TI reports third quarter 2026 financial results and shareholder returns

Trailing-12-month free cash flow rose 249%, while cash returned to shareholders fell 11%.

Rhea-AI Summary

Texas Instruments (TXN) reported third-quarter 2026 revenue of $6.06 billion, increasing from the same quarter a year earlier. Revenue rose 28% year over year and 11% sequentially. Operating profit increased 73% to $2.874 billion, net income rose 78% to $2.425 billion, and earnings per share increased 77% to $2.62. EPS included an unanticipated 1-cent reduction.

Analog revenue grew 32%, Embedded Processing revenue increased 21%, and Other revenue declined 6%. Trailing-12-month operating cash flow rose 43% to $9.896 billion; non-GAAP free cash flow reached $8.422 billion, including CHIPS Act incentive proceeds. Cash returned to shareholders declined 11% to $5.810 billion, while dividends declared per share increased to $1.42 from $1.36. TI expects fourth-quarter revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79.

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Positive

• Moderate pointQ3 revenue of $6.06 billion increased 28% year over year and 11% sequentially.
• Moderate pointQ3 operating profit of $2.874 billion rose 73% year over year.
• Moderate pointQ3 net income of $2.425 billion increased 78% year over year.
• Moderate pointQ3 EPS of $2.62 increased 77% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter outlook calls for revenue of $5.80 billion–$6.30 billion and EPS of $2.45–$2.79.
• Moderate pointTrailing-12-month operating cash flow of $9.896 billion increased 43%; Q3 generated $3.419 billion.
• Moderate pointTrailing-12-month non-GAAP free cash flow of $8.422 billion rose 249%; Q3 generated $2.956 billion.
• Moderate pointCapital expenditures declined to $2.578 billion over the trailing 12 months, from $4.817 billion.

13 minor points

• Minor pointAnalog revenue of $4.911 billion grew 32% year over year.
• Minor pointAnalog operating profit of $2.505 billion increased 69% year over year.
• Minor pointEmbedded Processing revenue of $858 million rose 21% year over year.
• Minor pointEmbedded Processing operating profit of $227 million increased 110% year over year.
• Minor pointOther operating profit of $142 million rose 106% year over year.
• Minor pointNon-GAAP free cash flow/revenue reached 40.6% over the trailing 12 months, versus 14.0%.
• Minor pointTrailing-12-month CHIPS Act incentive proceeds increased to $1.104 billion from $335 million.
• Minor pointDividends declared per share increased to $1.42 in Q3 2026 from $1.36 in Q3 2025.
• Minor pointTrailing-12-month dividends paid increased 5% to $5.174 billion.
• Minor pointDebt repayment of $500 million was completed during Q3 2026.
• Minor pointCash and equivalents rose to $4.211 billion at September 30, 2026, from $3.311 billion a year earlier.
• Minor pointShort-term investments increased to $3.931 billion at September 30, 2026, from $1.875 billion a year earlier.
• Minor pointRestructuring charges/other fell to zero in Q3 2026 from $85 million a year earlier.

Negative

• Minor pointTrailing-12-month stock repurchases declined 61% to $636 million; Q3 repurchases were $48 million.
• Minor pointOther revenue of $286 million declined 6% year over year.
• Minor pointEPS included a 1-cent reduction absent from the company's original guidance.
• Minor pointQ3 acquisition charges of $7 million compared with none a year earlier.
• Minor pointQ3 cost of revenue increased to $2.168 billion from $2.019 billion a year earlier.

3 minor points

• Minor pointQ3 research and development expense increased to $530 million from $518 million a year earlier.
• Minor pointQ3 selling, general and administrative expense increased to $476 million from $457 million a year earlier.
• Minor pointAverage diluted shares outstanding increased to 921 million in Q3 2026 from 914 million a year earlier.

