Texas Instruments (TXN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $6.055B, up 28% YoY and 11% sequentially; net income was $2.425B and diluted EPS was $2.62, including a 1-cent reduction from discrete tax items.

• Demand growth broadened across end markets and regions, led by industrial, automotive and data center, amid secular content growth and cyclical recovery.

• Manufacturing investments and existing inventory positioned operations to ramp supply as demand strengthened; management emphasized long-term free cash flow per share growth.

Financial highlights

• Q3 gross profit was $3.887B, up 43% YoY; operating profit rose 73% to $2.874B, with operating expenses of $1.006B.

• 9M revenue increased 23% YoY to $16.343B; gross profit rose 32% to $10.038B and net income grew to $5.950B from $3.838B.

• 9M diluted EPS was $6.44 versus $4.18; effective tax rates were 12% for both 9M periods and 14% for both Q3 periods.

Outlook and guidance

• Q4 revenue guidance is $5.8B-$6.3B and EPS guidance is $2.45-$2.79; expected effective tax rate is ~13%.

• Expected 2027 effective tax rate is ~13%-14%; Q4 operating expenses are expected flat to slightly up, with acquisition charges and net OI&E similar to Q3.

• Above-seasonal Q4 expectations reflect industrial, automotive and data center demand; no market-specific forecast was issued.

• 2026 capital expenditures are expected at $2B-$3B, potentially toward the high end subject to tool delivery; spending beyond 2026 depends on demand and growth expectations.

• Planned Silicon Labs acquisition closing is expected in H1 2027, subject to regulatory approvals and customary conditions; funding expected from cash on hand and debt.