TI reports third quarter 2026 financial results and shareholder returns
Conference call at 3:30 p.m. Central time today on ti.com/ir DALLAS (Oct. 21, 2026) – Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $6.06 billion, net income of $2.43 billion and earnings per share of $2.62. Earnings per share included a 1-cent reduction that was not in the company's original guidance.
Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:
• "Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.
• "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.
• "Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.8 billion to owners.
• "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." 1 Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.
Consolidated (In millions, For Three Months Statements of except Ended Income per-share amounts) September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Revenue $ 6,055 $ 4,742 Cost of revenue 2,168 2,019 (COR) Gross profit 3,887 2,723 Research and 530 518 development (R&D) Selling, general and 476 457 administrative (SG&A) Acquisition 7 — charges Restructuring — 85 charges/other Operating profit 2,874 1,663 Other income (expense), net 72 62 (OI&E) Interest and debt 141 141 expense Income before 2,805 1,584 income taxes Provision for 380 220 income taxes Net income $ 2,425 $ 1,364 Diluted earnings $ 2.62 $ 1.48 per common share Average shares outstanding: Basic 914 909 Diluted 921 914 Cash dividends declared per $ 1.42 $ 1.36 common share Supplemental Information (Quarterly, except as noted) Provision for income taxes is based on the following: Operating taxes (calculated using the $ 390 $ 249 estimated annual effective tax rate) Discrete tax -10 -29 items Provision for income taxes $ 380 $ 220 (effective taxes) A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following: Net income $ 2,425 $ 1,364 Income allocated -14 -8 to RSUs Income allocated to common stock $ 2,411 $ 1,356 for diluted EPS
Consolidated Balance Sheets (In millions, except par value) Assets September 30, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 4,211 $ 3,311 Short-term investments 3,931 1,875 Accounts receivable, net of allowances 2,620 2,062 of ($27) and ($21) Raw materials 497 431 Work in process 2,482 2,460 Finished goods 1,693 1,938 Inventories 4,672 4,829 Prepaid expenses and other current 1,446 1,799 assets Total current assets 16,880 13,876 Property, plant and equipment at 18,072 17,314 cost Accumulated depreciation -6,239 -4,966 Property, plant and equipment 11,833 12,348 Goodwill 4,330 4,362 Deferred tax assets 1,054 1,089 Capitalized software licenses 301 237 Overfunded retirement plans 320 251 Other long-term assets 2,121 2,841 Total assets $ 36,839 $ 35,004 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ 650 $ 500 Accounts payable 837 779 Accrued compensation 675 724 Income taxes payable 60 79 Accrued expenses and other 795 1,036 liabilities Total current liabilities 3,017 3,118 Long-term debt 12,905 13,546 Underfunded retirement plans 118 125 Deferred tax liabilities 62 60 Other long-term liabilities 1,552 1,528 Total liabilities 17,654 18,377 Stockholders' equity: Preferred stock, $25 par value. Shares — — authorized – 10; none issued Common stock, $1 par value. Shares authorized – 2,400; shares issued 1,741 1,741 – 1,741 Paid-in capital 5,202 4,410 Retained earnings 54,282 52,369 Treasury common stock at cost Shares: September 30, 2026 – 827; -41,955 -41,744 September 30, 2025 – 832 Accumulated other comprehensive income -85 -149 (loss), net of taxes (AOCI) Total stockholders' equity 19,185 16,627 Total liabilities and stockholders' $ 36,839 $ 35,004 equity
Consolidated Statements of Cash Flows (In millions) For Three Months Ended Cash flows from operating September 30, activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 2,425 $ 1,364 Adjustments to net income: Depreciation 555 497 Amortization of 21 20 capitalized software Stock compensation 95 93 Deferred taxes -26 3 Increase (decrease) from changes in: Accounts receivable -100 -128 Inventories -67 -17 Prepaid expenses and other current 16 18 assets Accounts payable and 75 86 accrued expenses Accrued compensation 135 121 Income taxes payable 319 107 Changes in funded status of retirement -6 13 plans Other -23 13 Cash flows from operating 3,419 2,190 activities Cash flows from investing activities Capital expenditures -463 -1,197 Proceeds from CHIPS Act — 75 incentives Proceeds from asset sales — 1 Purchases of short-term -1,969 -805 investments Proceeds from short-term 1,399 1,260 investments Other 46 -15 Cash flows from investing -987 -681 activities Cash flows from financing activities Repayment of debt -500 — Dividends paid -1,298 -1,236 Stock repurchases -48 -119 Proceeds from common stock 16 125 transactions Other -51 -12 Cash flows from financing -1,881 -1,242 activities Net change in cash and 551 267 cash equivalents Cash and cash equivalents at beginning 3,660 3,044 of period Cash and cash equivalents at end of $ 4,211 $ 3,311 period Supplemental cash flow information Investment tax credit (ITC) used to $ 79 $ 43 reduce income taxes payable Proceeds from CHIPS Act — 75 incentives Total cash benefit related to the CHIPS $ 79 $ 118 Act
This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.
