Texas Instruments (TXN) Q3 2026 Financial Results Summary
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Texas Instruments (TXN) Q3 2026: Revenue and Earnings Surge — Strong Quarter for Shareholders
Texas Instruments Incorporated (TI) reported impressive financial results for the third quarter of 2026, showcasing significant growth compared to the previous year. The company achieved revenue of $6.06 billion, marking an increase of $1.31 billion or 28% year-over-year from $4.74 billion in Q3 2025. This robust performance was driven by broad growth across industrial, automotive, and data center sectors.
Key Financial Metrics
- Revenue: $6.06 billion (up $1.31 billion or +28% YoY)
- Net Income: $2.43 billion (up $1.06 billion or +78% YoY)
- Earnings Per Share (EPS): $2.62 (up $1.14 or +77% YoY)
- Operating Profit: $2.87 billion (up $1.21 billion or +73% YoY)
- Cash Flow from Operations: $3.42 billion
- Free Cash Flow: $2.96 billion (up $1.54 billion or +249% YoY)
This quarter's results are a clear indication of TI's strong operational performance and effective management strategies, making it a favorable quarter for shareholders. The substantial increases in both revenue and net income reflect the company's ability to capitalize on market demand and operational efficiencies.
Shareholder Returns and Guidance
TI returned $5.8 billion to shareholders over the past 12 months, which included $1.3 billion in dividends paid and $48 million in stock repurchases. The dividend declared per common share increased to $1.42, up from $1.36 in the same quarter last year, demonstrating TI's commitment to returning value to its shareholders.
Looking ahead, TI provided guidance for the fourth quarter, projecting revenue in the range of $5.80 billion to $6.30 billion and EPS between $2.45 and $2.79. This guidance suggests continued confidence in the company's growth trajectory, although it indicates a potential slight decline from the current quarter's performance.
Analyst Opinion
This quarter's results are undoubtedly positive for shareholders. The significant year-over-year growth in revenue, net income, and EPS underscores TI's strong market position and operational effectiveness. The increase in dividends further enhances shareholder value, reflecting the company's robust cash generation capabilities.
The substantial free cash flow of $2.96 billion, representing 40.6% of revenue, highlights TI's strong liquidity and ability to invest in future growth while returning capital to shareholders. The company's focus on R&D and capital expenditures, totaling $4.0 billion and $2.6 billion respectively over the past year, positions it well for sustained innovation and competitive advantage.
Forward Catalysts
Investors should closely monitor TI's performance in the upcoming quarter, particularly in light of the guidance provided. Key areas to watch include:
- Continued demand in the industrial and automotive sectors, which have been significant growth drivers.
- The impact of TI's investments in R&D and capital expenditures on future product offerings and market share.
- The company's ability to maintain or improve profit margins amidst competitive pressures and potential fluctuations in semiconductor demand.
Overall, TI's strong performance in Q3 2026 sets a positive tone for the future, and investors should remain optimistic about the company's growth prospects.
Note: All amounts in the following tables are in millions.
| Consolidated Statements of Income | September 30, 2026 | September 30, 2025 |
|---|---|---|
| Revenue | $6,055 | $4,742 |
| Cost of revenue | 2,168 | 2,019 |
| (COR) | ||
| Gross profit | 3,887 | 2,723 |
| Research and development (R&D) | 530 | 518 |
| Selling, general and administrative (SG&A) | 476 | 457 |
| Acquisition charges | 7 | — |
| Restructuring charges/other | — | 85 |
| Operating profit | 2,874 | 1,663 |
| Other income (expense), net | 72 | 62 |
| Interest and debt expense | 141 | 141 |
| Income before income taxes | 2,805 | 1,584 |
| Provision for income taxes | 380 | 220 |
| Net income | $2,425 | $1,364 |
| Diluted earnings per common share | $2.62 | $1.48 |
| Average shares outstanding: Basic | 914 | 909 |
| Diluted | 921 | 914 |
| Cash dividends declared per common share | $1.42 | $1.36 |
| Consolidated Balance Sheets | September 30, 2026 | September 30, 2025 |
|---|---|---|
| Assets: Current assets | ||
| Cash and cash equivalents | $4,211 | $3,311 |
| Short-term investments | 3,931 | 1,875 |
| Accounts receivable, net of allowances | 2,620 | 2,062 |
| Raw materials | 497 | 431 |
| Work in process | 2,482 | 2,460 |
| Finished goods | 1,693 | 1,938 |
| Inventories | 4,672 | 4,829 |
| Prepaid expenses and other current assets | 1,446 | 1,799 |
| Total current assets | 16,880 | 13,876 |
| Property, plant and equipment at cost | 18,072 | 17,314 |
| Accumulated depreciation | -6,239 | -4,966 |
| Property, plant and equipment | 11,833 | 12,348 |
| Goodwill | 4,330 | 4,362 |
| Deferred tax assets | 1,054 | 1,089 |
| Capitalized software licenses | 301 | 237 |
| Overfunded retirement plans | 320 | 251 |
| Other long-term assets | 2,121 | 2,841 |
| Total assets | $36,839 | $35,004 |
| Liabilities and stockholders' equity: Current liabilities | ||
| Current portion of long-term debt | 650 | 500 |
| Accounts payable | 837 | 779 |
| Accrued compensation | 675 | 724 |
| Income taxes payable | 60 | 79 |
| Accrued expenses and other liabilities | 795 | 1,036 |
| Total current liabilities | 3,017 | 3,118 |
| Long-term debt | 12,905 | 13,546 |
| Underfunded retirement plans | 118 | 125 |
| Deferred tax liabilities | 62 | 60 |
| Other long-term liabilities | 1,552 | 1,528 |
| Total liabilities | 17,654 | 18,377 |
| Stockholders' equity: Preferred stock, $25 par value. Shares authorized – 10; none issued | — | — |
| Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741 | 1,741 | 1,741 |
| Paid-in capital | 5,202 | 4,410 |
| Retained earnings | 54,282 | 52,369 |
| Treasury common stock at cost Shares: September 30, 2026 – 827; September 30, 2025 – 832 | -41,955 | -41,744 |
| Accumulated other comprehensive income (loss), net of taxes (AOCI) | -85 | -149 |
| Total stockholders' equity | 19,185 | 16,627 |
| Total liabilities and stockholders' equity | $36,839 | $35,004 |
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