Texas Instruments Reports 28% Revenue Growth to $6.06 Billion in Q3 2026

Texas Instruments Incorporated reported significant financial growth in its latest quarterly filing, with revenue reaching $6.06 billion for the third quarter of 2026, a 28% increase from $4.74 billion in the same period last year. The company's net income also saw a substantial rise, climbing to $2.43 billion, compared to $1.36 billion in the prior year, resulting in earnings per share (EPS) of $2.62, up from $1.48. For the first nine months of 2026, revenue totaled $16.34 billion, a 23% increase from $13.26 billion in 2025, while net income rose to $5.95 billion from $3.84 billion.

The financial performance reflects a strong demand across Texas Instruments' product segments, particularly in Analog and Embedded Processing. The Analog segment, which includes Power and Signal Chain products, generated $4.91 billion in revenue, a 32% increase year-over-year, while the Embedded Processing segment reported $858 million, up 21%. The overall gross profit margin improved to 64.2% from 57.4% due to higher revenue and effective cost management, despite increased manufacturing costs associated with planned capacity expansions.

In terms of strategic developments, Texas Instruments announced its intention to acquire Silicon Labs for approximately $7.5 billion, with the transaction expected to close in the first half of 2027, pending regulatory approvals. The company incurred $7 million in acquisition charges during the third quarter and $41 million for the first nine months of 2026 related to this acquisition. Additionally, Texas Instruments has continued to invest in research and development, allocating $1.57 billion in R&D expenses for the first nine months of 2026, reflecting a commitment to innovation and product development.

Operationally, Texas Instruments reported a total cash position of $8.14 billion as of September 30, 2026, an increase of $3.26 billion from the end of 2025. The company maintained a strong inventory management strategy, with inventory levels decreasing to $4.67 billion from $4.80 billion at the end of the previous year. Days sales outstanding improved slightly to 39 days, indicating efficient collection practices. The company also announced a 7% increase in its quarterly cash dividend to $1.52 per share, marking 23 consecutive years of dividend increases.

Looking ahead, Texas Instruments expressed optimism about continued revenue growth driven by strong demand across various end markets, including industrial, automotive, and data centers. The company plans to maintain its focus on maximizing long-term free cash flow per share and expects to benefit from the CHIPS Act incentives, which include a 35% investment tax credit on qualifying manufacturing investments. Texas Instruments anticipates ongoing investments in manufacturing capacity to support future growth and meet customer demand.