EarningsQ3 2026 Earnings Report
MX:TXN Q3 2026 EPS Results
Actual EPS$49.22
Consensus EPS$45.76
Beat/MissBeat by +$3.46
One Year Ago EPS$27.80
MX:TXN Q3 2026 Revenue Results
Actual Revenue$113.75B
Expected Revenue$111.62B
Beat/MissBeat by +$2.14B
YoY Revenue Growth+27.69%
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeAfter Close
Conference CallWednesday, October 21, 2026
MX:TXN Upcoming Earnings
Texas Instruments's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TXN Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by 28% year-over-year revenue growth, broad-based demand, major gains in industrial and data center markets, a 73% increase in operating profit, substantially higher free cash flow, and continued investment in manufacturing capacity. The main challenges were higher lead times, supply tightness among OSAT partners and equipment suppliers, limited automotive customer inventories, a decline in the other segment, and a still-delayed embedded recovery. Overall, the highlights significantly outweighed the lowlights.Company Guidance
Strong Third-Quarter Revenue Growth
Third-quarter revenue was $6.1 billion, increasing 11% sequentially and 28% year over year. Analog revenue grew 32% year over year, while Embedded Processing revenue grew 21%.
Broad-Based End-Market and Regional Demand
Revenue growth was reported across all end markets and regions, with secular semiconductor content growth continuing alongside a strong cyclical recovery.
Industrial Market Reached a New Peak
Industrial revenue increased more than 40% year over year and about 10% sequentially, reaching the same level as the third quarter of 2022 and creating a new peak. Management cited higher semiconductor content per system, portfolio expansion, and growth in aerospace and defense, energy infrastructure, test and measurement, robotics, and industrial automation.
Automotive Demand Improved
Automotive revenue increased mid-teens year over year and about 10% sequentially. Management said demand came in strong in the third quarter, with China and the U.S. averaging up overall growth.
Data Center Growth Accelerated
Data center revenue increased about 95% year over year and about 20% sequentially, representing approximately 13% of third-quarter revenue. Management said demand continued to grow, with opportunities across power density, cooling, efficiency, telemetry, and higher-voltage applications.
Personal Electronics and Communications Equipment Improved Sequentially
Personal electronics revenue was about flat year over year but grew upper-single-digits sequentially. Communications Equipment revenue grew both year over year and sequentially.
Strong Profitability Performance
Gross profit was $3.9 billion, or 64% of revenue, with gross profit margin increasing 280 basis points sequentially. Operating profit was $2.9 billion, or 47% of revenue, up 73% from the year-ago quarter.
Net Income and Earnings Per Share
Net income was $2.4 billion, or $2.62 per share. Earnings per share included a $0.01 reduction from discrete tax items that was not included in the original guidance.
Significant Free Cash Flow Generation
Cash flow from operations was $3.4 billion in the quarter and $9.9 billion on a trailing 12-month basis. Trailing-12-month free cash flow was $8.4 billion, up from $2.4 billion in the third quarter of 2025, and included $1.6 billion of CHIPS Act incentives.
Increased Dividend and Shareholder Returns
TI increased its dividend by 7% to $1.52 per share, marking its 23rd consecutive year of dividend increases. The company paid $1.3 billion in dividends during the quarter and returned $5.8 billion to owners over the past 12 months.
Strong Balance Sheet and Debt Management
Cash and short-term investments totaled $8.1 billion at the end of the third quarter. TI repaid $500 million of debt during the quarter; total debt outstanding was $13.65 billion with a weighted average coupon of 4.11%.
Manufacturing Capacity Positioned for Growth
Management said prior investments positioned TI to ramp factories and support revenue growth. The company has clean-room capacity, long-lead-time investments, and reserved equipment slots for 2027 and beyond, allowing it to adjust tool installations based on demand.
Continued Capital Investment
TI expects 2026 capital expenditures to be between $2 billion and $3 billion, potentially toward the higher end of that range. The company is continuing to invest in front-end and back-end capacity, including its Malaysia site and Lehi facilities.
Embedded Processing Capacity and Margin Opportunity
Lehi 1 and Lehi 2 are supporting Embedded Processing growth, with additional clean-room capacity available and the Lehi fab 2 shell in the final stages of completion. Management said embedded gross margins had improved by about a couple of points per quarter recently and about 10 points year over year.
Pricing Improved in the Second Half
After a flat pricing environment year over year in the first half of 2026, TI saw some pricing movement, mainly on the analog side, in the second half of 2026. Management is engaged with customers on 2027 pricing discussions tied to guaranteed supply.
Positive Fourth-Quarter Outlook
TI expects fourth-quarter revenue in the range of $5.8 billion to $6.3 billion and earnings per share in the range of $2.45 to $2.79. Management characterized the outlook as above seasonal, driven by industrial, automotive, and data center demand, and expects a fourth-quarter effective tax rate of about 13%.
Growing EV and China Opportunity
The hybrid electric and powertrain systems sector grew about twice as fast as the overall automotive business. Management said China and the U.S. drove automotive growth, and that China automotive and EV customers are using TI products with higher content and higher TI share.
MX:TXN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed