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

Texas Instruments (NASDAQ:TXN) issued its earnings results on Wednesday. The semiconductor company reported $1.68 earnings per share for the quarter, topping the consensus estimate of $1.37 by $0.31, Zacks reports. Texas Instruments had a return on equity of 32.66% and a net margin of 29.11%.The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.85 billion. During the same quarter in the prior year, the business earned $1.23 earnings per share. The company’s revenue was up 18.6% compared to the same quarter last year. 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 Trading Up 19.4%

Shares of NASDAQ TXN opened at $282.23 on Friday. The stock’s 50 day moving average price is $208.08 and its two-hundred day moving average price is $190.39. Texas Instruments has a 52-week low of $152.73 and a 52-week high of $284.12. The stock has a market capitalization of $256.96 billion, a P/E ratio of 48.33, a PEG ratio of 2.14 and a beta of 1.01. The company has a quick ratio of 2.83, a current ratio of 4.35 and a debt-to-equity ratio of 0.83.

Texas Instruments Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Tuesday, May 5th will be paid a dividend of $1.42 per share. The ex-dividend date is Tuesday, May 5th. This represents a $5.68 annualized dividend and a yield of 2.0%. Texas Instruments’s dividend payout ratio is presently 104.41%.

Key Texas Instruments News

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

• Positive Sentiment: Q1 results beat Street estimates and TI issued upbeat Q2 guidance (EPS guidance 1.77–2.05 vs. consensus ~1.57; revenue guidance above estimates), signaling durable demand across end markets — a primary driver of the rally. Texas Instruments Q1 earnings and call
• Positive Sentiment: Data-center revenue is accelerating (reports note a ~90% increase), validating the thesis that AI/data-center buildouts are a new, sizable growth channel for TI’s analog chips. This drove strong investor enthusiasm. Texas Instruments Surges 18% as Data Center Demand Spikes 90%
• Positive Sentiment: TI announced an acquisition of Silicon Labs to add embedded wireless connectivity, bolstering its push into industrial edge and AI applications — a strategic tuck-in that expands product mix and cross-sell opportunities. Texas Instruments Buys Silicon Labs
• Positive Sentiment: Several firms raised ratings and price targets (Bank of America upgrade to Buy with $320 PT; Rosenblatt, JPMorgan, Robert W. Baird, etc., raised targets), amplifying bullish sentiment and institutional interest. BofA upgrades TXN to Buy
• Neutral Sentiment: The stock hit multi‑year/all‑time highs and market-cap expansion reflects the confluence of earnings, guidance and upgrades — momentum-driven buying can continue but raises valuation questions for some investors. TXN Soars to All-Time High, PT Hiked
• Negative Sentiment: Notable insider selling and prior large institutional position shifts were reported; while common in large caps, these could be flagged by some investors as near‑term supply pressure or profit‑taking. QuiverQuant TXN overview (insider/hedge activity)

Wall Street Analyst Weigh In

TXN has been the topic of several recent analyst reports. Morgan Stanley reiterated an “underweight” rating and issued a $180.00 price target on shares of Texas Instruments in a research note on Wednesday, January 28th. Stifel Nicolaus raised their price objective on Texas Instruments from $250.00 to $290.00 and gave the company a “buy” rating in a research note on Thursday. JPMorgan Chase & Co. raised their price objective on Texas Instruments from $227.00 to $280.00 and gave the company an “overweight” rating in a research note on Thursday. DZ Bank upgraded Texas Instruments to a “strong sell” rating in a research note on Monday, February 9th. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $205.00 price objective on shares of Texas Instruments in a research note on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $257.68.

Insider Activity

In other Texas Instruments news, VP Ahmad Bahai sold 6,500 shares of the company’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $230.79, for a total transaction of $1,500,135.00. Following the sale, the vice president owned 42,488 shares in the company, valued at $9,805,805.52. This represents a 13.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Hagop H. Kozanian sold 6,843 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $225.95, for a total value of $1,546,175.85. Following the sale, the vice president owned 75,425 shares in the company, valued at $17,042,278.75. The trade was a 8.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 114,284 shares of company stock valued at $25,531,935 over the last three months. Company insiders own 0.60% of the company’s stock.

Institutional Trading of Texas Instruments

Institutional investors and hedge funds have recently bought and sold shares of the company. Advocate Investing Services LLC acquired a new stake in Texas Instruments during the fourth quarter valued at approximately $25,000. Strategic Wealth Investment Group LLC bought a new position in shares of Texas Instruments during the second quarter valued at approximately $25,000. Quattro Advisors LLC bought a new position in shares of Texas Instruments during the fourth quarter valued at approximately $27,000. Miller Capital Partners Inc. bought a new position in shares of Texas Instruments during the fourth quarter valued at approximately $34,000. Finally, Osterweis Capital Management Inc. grew its holdings in shares of Texas Instruments by 1,810.0% during the second quarter. Osterweis Capital Management Inc. now owns 191 shares of the semiconductor company’s stock valued at $40,000 after purchasing an additional 181 shares during the last quarter. Institutional investors and hedge funds 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.