We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.
Reconciliation to the most directly comparable GAAP measures is provided in the table below.
* Includes cash benefits of $79 million, $469 million and $302 million from the CHIPS Act ITC used to reduce income taxes payable for the three months ended September 30, 2026, and the twelve months ended September 30, 2026 and 2025, respectively.
This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items. 7
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:
• Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies;
• Our ability to compete in products and prices in an intensely competitive industry;
• Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts;
• Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments;
• Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties;
• Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings;
• Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity;
• Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology;
• Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession;
• Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts;
• Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors;
• Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment;
• Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability;
• Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets;
• Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims;
For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of our most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement. 8
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com . 9
Full text with the tables
Exhibit 99
TI reports third quarter 2026 financial results and shareholder returns
Conference call at 3:30 p.m. Central time today on ti.com/ir
DALLAS (Oct. 21, 2026) – Texas Instruments Incorporated (TI) (Nasdaq: TXN) today
reported third quarter revenue of $6.06 billion, net income of $2.43 billion and
earnings per share of $2.62. Earnings per share included a 1-cent reduction that
was not in the company's original guidance.
Regarding the company's performance and returns to shareholders, Haviv Ilan,
TI's chairman, president and CEO, made the following comments:
• "Revenue increased 11% sequentially and 28% from the same quarter a year ago
with continued broad growth in industrial, automotive and data center.
• "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.
• "Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested
$2.6 billion in capital expenditures and returned $5.8 billion to owners.
• "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."
1
Free cash flow, a non-GAAP financial measure, is cash flow from operations less
capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act)
incentives.
Earnings summary
(In millions,
except per-share
amounts) Q3 2026 Q3 2025 Change
──────────────────────────────────────────────────────────────────────────────
Revenue $ 6,055 $ 4,742 28 %
Operating profit $ 2,874 $ 1,663 73 %
Net income $ 2,425 $ 1,364 78 %
Earnings per $ 2.62 $ 1.48 77 %
share
Cash generation
Trail…
(In Q3 12 Q3 Q3
milli… 2026 Months 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Cash
flow $ 3,419 $ 9,896 $ 6,897 43 %
from
oper…
Free
cash $ 2,956 $ 8,422 $ 2,415 249 %
flow
Free
cash
flow 40.6 % 14.0 %
% of
reve…
Cash return
Traili…
(In 12
millio… Q3 2026 Months Q3 2026 Q3 2025 Change
──────────────────────────────────────────────────────────────────────────────
Divid… $ 1,298 $ 5,174 $ 4,949 5 %
paid
Stock $ 48 $ 636 $ 1,611 -61 %
repur…
Total
cash $ 1,346 $ 5,810 $ 6,560 -11 %
retur…
2
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated (In millions, For Three Months
Statements of except Ended
Income per-share amounts) September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 6,055 $ 4,742
Cost of revenue 2,168 2,019
(COR)
Gross profit 3,887 2,723
Research and 530 518
development (R&D)
Selling, general
and 476 457
administrative
(SG&A)
Acquisition 7 —
charges
Restructuring — 85
charges/other
Operating profit 2,874 1,663
Other income
(expense), net 72 62
(OI&E)
Interest and debt 141 141
expense
Income before 2,805 1,584
income taxes
Provision for 380 220
income taxes
Net income $ 2,425 $ 1,364
Diluted earnings $ 2.62 $ 1.48
per common share
Average shares
outstanding:
Basic 914 909
Diluted 921 914
Cash dividends
declared per $ 1.42 $ 1.36
common share
Supplemental
Information
(Quarterly,
except as noted)
Provision for
income taxes is
based on
the following:
Operating taxes
(calculated using
the $ 390 $ 249
estimated annual
effective tax
rate)
Discrete tax -10 -29
items
Provision for
income taxes $ 380 $ 220
(effective
taxes)
A portion of net
income is
allocated to
unvested
restricted stock
units (RSUs)
on which we pay
dividend
equivalents.
