Texas Instruments Q3 Revenue Surges 28% as Chip Demand Recovers Across Industrial, Auto and Data Center Markets

Texas Instruments reported third-quarter 2026 revenue of $6.06 billion, beating the Wall Street consensus of roughly $5.92 billion and rising 28% from a year earlier and 11% sequentially. Earnings per share came in at $2.62, topping estimates of around $2.42 by $0.20, while net income reached $2.43 billion, up 78% year over year. Operating profit climbed 73% to $2.87 billion, and quarterly free cash flow hit $2.96 billion against an estimate of approximately $2.25 billion. Capital expenditures of $463 million came in well below the $650 million estimate.

CEO Haviv Ilan cited broad-based growth in industrial, automotive and data center end markets. The analog segment, TI's largest, generated $4.91 billion in revenue, up 32% year over year and ahead of estimates near $4.73 billion. Embedded processing added $858 million, up 21%. Data center revenue alone surged roughly 95% year over year and grew about 20% sequentially, according to remarks on the earnings call. Trailing 12-month cash flow from operations reached $9.9 billion, up 43%, and free cash flow over the same period was $8.42 billion, equal to 40.6% of revenue. TI returned $5.81 billion to shareholders over the trailing year, down 11%, while ending the quarter with inventory of $4.7 billion, up $67 million from the prior quarter.

For the fourth quarter, TI guided revenue in a range of $5.80 billion to $6.30 billion, with a midpoint above the $5.73 billion analyst estimate. Fourth-quarter EPS guidance of $2.45 to $2.79 also topped the $2.30 consensus. Shares ticked higher in after-hours trading following the release, extending gains from the regular session.