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$257.97B Mkt Cap at Last Price

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Key Figures

Revenue: $6.055 billion Net income: $2.425 billion Diluted EPS: $2.62 +5 more

Revenue

$6.055 billion

Q3 2026; up 28% year over year

Net income

$2.425 billion

Q3 2026; up 78% year over year

Diluted EPS

$2.62

Q3 2026; up 77% year over year

EPS guidance reduction

1 cent

Q3 2026; reduction not included in original guidance

Revenue outlook

$5.80 billion–$6.30 billion

Q4 2026

EPS outlook

$2.45–$2.79

Q4 2026

Free cash flow

$8.422 billion

Trailing 12 months through Q3 2026; up 249% year over year

Total cash returned

$5.810 billion

Trailing 12 months through Q3 2026; down 11% year over year

Previous Earnings Reports

2 past events · Latest: Jul 22

Same Type 2 events

1. Jul 22

   Q2 earnings report

   24h Move

   -3.1%

   Revenue grew 23% year over year; Q3 outlook was revenue $5.65–$6.15 billion and EPS $2.23–$2.57.

2. Oct 21

   Q3 earnings report

   24h Move

   -5.6%

   Revenue rose 14% year over year; diluted EPS was $1.48, including a 10-cent guidance reduction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap

2 terms

gaap financial

"These non-GAAP measures are supplemental to the comparable GAAP measures."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"These non-GAAP measures are supplemental to the comparable GAAP measures."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

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Conference call at 3:30 p.m. Central time today on ti.com/ir 

DALLAS, Oct. 21, 2026 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $6.06 billion, net income of $2.43 billion and earnings per share of $2.62. Earnings per share included a 1-cent reduction that was not in the company's original guidance.

Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:

• "Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.
• "Our cash flow from operations of $9.9 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $8.4 billion.
• "Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.8 billion to owners.
• "TI's fourth quarter outlook is for revenue in the range of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79."

Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.

Earnings summary

(In millions, except per-share amounts)		Q3 2026			Q3 2025			Change
Revenue		$	6,055		$	4,742		28 %
Operating profit		$	2,874		$	1,663		73 %
Net income		$	2,425		$	1,364		78 %
Earnings per share		$	2.62		$	1.48		77 %

 

Cash generation

					Trailing 12 Months
(In millions)		Q3 2026			Q3 2026			Q3 2025			Change
Cash flow from operations		$	3,419		$	9,896		$	6,897		43 %
Free cash flow		$	2,956		$	8,422		$	2,415		249 %
Free cash flow % of revenue						40.6 %			14.0 %

 

Cash return

					Trailing 12 Months
(In millions)		Q3 2026			Q3 2026			Q3 2025			Change
Dividends paid		$	1,298		$	5,174		$	4,949		5 %
Stock repurchases		$	48		$	636		$	1,611		(61) %
Total cash returned		$	1,346		$	5,810		$	6,560		(11) %

 

 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income		For Three Months Ended September 30,
(In millions, except per-share amounts)		2026			2025
Revenue		$	6,055		$	4,742
Cost of revenue (COR)		2,168			2,019
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 (OI&E)		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
Supplemental Information (Quarterly, except as noted)
Provision for income taxes is based on the following:
Operating taxes (calculated using the estimated annual effective tax rate)		$	390		$	249
Discrete tax items		(10)			(29)
Provision for income taxes (effective taxes)		$	380		$	220
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following:
Net income		$	2,425		$	1,364
Income allocated to RSUs		(14)			(8)
Income allocated to common stock for diluted EPS		$	2,411		$	1,356

 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets		September 30,
(In millions, except par value)		2026			2025
Assets
Current assets:
Cash and cash equivalents		$	4,211		$	3,311
Short-term investments		3,931			1,875
Accounts receivable, net of allowances of ($27) and ($21)		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

