Q3 FY2026
Filed Oct 21, 2026Texas Instruments reported Q3 2026 revenue of $6.06 billion, net income of $2.43 billion and earnings per share of $2.62, and guided Q4 revenue to $5.80 billion to $6.30 billion and earnings per share to $2.45 to $2.79.
Q3 revenue increased 28%, operating profit increased 73%, net income increased 78% and diluted earnings per common share increased 77% from Q3 2025. All three reported segments increased operating profit, while the company guided Q4 revenue to $5.80 billion to $6.30 billion and earnings per share to $2.45 to $2.79.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026GAAP | $6.05B | 11% | 28 % |
| Cost of revenue, Q3 2026GAAP | $2.17B | – | – |
| Gross profit, Q3 2026GAAP | $3.89B | – | – |
| Research and development (R&D), Q3 2026GAAP | $530M | – | – |
| Selling, general and administrative (SG&A), Q3 2026GAAP | $476M | – | – |
| Acquisition charges, Q3 2026GAAP | $7M | – | – |
| Restructuring charges/other, Q3 2026GAAP | — | – | – |
| Operating profit, Q3 2026GAAP | $2.87B | – | 73 % |
| Other income (expense), net (OI&E), Q3 2026GAAP | $72M | – | – |
| Interest and debt expense, Q3 2026GAAP | $141M | – | – |
| Income before income taxes, Q3 2026GAAP | $2.81B | – | – |
| Provision for income taxes, Q3 2026GAAP | $380M | – | – |
| Operating taxes, Q3 2026non-GAAP | $390M | – | – |
| Discrete tax items, Q3 2026GAAP | −$10M | – | – |
| Net income, Q3 2026GAAP | $2.42B | – | 78 % |
| Diluted earnings per common share, Q3 2026GAAP | $2.62 | – | 77 % |
| Average shares outstanding: Basic, Q3 2026GAAP | 914M | – | – |
| Average shares outstanding: Diluted, Q3 2026GAAP | 921M | – | – |
| Cash dividends declared per common share, Q3 2026GAAP | $1.42 | – | – |
| Cash flow from operations, Q3 2026GAAP | $3.42B | – | – |
| Capital expenditures, Q3 2026GAAP | −$463M | – | – |
| Free cash flow, Q3 2026non-GAAP | $2.96B | – | – |
| Cash flow from operations, trailing 12 months ended September 30, 2026GAAP | $9.90B | – | 43 % |
| Capital expenditures, trailing 12 months ended September 30, 2026GAAP | −$2.58B | – | – |
| Proceeds from CHIPS Act incentives, trailing 12 months ended September 30, 2026GAAP | $1.10B | – | – |
| Free cash flow, trailing 12 months ended September 30, 2026non-GAAP | $8.42B | – | 249 % |
| Revenue, trailing 12 months ended September 30, 2026GAAP | $20.77B | – | – |
| Cash flow from operations as a percentage of revenue, trailing 12 months ended September 30, 2026GAAP | 47.7 % | – | – |
| Free cash flow as a percentage of revenue, trailing 12 months ended September 30, 2026non-GAAP | 40.6 % | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $4.21B | – | – |
| Short-term investments, September 30, 2026GAAP | $3.93B | – | – |
| Current portion of long-term debt, September 30, 2026GAAP | $650M | – | – |
| Long-term debt, September 30, 2026GAAP | $12.90B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AnalogContinued broad growth in industrial, automotive and data center. | $4.91B | – | 32 % |
| Embedded ProcessingContinued broad growth in industrial, automotive and data center. | $858M | – | 21 % |
| OtherNot separately disclosed. | $286M | – | (6) % |
Q4 2026 outlook
- Revenue$5.80 billion to $6.30 billion
- NoteEarnings per share between $2.45 and $2.79.
Capital returns
- Dividends paid, Q3 2026: $1,298 million; Q3 2025: $1,236 million.
- Stock repurchases, Q3 2026: $48 million; Q3 2025: $119 million.
- Total cash returned, Q3 2026: $1,346 million.
- Dividends paid, trailing 12 months ended September 30, 2026: $5,174 million; trailing 12 months ended September 30, 2025: $4,949 million; change: 5 %.
- Stock repurchases, trailing 12 months ended September 30, 2026: $636 million; trailing 12 months ended September 30, 2025: $1,611 million; change: (61) %.
- Total cash returned, trailing 12 months ended September 30, 2026: $5,810 million; trailing 12 months ended September 30, 2025: $6,560 million; change: (11) %.
- Over the past 12 months, TI returned $5.8 billion to owners.
What drove it
- Revenue increased 11% sequentially and 28% from the same quarter a year ago.
- TI cited continued broad growth in industrial, automotive and data center.
- Analog revenue increased 32 % and operating profit increased 69 %.
- Embedded Processing revenue increased 21 % and operating profit increased 110 %.
- Other operating profit increased 106 % despite revenue declining (6) %.
