Texas Instruments (NASDAQ: TXN) revenue jumps and sets Q4 outlook

What happened

Texas Instruments Incorporated (NASDAQ: TXN) reported third-quarter revenue of $6.06 billion, net income of $2.43 billion and EPS of $2.62 on Oct. 21, 2026. The company said EPS included a 1-cent reduction not in original guidance.

Revenue rose 11% from the prior quarter and 28% from a year earlier. Growth continued in industrial, automotive and data center. Analog revenue was $4.91 billion, embedded processing revenue was $858 million and other revenue was $286 million.

Key numbers

Metric	Latest	Change	Source
Third-quarter revenue	$6.06 billion	from $4.74 billion, +28%	Texas Instruments third-quarter 2026 results
Third-quarter net income	$2.43 billion	from $1.36 billion, +78%	Texas Instruments third-quarter 2026 results
Third-quarter EPS	$2.62	from $1.48, +77%	Texas Instruments third-quarter 2026 results
Trailing 12-month cash flow from operations	$9.9 billion	from $6.90 billion, +43%	Texas Instruments third-quarter 2026 results
Trailing 12-month free cash flow	$8.42 billion	from $2.42 billion, +249%	Texas Instruments third-quarter 2026 results
Fourth-quarter outlook	$5.80 billion to $6.30 billion revenue and $2.45 to $2.79 EPS		Texas Instruments third-quarter 2026 results

Read more: Texas Instruments (TXN) stock analysis and investment case

Why it matters

Revenue increased by $1.31 billion from $4.74 billion a year earlier. Operating profit rose to $2.87 billion from $1.66 billion. Net income climbed to $2.43 billion from $1.36 billion, and diluted EPS rose to $2.62 from $1.48.

Cash flow from operations reached $9.9 billion over the trailing 12 months, up from $6.90 billion a year earlier. Free cash flow was $8.4 billion, and the release said that was 40.6% of revenue, versus 14.0% a year earlier.

These figures support OptimistFi's view that Texas Instruments turns design-ins into cash and shareholder returns. The company said it spent $4.0 billion on R&D and SG&A, $2.6 billion on capital expenditures and returned $5.8 billion to owners over the past 12 months.

Analog revenue was the biggest line item at $4.91 billion, and analog operating profit was $2.51 billion. Embedded processing revenue was $858 million and operating profit was $227 million, while the company said the 300mm production base helped cash flow.

At quarter end, cash and cash equivalents were $4.21 billion and short-term investments were $3.93 billion. Long-term debt was $12.91 billion, and stockholders' equity was $19.19 billion.

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What's next

The conference call starts at 3:30 p.m. Central time today on ti.com ir. TI's fourth-quarter outlook is revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79.

Results near the high end would strengthen the cash-generation case. Results near the low end would make the guide look cautious. The next quarter will show whether recent growth and cash flow continue into the new period.

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