXN shares. The Goldman Sachs Group downgraded shares of Texas Instruments from a “buy” rating to a “sell” rating and lowered their price objective for the stock from $200.00 to $156.00 in a research note on Monday, December 15th. UBS Group set a $245.00 price target on Texas Instruments and gave the company a “buy” rating in a research report on Wednesday, October 22nd. Truist Financial lifted their price objective on shares of Texas Instruments from $175.00 to $195.00 and gave the company a “hold” rating in a report on Friday, December 19th. Bank of America cut Texas Instruments from a “neutral” rating to an “underperform” rating and cut their price objective for the company from $208.00 to $190.00 in a research report on Monday, October 13th. Finally, Barclays reissued an “underweight” rating and set a $140.00 target price on shares of Texas Instruments in a research note on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have assigned a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $195.12.

Insider Buying and Selling

In other Texas Instruments news, VP Christine Witzsche sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, November 13th. The stock was sold at an average price of $164.31, for a total value of $164,310.00. Following the sale, the vice president owned 20,821 shares of the company’s stock, valued at $3,421,098.51. The trade was a 4.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Ronald Kirk sold 9,990 shares of the business’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $162.33, for a total transaction of $1,621,676.70. Following the sale, the director owned 14,937 shares in the company, valued at $2,424,723.21. This trade represents a 40.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.57% of the stock is owned by insiders.

Institutional Investors Weigh In On Texas Instruments

Institutional investors have recently added to or reduced their stakes in the business. Centaurus Financial Inc. lifted its stake in shares of Texas Instruments by 21.9% in the 3rd quarter. Centaurus Financial Inc. now owns 3,154 shares of the semiconductor company’s stock valued at $580,000 after acquiring an additional 567 shares during the last quarter. Sunbelt Securities Inc. increased its holdings in Texas Instruments by 23.9% in the 3rd quarter. Sunbelt Securities Inc. now owns 3,801 shares of the semiconductor company’s stock worth $698,000 after purchasing an additional 732 shares in the last quarter. Advisory Services Network LLC raised its position in Texas Instruments by 2.2% in the third quarter. Advisory Services Network LLC now owns 16,687 shares of the semiconductor company’s stock valued at $3,066,000 after purchasing an additional 353 shares during the last quarter. Financial Engines Advisors L.L.C. boosted its stake in shares of Texas Instruments by 18.8% during the third quarter. Financial Engines Advisors L.L.C. now owns 2,373 shares of the semiconductor company’s stock valued at $436,000 after purchasing an additional 375 shares in the last quarter. Finally, Aureus Asset Management LLC grew its holdings in shares of Texas Instruments by 43.8% during the third quarter. Aureus Asset Management LLC now owns 35,127 shares of the semiconductor company’s stock worth $6,454,000 after purchasing an additional 10,704 shares during the last quarter. Hedge funds and other institutional investors own 84.99% of the company’s stock.

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.