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Texas Instruments beats Q3 estimates and issues strong Q4 outlook

Texas Instruments reported third-quarter revenue of $6.06 billion and guided fourth-quarter results above expectations, driven by broad demand across industrial, automotive, and data center markets.

Texas Instruments logo on a white background.
Image: @wallstengine

Texas Instruments posted third-quarter revenue of $6.06 billion, up 28% year over year and 11% sequentially, topping analyst consensus forecasts of around $5.92 billion to $5.93 billion. According to reports from Bloomberg and financial updates on social media, net income surged 78% year over year to $2.43 billion, while earnings per share came in at $2.62, ahead of Wall Street estimates of $2.41 to $2.42.[1][2][3][4][5]

The semiconductor maker's core Analog unit led top-line gains, generating $4.91 billion in revenue, a 32% increase year over year. Embedded Processing sales climbed 21% to $858 million, while the company's Other division slipped 6% to $286 million. Operating profit reached $2.87 billion, up 73% from a year earlier, despite $7 million in acquisition charges. The company also generated $2.96 billion in free cash flow during the quarter, benefiting from broad-based demand momentum across industrial, automotive, and data center sectors.[4][5]

Looking ahead to the fourth quarter, Texas Instruments forecast revenue between $5.80 billion and $6.30 billion, easily surpassing the consensus estimate of $5.73 billion. The company also projected fourth-quarter earnings per share in the range of $2.45 to $2.79, exceeding analysts' expectation of $2.30.[1][2][5]

Key facts

  • Texas Instruments reported Q3 revenue of $6.06 billion, up 28% year over year and topping consensus estimates.
  • Q3 net income climbed 78% year over year to $2.43 billion, and EPS reached $2.62 compared to estimates around $2.41-$2.42.
  • Analog segment revenue grew 32% year over year to $4.91 billion, while Embedded Processing revenue increased 21% to $858 million.
  • Q3 operating profit reached $2.87 billion, up 73% year over year, with quarterly free cash flow at $2.96 billion.
  • Texas Instruments guided Q4 revenue to between $5.80 billion and $6.30 billion, beating the $5.73 billion estimate.
  • Q4 EPS is projected between $2.45 and $2.79, above the analyst estimate of $2.30.

Sources · 5 sources

  1. TE

    Techmeme@TechmemePost on X ·

    Texas Instruments reports Q3 revenue up 28% YoY to $6.06B, above $5.93B est., net income up 78% YoY to $2.43B, and forecasts $5.8B-$6.3B in Q4, vs. $5.73B est. (@ianmking / Bloomberg) (Visit Techmeme dot com for the link and full context!)

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  2. TE

    TechmemeArticle ·

    Texas Instruments reports Q3 revenue up 28% YoY to $6.06B, above $5.93B est., net income up 78% YoY to $2.43B, and forecasts $5.8B-$6.3B in Q4, vs. $5.73B est. (Ian King/Bloomberg) Ian King / Bloomberg : Texas Instruments reports Q3 revenue up 28% YoY to $6.06B, above $5.93B est., net income up 78% YoY to $2.43B, and forecasts $5.8B-$6.3B in Q4, vs. $5.73B est. — Texas Instruments Inc., the biggest maker of analog and embedded processing chips, gave a strong revenue forecast for the current period …

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  3. TR

    TrendSpider@TrendSpiderPost on X ·

    $TXN Q3 EARNINGS DOUBLE BEAT ✅ EPS: $2.62 vs $2.41 est ✅ Sales: $6.055B vs $5.920B est ✅ https://t.co/HXPc53xoCE

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  4. QU

    Quartz@qzPost on X ·

    Texas Instruments crushes expectations as chip demand surges across industries TI posted a 78% jump in net income and 28% revenue growth, fueled by strong demand in industrial, automotive, and data center markets — a signal that the #TexasInstruments #ChipDemand #Semiconductors https://t.co/9QPN7Vdmzw

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  5. WS

    Wall St Engine@wallstenginePost on X ·

    TEXAS INSTRUMENTS $TXN Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $6.06B (Est. $5.92B) 🟢; +28% YoY 🔹 EPS: $2.62 (Est. $2.42) 🟢; +77% YoY Q4 Guide: 🔹 Revenue: $5.80B-$6.30B (Est. $5.73B) 🟢 🔹 EPS: $2.45-$2.79 (Est. $2.30) 🟢 Trailing 12 Months: 🔹 Cash Flow from Operations: $9.90B; +43% YoY 🔹 Free Cash Flow: $8.42B; 40.6% of revenue 🔹 Capital Expenditures: $2.58B 🔹 Total Cash Returned: $5.81B; -11% YoY Segment Revenue: 🔹 Analog: $4.91B; +32% YoY 🔹 Embedded Processing: $858M; +21% YoY 🔹 Other: $286M; -6% YoY Other Q3 Metrics: 🔹 Operating Profit: $2.87B; +73% YoY 🔹 Net Income: $2.43B; +78% YoY 🔹 Free Cash Flow: $2.96B Key Updates: 🔹 EPS reduction not in original guidance: 1 cent 🔹 Operating profit included $7M of acquisition charges 🔹 Discrete tax items: $10M benefit Comments: 🔸 “Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.”

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