Texas Instruments Q3 2026 Profit Jumps 78% as Data Center Revenue Nearly Doubles and Industrial Sales Hit Four-Year High

Texas Instruments reported third-quarter 2026 revenue of $6.06 billion, a 28% increase from a year earlier and an 11% sequential gain, while net income rose 78% to $2.43 billion. Earnings per share came in at $2.62, up from $1.48 in the same period a year ago and reduced by one cent for items outside original guidance.

The results were driven by broad gains across all major end markets. Data center revenue surged approximately 95% year over year and now represents 13% of total company revenue, with CEO Haviv Ilan telling analysts demand is "actually growing" rather than slowing. Industrial revenue reached a new peak for the first time in four years, reflecting higher semiconductor content per system, while automotive demand accelerated in Q3, with hybrid and electric powertrain systems growing at twice the rate of the overall automotive segment, led by strength in China and the US. Gross margin reached 61.4% and operating margin 42.3% in the quarter, supported by higher revenue, favorable pricing, and a strategic shift of foundry production to internal 300mm manufacturing.

For the fourth quarter, TI guided revenue of $5.80 billion to $6.30 billion and earnings per share of $2.45 to $2.79, above Wall Street consensus, with management calling for above-seasonal performance sustained by momentum in data centers, industrial and automotive markets. Full-year 2026 capital expenditure is now expected to land at the higher end of the $2 billion to $3 billion range. Trailing 12-month cash flow from operations was $9.9 billion, with free cash flow of $8.4 billion.

Analysts responded positively to the results. Stifel raised its price target to $340 from $290 while maintaining a Buy rating, Rosenblatt lifted its target to $350 from $330 with a Buy, and Susquehanna raised its target to $340 from $300, reiterating a Positive rating. Cantor Fitzgerald also disclosed a new position of 47,038 shares valued at roughly $13.2 million.