Texas Instruments Reports Q3 2026 Results: Revenue Up 28% YoY to $6.06B

Executive Summary

On October 21, 2026, Texas Instruments Incorporated (NASDAQ: TXN) filed a Form 8-K under Item 2.02 detailing its financial results for the third quarter ended September 30, 2026. The company demonstrated robust operational recovery and broad-based growth across key end markets, posting double-digit sequential and year-over-year revenue expansion.

Key Financial Highlights

• Revenue: Reported at $6,055 million, representing a 28% increase compared to $4,742 million in Q3 2025 and an 11% sequential gain. Management highlighted continued broad strength across the industrial, automotive, and data center markets.
• Operating Profit: Rose 73% year-over-year to $2,874 million (47.5% operating margin), up from $1,663 million in the prior-year period.
• Net Income & Diluted EPS: Net income grew 78% YoY to $2,425 million. Diluted earnings per share came in at $2.62, up 77% from $1.48 in Q3 2025, which included a $0.01 per-share reduction not factored into original guidance.
• Cash Generation & Capital Allocation:
  • Trailing 12-month (TTM) cash flow from operations reached $9.896 billion (+43% YoY).
  • Trailing 12-month free cash flow reached $8.422 billion, up 249% YoY, representing 40.6% of revenue.
  • Over the past 12 months, TI invested $4.0 billion in R&D and SG&A, committed $2.6 billion to capital expenditures, and returned $5.81 billion to shareholders through dividends ($5.174 billion) and share repurchases ($636 million).

Forward Guidance (Q4 2026)

• Revenue: Expected in the range of $5.80 billion to $6.30 billion.
• Diluted EPS: Projected between $2.45 and $2.79.

Market & Trading Implications

The results point to an accelerating semiconductor upcycle led by industrial and automotive demand alongside strong data center tailwinds. High conversion into free cash flow and continued aggressive capital returns provide strong fundamental support for TXN shares.