Texas Instruments Q3 2026 Earnings Beat Estimates

Texas Instruments reported stronger-than-expected third-quarter results and raised its outlook on Oct. 21, 2026, citing broad industrial, automotive, and data-center demand that boosted profits and cash flow.

Quarter Results and Guidance

Texas Instruments (TXN) reported Q3 2026 revenue of $6.1 billion, net income of $2.4 billion, and diluted earnings per share of $2.62 for the three months ended Sept. 30, 2026. Revenue rose 28.0% year over year and 11.0% sequentially.

The company issued Q4 2026 guidance calling for revenue between $5.8 billion and $6.3 billion and diluted EPS of $2.45 to $2.79 for the quarter ending Dec. 31, 2026. These ranges exceeded analyst estimates cited in market coverage.

Cash Flow, Returns, and Segment Demand

Trailing 12-month cash flow from operations reached $9.9 billion, up 43.0% from $6.9 billion a year earlier. Free cash flow rose to $8.4 billion from $2.4 billion in the prior period. Over the same period, Texas Instruments spent $4.0 billion on research and development plus selling, general, and administrative expenses, invested $2.6 billion in capital expenditures, and returned $5.8 billion to shareholders.

Management attributed part of the cash flow improvement to 300mm wafer production, linking manufacturing scale to stronger cash generation. The company’s free cash flow and recent distributions support continued shareholder returns and capital allocation flexibility.

Segment revenue highlighted the quarter’s strength: analog revenue totaled $4.9 billion, up 32.0% year over year, while Embedded Processing revenue rose 21.0% to $858 million. Management cited broad growth across industrial, automotive, and data-center markets as key drivers behind the performance.