- Trailing-12-month free cash flow was $8,422 million, including $1,104 million of proceeds from CHIPS Act incentives.
Concerns
- Other segment revenue was $286 million, down (6) % from $304 million.
- Stock repurchases were $636 million for the trailing 12 months ended September 30, 2026, down (61) % from $1,611 million in the trailing 12 months ended September 30, 2025.
- Total cash returned was $5,810 million for the trailing 12 months ended September 30, 2026, down (11) % from $6,560 million in the trailing 12 months ended September 30, 2025.
- Earnings per share included a 1-cent reduction that was not in the company's original guidance.
- Q3 2026 included $7 million of acquisition charges.
What to watch
- Q4 2026 revenue outlook of $5.80 billion to $6.30 billion.
- Q4 2026 earnings per share outlook of $2.45 to $2.79.
- Continued broad growth in industrial, automotive and data center.
- The level of stock repurchases following $48 million in Q3 2026 and $636 million over the trailing 12 months.
- Cash generation and CHIPS Act incentives, which contributed $1,104 million of proceeds in the trailing 12 months ended September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $4,211 million; September 30, 2025: $3,311 million.
- Short-term investments at September 30, 2026: $3,931 million; September 30, 2025: $1,875 million.
- Inventories at September 30, 2026: $4,672 million; September 30, 2025: $4,829 million.
- Current portion of long-term debt at September 30, 2026: $650 million; September 30, 2025: $500 million.
- Long-term debt at September 30, 2026: $12,905 million; September 30, 2025: $13,546 million.
- Cash flows from operating activities, Q3 2026: $3,419 million; Q3 2025: $2,190 million.
- Capital expenditures, Q3 2026: $(463) million; Q3 2025: $(1,197) million.
- Net change in cash and cash equivalents, Q3 2026: $551 million; Q3 2025: $267 million.
- Investment tax credit used to reduce income taxes payable, Q3 2026: $79 million; Q3 2025: $43 million.
- Total cash benefit related to the CHIPS Act, Q3 2026: $79 million; Q3 2025: $118 million.
Analysis
Texas Instruments reported a strong Q3 2026. Revenue was $6,055 million, up 28 % from $4,742 million in Q3 2025 and up 11% sequentially. Operating profit rose 73 % to $2,874 million, while net income rose 78 % to $2,425 million. Diluted earnings per common share increased 77 % to $2.62, although the company said earnings per share included a 1-cent reduction that was not in its original guidance.
Growth was broad across the principal operating segments. Analog revenue was $4,911 million, up 32 %, and its operating profit was $2,505 million, up 69 %. Embedded Processing revenue was $858 million, up 21 %, with operating profit of $227 million, up 110 %. Other revenue declined (6) % to $286 million, but Other operating profit increased 106 % to $142 million. Management attributed overall growth to industrial, automotive and data center.
Cash generation strengthened. Q3 cash flows from operating activities were $3,419 million versus $2,190 million in Q3 2025, and Q3 free cash flow was $2,956 million. For the trailing 12 months ended September 30, 2026, cash flow from operations was $9,896 million and free cash flow was $8,422 million, compared with $6,897 million and $2,415 million, respectively, a 43 % increase in operating cash flow and a 249 % increase in free cash flow. The trailing-12-month free-cash-flow result included $1,104 million of proceeds from CHIPS Act incentives.
Capital allocation remained weighted toward dividends. TI paid $1,298 million in dividends and repurchased $48 million of stock in Q3. Over the trailing 12 months, dividends paid increased 5 % to $5,174 million, while stock repurchases declined (61) % to $636 million, resulting in total cash returned of $5,810 million, down (11) %. Cash and cash equivalents were $4,211 million at September 30, 2026, short-term investments were $3,931 million, and long-term debt was $12,905 million.
For Q4 2026, TI guided revenue to $5.80 billion to $6.30 billion and earnings per share to $2.45 to $2.79. The filing did not provide gross-margin, operating-expense or tax-rate guidance. The key reported factors to monitor are the continuation of industrial, automotive and data-center growth, the Q4 revenue and earnings-per-share ranges, the level of share repurchases, and cash generation including CHIPS Act incentives.
Management, verbatim
Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.
Haviv Ilan, chairman, president and CEO
Our cash flow from operations of $9.9 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $8.4 billion.
Haviv Ilan, chairman, president and CEO
TI's fourth quarter outlook is for revenue in the range of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79.
Haviv Ilan, chairman, president and CEO
Not in the filing
stated, not guessed- Prior-quarter values for Q3 2026 revenue, operating profit, net income, diluted earnings per common share and segment revenue were not provided.
- Q3 2026 gross margin was not reported.
- Q3 2026 free cash flow prior-year value and year-over-year change were not reported.
- Q4 2026 gross margin guidance was not provided.
- Q4 2026 operating expenses guidance was not provided.
- Q4 2026 tax-rate guidance was not provided.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.