Texas Instruments Incorporated Q3 2026 Earnings Recap

TI’s shares fell 1.8% after earnings, a roughly flat reaction. Revenue grew across major end markets, while fourth-quarter guidance calls for revenue of $5.8 billion to $6.3 billion and EPS of $2.45 to $2.79; the transcript does not identify a specific source of disappointment.

Key Takeaways

• Third-quarter revenue was $6.1 billion, up 11% sequentially and 28% year over year. Analog grew 32% year over year and embedded processing 21%; the other segment declined 6%.
• Growth was broad-based: industrial revenue rose more than 40% year over year, automotive grew in the mid-teens, and data center increased about 95%. Personal electronics was roughly flat year over year.
• Gross margin was 64%, up 280 basis points sequentially; operating profit was $2.9 billion, or 47% of revenue. Management attributed the margin increase primarily to higher revenue, with additional benefit from pricing, product and end-market mix.
• Net income was $2.4 billion, or $2.62 per share, including a $0.01 reduction from discrete tax items not in the original guidance.
• Trailing-12-month free cash flow was $8.4 billion, including $1.6 billion of CHIPS Act incentives. Inventory was $4.7 billion, up $67 million sequentially, while inventory days fell by two to 194.