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TI reports third quarter 2026 financial results and shareholder returns

By PR Newswire | October 21, 2026, 4:01 PM

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

Texas Instruments Logo. (PRNewsFoto/Texas Instruments Incorporated)

 

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