Texas Instruments (NASDAQ:TXN) Announces Earnings Results, Misses Expectations By $0.02 EPS

Texas Instruments (NASDAQ:TXN) posted its quarterly earnings data on Tuesday. The semiconductor company reported $1.27 EPS for the quarter, missing the consensus estimate of $1.29 by ($0.02), FiscalAI reports. Texas Instruments had a return on equity of 30.41% and a net margin of 29.21%.The firm had revenue of $4.42 billion for the quarter, compared to analysts’ expectations of $4.44 billion. During the same period in the previous year, the firm earned $1.28 earnings per share. Texas Instruments updated its Q1 2026 guidance to 1.220-1.480 EPS.

Here are the key takeaways from Texas Instruments’ conference call:

• Q4 revenue was $4.4 billion (down 7% sequentially, up 10% YoY) and management guided Q1 revenue of $4.32–$4.68 billion with EPS of $1.22–$1.48, noting the guide is slightly above typical seasonality.
• Management reorganized end markets and said industrial, automotive, and data center now comprised about 75% of 2025 revenue, with data center up ~70% YoY, signaling a strategic tilt toward faster-growing, higher-content markets.
• Cash generation and capital returns were strong — Q4 operating cash flow was $2.3 billion, 2025 free cash flow was $2.9 billion (up 96% YoY), and the company returned $6.5 billion to shareholders over the past 12 months while raising the dividend 4%.
• Manufacturing investment and capacity progress: TI said it is nearing the end of a multi-year elevated CapEx cycle, expects $2–$3 billion CapEx in 2026, reported Sherman and Lehi fabs ahead/on schedule, and highlighted the 35% ITC and up to $1.6 billion of direct funding as offsets.
• Profitability and end-market weaknesses — Q4 EPS included a $0.06 reduction from a non-cash goodwill impairment in the Other segment and tax items, while personal electronics and communications equipment declined significantly, posing downside risk for those businesses.

Texas Instruments Stock Performance

Shares of Texas Instruments stock opened at $196.63 on Wednesday. The company has a current ratio of 4.45, a quick ratio of 2.90 and a debt-to-equity ratio of 0.81. The stock’s fifty day moving average price is $179.44 and its 200-day moving average price is $182.27. The firm has a market cap of $178.66 billion, a P/E ratio of 35.95, a P/E/G ratio of 3.09 and a beta of 1.00. Texas Instruments has a 12 month low of $139.95 and a 12 month high of $221.69.

Texas Instruments Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 10th. Stockholders of record on Friday, January 30th will be paid a dividend of $1.42 per share. The ex-dividend date is Friday, January 30th. This represents a $5.68 annualized dividend and a dividend yield of 2.9%. Texas Instruments’s dividend payout ratio (DPR) is currently 103.84%.

Insider Transactions at Texas Instruments

In other news, VP Christine Witzsche sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, November 13th. The shares were sold at an average price of $164.31, for a total value of $164,310.00. Following the completion of the sale, the vice president owned 20,821 shares of the company’s stock, valued at approximately $3,421,098.51. This represents a 4.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ronald Kirk sold 9,990 shares of the stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $162.33, for a total transaction of $1,621,676.70. Following the transaction, the director owned 14,937 shares in the company, valued at approximately $2,424,723.21. This represents a 40.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.57% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Texas Instruments

A number of large investors have recently bought and sold shares of TXN. Brighton Jones LLC lifted its stake in shares of Texas Instruments by 33.4% during the 4th quarter. Brighton Jones LLC now owns 16,840 shares of the semiconductor company’s stock worth $3,158,000 after purchasing an additional 4,218 shares during the last quarter. Intech Investment Management LLC raised its holdings in Texas Instruments by 12.8% in the first quarter. Intech Investment Management LLC now owns 9,084 shares of the semiconductor company’s stock worth $1,632,000 after purchasing an additional 1,031 shares in the last quarter. Osterweis Capital Management Inc. raised its holdings in Texas Instruments by 1,810.0% in the second quarter. Osterweis Capital Management Inc. now owns 191 shares of the semiconductor company’s stock worth $40,000 after purchasing an additional 181 shares in the last quarter. Main Street Financial Solutions LLC lifted its position in shares of Texas Instruments by 1.7% during the second quarter. Main Street Financial Solutions LLC now owns 7,417 shares of the semiconductor company’s stock valued at $1,540,000 after buying an additional 126 shares during the last quarter. Finally, HUB Investment Partners LLC boosted its holdings in shares of Texas Instruments by 3.5% in the 2nd quarter. HUB Investment Partners LLC now owns 14,673 shares of the semiconductor company’s stock valued at $3,046,000 after buying an additional 496 shares in the last quarter. Institutional investors own 84.99% of the company’s stock.

Texas Instruments News Summary

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Management’s Q1 guidance implies sequential revenue growth and explicitly cited robust AI data‑center demand and an industrial recovery — the bullish outlook lifted investor sentiment. Texas Instruments shares jump as first-quarter outlook signals robust AI data center demand
• Positive Sentiment: The company’s forecast implies Q1 revenue could be higher than Q4 — a sequential recovery not seen in 16 years — reinforcing the view that demand is improving. Texas Instruments forecasts something that hasn’t happened in 16 years, lifting its stock
• Positive Sentiment: Broad chip sector momentum—driven by AI demand—helped lift TXN alongside peers, suggesting positive sentiment is extending across the industry. Intel, Micron and These Other Chip Stocks Are Rallying. Thank Texas Instruments and ASML.
• Neutral Sentiment: Q4 results were mixed: revenue $4.42B and net income $1.16B with EPS $1.27 — largely inline on revenue but a slight EPS miss; the company hosted a conference call/transcript for details. TI reports Q4 2025 and 2025 financial results and shareholder returns
• Neutral Sentiment: Detailed commentary and Q&A from the earnings call are available for investors who want management’s color on AI exposure, China demand and inventory trends. TXN Q4 2025 Earnings Call Transcript
• Negative Sentiment: On the downside, TXN missed EPS by $0.02 and revenue was slightly below consensus; some reports flag valuation concerns after the post‑earnings rally (questioning whether current price already prices in outsized growth). Texas Instruments (TXN) Lags Q4 Earnings and Revenue Estimates Is Texas Instruments (TXN) Pricing In Too Much Growth After Recent Share Price Strength

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Truist Financial increased their price objective on shares of Texas Instruments from $175.00 to $195.00 and gave the stock a “hold” rating in a research report on Friday, December 19th. JPMorgan Chase & Co. cut their target price on Texas Instruments from $225.00 to $210.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 22nd. UBS Group set a $245.00 price target on Texas Instruments and gave the stock a “buy” rating in a report on Wednesday, October 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Texas Instruments in a report on Monday, December 29th. Finally, Morgan Stanley set a $175.00 price objective on Texas Instruments in a research report on Wednesday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, ten have given a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, Texas Instruments currently has an average rating of “Hold” and a consensus target price of $196.86.

About Texas Instruments

Texas Instruments Inc (NASDAQ: TXN) is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company’s products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI’s business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI’s product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.