TXN US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Texas Instruments (TXN) · Q3 2026 results and valuation
Share price: $309.81 · 2026-11-11
Texas Instruments designs and manufactures semiconductors, including analog and embedded processing products, for electronics designers and manufacturers worldwide. The company operates in more than 30 countries and serves markets such as industrial, automotive, data center, and personal electronics. Source: 10-K annual report (2026-02-06)
Results Q3 2026 vs Q2 2026 · previous quarter · published 21 Oct 2026 and 22 Jul 2026
Net income up 22.5% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+22.5%
Net income vs Q2 2026
Outlook given
Net income 2.42B vs 1.98B
Revenue +10.8%
Against the same quarter last year (Q3 2025) it is +77.8%, so it is not just seasonal.
Why Against the same quarter last year (+77.8%), net income rose primarily because margins were driven by higher revenue, with analog revenue growing 32% and embedded processing growing 21% compared to the same period last year.
2 · How management spoke
Typical
More upbeat than 64% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Texas Instruments projects fourth-quarter revenue between $5.8 billion and $6.3 billion and earnings per share between $2.45 and $2.79.
Valuation
Is Texas Instruments undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −4.1% growth a year (3-year revenue growth), the model's fair value is $14.95 a share — the stock trades 1973% above it. Today's price assumes 31.5% growth a year.
Current price
$309.81
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+31.5% for 10 yrs
Fair value / share
$14.95
Buy below
$11.21
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Texas Instruments projects fourth-quarter revenue between $5.8 billion and $6.3 billion and earnings per share between $2.45 and $2.79.
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Figure
Revenue grew to $6.1 billion, an increase of 11% sequentially and 28% year-over-year.
Source quote
“Revenue was $6.1 billion, an increase of 11% sequentially, and an increase of 28% year-over-year.”
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Figure
Operating profit reached 2.9 billion dollars, representing 47 percent of revenue and increasing 73 percent from the year-ago quarter.
Source quote
“Operating profit was 2.9 billion dollars in the quarter or 47 percent of revenue and it was up 73% from the year-ago quarter.”
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Key theme
Management expects between $2 billion to $3 billion in revenue this year, potentially on the higher end depending on executive execution.
Source quote
“But you should expect somewhere between $2 billion to $3 billion this year and maybe on the higher end if we get that execu.”
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Key theme
The company plans to grow embedded LII at the rate that demand indicates.
Source quote
“But we do have LII too, as you mentioned, there to continue to grow embedded at the rate which demand will indicate.”
2 more
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Key theme
Third-quarter margins were driven by higher revenue.
Source quote
“So, yes, our margin in third quarter were really driven by higher revenue.”
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Key theme
Demand grew across all markets, sectors, and regions during the quarter.
Source quote
“But in general, the demand was growing across the board, across markets, sectors, and regions.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We will continue to strengthen these advantages through disciplined capital allocation and by focusing on the best opportunities, which we believe will enable us to continue to deliver free cash...”
“Analog revenue grew 32% year-on-year, and embedded processing grew 21%.”
“Automotive increased mid-teens year-on-year and increased about 10% sequentially.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.05B | 5.46B | +10.8% | 4.74B | +27.7% |
| Gross profit | 3.89B | 3.35B | +16.0% | 2.72B | +42.7% |
| Operating income | 2.87B | 2.31B | +24.4% | 1.66B | +72.8% |
| Net income | 2.42B | 1.98B | +22.5% | 1.36B | +77.8% |
| EPS | 2.62 | 2.14 | +22.4% | 1.48 | +77.0% |
| P/E today 36.0 | 36.3 | 45.3 | −9.0 | 33.5 | +2.8 |
Topics
Most discussed now
- Industrial increased more than 40% year-on-year and was up about 10% sequentially.
- Personal electronics was about flat year-on-year and grew upper single...
- Texas Instruments is executing to its long-term manufacturing plan, and its investments have positioned us to ramp its factories to…
- Operating expenses in the quarter were 1 billion dollars on a trailing 12-month basis.
- Texas Instruments is working closely with its customers to support them during this time of increased...
Faded since Q2 2026
- Dropped Texas Instruments plans to continue to have capacity, clean room inventory ahead of demand, so it can react or it can...
- Fading Sequentially, gross profit margin increased 340 basis points.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Texas Instruments reported third-quarter revenue of $6.06 billion, up 28% from the same quarter a year ago, with net income of $2.43 billion and earnings per share of $2.62.
- Regulation FD disclosure · SEC 8-K
Texas Instruments will increase its quarterly cash dividend by 7% from $1.42 to $1.52 per share, marking 23 consecutive years of increases.
- Results of operations · SEC 8-K
Texas Instruments reported second-quarter revenue of $5.46 billion, up 23% from the same quarter a year ago, with net income of $1.98 billion and earnings per share of $2.14.
- Director or officer change · SEC 8-K
Texas Instruments appointed Julie Knecht as senior vice president and Chief Financial Officer effective August 1, 2026, to succeed Rafael Lizardi.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Director or officer change · SEC 8-K
Senior Vice President Hagop Kozanian announced his intention to retire from Texas Instruments Incorporated effective August 31, 2026.
- Articles or bylaws amended · SEC 8-K · routine
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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fourth quarter
revenue in the range of $5.8 billion to $6.3 billion
Source quote
“Turning to our outlook for the fourth quarter, we expect TI's revenue in the range of $5.8 billion to $6.3 billion and earnings per share to be in the range of $2.45 to $2.79.”
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fourth quarter
effective tax rate to be about 13%
Source quote
“We expect our effective tax rate to be about 13% in the fourth quarter and for 2027, we expect it to be about 13% to 14%.”
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fourth quarter
OPEX to be flat to slightly up
Source quote
“For modeling, I would also share that OPEX for the fourth quarter, we're expecting to be flat to slightly up.”
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the second half
price movement on the analog side
Source quote
“And in this case, and Julie indicated in her answer, we did see some price movement, I would say, many on the analog side in the second half.”
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the second half of 2026
flat pricing environment year over year in the first half of 26
Source quote
“I would just characterize it the second half of 2026. after a flat pricing environment year over year in the first half of 26.”