 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows		For Three Months Ended September 30,
(In millions)		2026			2025
Cash flows from operating activities
Net income		$	2,425		$	1,364
Adjustments to net income:
Depreciation		555			497
Amortization of capitalized software		21			20
Stock compensation		95			93
Deferred taxes		(26)			3
Increase (decrease) from changes in:
Accounts receivable		(100)			(128)
Inventories		(67)			(17)
Prepaid expenses and other current assets		16			18
Accounts payable and accrued expenses		75			86
Accrued compensation		135			121
Income taxes payable		319			107
Changes in funded status of retirement plans		(6)			13
Other		(23)			13
Cash flows from operating activities		3,419			2,190
Cash flows from investing activities
Capital expenditures		(463)			(1,197)
Proceeds from CHIPS Act incentives		—			75
Proceeds from asset sales		—			1
Purchases of short-term investments		(1,969)			(805)
Proceeds from short-term investments		1,399			1,260
Other		46			(15)
Cash flows from investing activities		(987)			(681)
Cash flows from financing activities
Repayment of debt		(500)			—
Dividends paid		(1,298)			(1,236)
Stock repurchases		(48)			(119)
Proceeds from common stock transactions		16			125
Other		(51)			(12)
Cash flows from financing activities		(1,881)			(1,242)
Net change in cash and cash equivalents		551			267
Cash and cash equivalents at beginning of period		3,660			3,044
Cash and cash equivalents at end of period		$	4,211		$	3,311
Supplemental cash flow information
Investment tax credit (ITC) used to reduce income taxes payable		$	79		$	43
Proceeds from CHIPS Act incentives		—			75
Total cash benefit related to the CHIPS Act		$	79		$	118

 

Segment results

(In millions)		Q3 2026			Q3 2025			Change
Analog:
Revenue		$	4,911		$	3,729		32 %
Operating profit		$	2,505		$	1,486		69 %
Embedded Processing:
Revenue		$	858		$	709		21 %
Operating profit		$	227		$	108		110 %
Other:
Revenue		$	286		$	304		(6) %
Operating profit *		$	142		$	69		106 %
* Includes Acquisition charges and Restructuring charges/other

 

 

Non-GAAP financial information

This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.

We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.

Reconciliation to the most directly comparable GAAP measures is provided in the table below.

		For Three Months Ended September 30,				For 12 Months Ended September 30,
(In millions)		2026				2026			2025			Change
Cash flow from operations (GAAP) *		$	3,419			$	9,896		$	6,897		43 %
Capital expenditures		(463)				(2,578)			(4,817)
Proceeds from CHIPS Act incentives		—				1,104			335
Free cash flow (non-GAAP)		$	2,956			$	8,422		$	2,415		249 %
Revenue						$	20,766		$	17,266
Cash flow from operations as a percentage of revenue (GAAP)						47.7 %			39.9 %
Free cash flow as a percentage of revenue (non-GAAP)						40.6 %			14.0 %
* Includes cash benefits of $79 million, $469 million and $302 million from the CHIPS Act ITC used to reduce income taxes payable for the three months ended September 30, 2026, and the twelve months ended September 30, 2026 and 2025, respectively.

This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items.

Notice regarding forward-looking statements

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:

• Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies;
• Our ability to compete in products and prices in an intensely competitive industry;
• Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts;
• Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments;
• Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties;
• Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings;
• Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity;
• Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology;
• Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession;
• Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts;
• Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors;
• Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment;
• Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability;
• Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets;
• Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims;
• Our ability to make principal and interest payments on our debt when due;
• Instability in the global credit and financial markets; and
• Impairments of our non-financial assets.

For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of our most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.

TXN-G

 

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SOURCE Texas Instruments Incorporated

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Texas Instruments' Q3 2026 earnings and revenue?

Texas Instruments reported $6.06 billion in revenue and $2.62 in earnings per share for Q3 2026. Revenue increased 28% from Q3 2025, while EPS rose 77%. Net income was $2.425 billion, up 78% year over year.

What is Texas Instruments' fourth-quarter 2026 guidance?

TI expects fourth-quarter revenue of $5.80 billion to $6.30 billion and earnings per share of $2.45 to $2.79.

How does Texas Instruments calculate free cash flow?

TI calculates free cash flow as operating cash flow minus capital expenditures, plus proceeds from CHIPS Act incentives. This is a non-GAAP measure supplemental to GAAP financial measures. The calculation includes incentive proceeds rather than deducting capital expenditures alone.