Diluted EPS is
calculated using
the
following:
Net income $ 2,425 $ 1,364
Income allocated -14 -8
to RSUs
Income allocated
to common stock $ 2,411 $ 1,356
for
diluted EPS
3
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets
(In millions, except par value)
Assets September 30,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 4,211 $ 3,311
Short-term investments 3,931 1,875
Accounts receivable, net of
allowances 2,620 2,062
of ($27) and ($21)
Raw materials 497 431
Work in process 2,482 2,460
Finished goods 1,693 1,938
Inventories 4,672 4,829
Prepaid expenses and other
current 1,446 1,799
assets
Total current assets 16,880 13,876
Property, plant and equipment at 18,072 17,314
cost
Accumulated depreciation -6,239 -4,966
Property, plant and equipment 11,833 12,348
Goodwill 4,330 4,362
Deferred tax assets 1,054 1,089
Capitalized software licenses 301 237
Overfunded retirement plans 320 251
Other long-term assets 2,121 2,841
Total assets $ 36,839 $ 35,004
Liabilities and stockholders'
equity
Current liabilities:
Current portion of long-term debt $ 650 $ 500
Accounts payable 837 779
Accrued compensation 675 724
Income taxes payable 60 79
Accrued expenses and other 795 1,036
liabilities
Total current liabilities 3,017 3,118
Long-term debt 12,905 13,546
Underfunded retirement plans 118 125
Deferred tax liabilities 62 60
Other long-term liabilities 1,552 1,528
Total liabilities 17,654 18,377
Stockholders' equity:
Preferred stock, $25 par value.
Shares — —
authorized – 10; none issued
Common stock, $1 par value.
Shares
authorized – 2,400; shares issued 1,741 1,741
–
1,741
Paid-in capital 5,202 4,410
Retained earnings 54,282 52,369
Treasury common stock at cost
Shares:
September 30, 2026 – 827; -41,955 -41,744
September 30,
2025 – 832
Accumulated other comprehensive
income -85 -149
(loss), net of taxes (AOCI)
Total stockholders' equity 19,185 16,627
Total liabilities and
stockholders' $ 36,839 $ 35,004
equity
4
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of
Cash Flows
(In millions) For Three Months Ended
Cash flows from operating September 30,
activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 2,425 $ 1,364
Adjustments to net income:
Depreciation 555 497
Amortization of 21 20
capitalized software
Stock compensation 95 93
Deferred taxes -26 3
Increase (decrease) from
changes in:
Accounts receivable -100 -128
Inventories -67 -17
Prepaid expenses and other
current 16 18
assets
Accounts payable and 75 86
accrued expenses
Accrued compensation 135 121
Income taxes payable 319 107
Changes in funded status
of retirement -6 13
plans
Other -23 13
Cash flows from operating 3,419 2,190
activities
Cash flows from investing
activities
Capital expenditures -463 -1,197
Proceeds from CHIPS Act — 75
incentives
Proceeds from asset sales — 1
Purchases of short-term -1,969 -805
investments
Proceeds from short-term 1,399 1,260
investments
Other 46 -15
Cash flows from investing -987 -681
activities
Cash flows from financing
activities
Repayment of debt -500 —
Dividends paid -1,298 -1,236
Stock repurchases -48 -119
Proceeds from common stock 16 125
transactions
Other -51 -12
Cash flows from financing -1,881 -1,242
activities
Net change in cash and 551 267
cash equivalents
Cash and cash equivalents
at beginning 3,660 3,044
of period
Cash and cash equivalents
at end of $ 4,211 $ 3,311
period
Supplemental cash flow
information
Investment tax credit
(ITC) used to $ 79 $ 43
reduce income taxes
payable
Proceeds from CHIPS Act — 75
incentives
Total cash benefit related
to the CHIPS $ 79 $ 118
Act
5
Segment results
(In millions)
Analog: Q3 2026 Q3 2025 Change
────────────────────────────────────────────────────────────────────────────
Revenue $ 4,911 $ 3,729 32 %
Operating profit $ 2,505 $ 1,486 69 %
Embedded Processing:
Revenue $ 858 $ 709 21 %
Operating profit $ 227 $ 108 110 %
Other:
Revenue $ 286 $ 304 -6 %
Operating profit * $ 142 $ 69 106 %
* Includes Acquisition charges and Restructuring charges/other
6
Non-GAAP financial information
This release includes references to free cash flow and ratios based on that
measure. These are financial measures that were not prepared in accordance with
GAAP. Free cash flow is calculated as cash flows from operating activities (also
referred to as cash flow from operations) less capital expenditures, plus
proceeds from CHIPS Act incentives.
We believe that free cash flow and the associated ratios provide insight into
our liquidity, our cash-generating capability and the amount of cash potentially
available to return to shareholders, as well as insight into our financial
performance. These non-GAAP measures are supplemental to the comparable GAAP
measures.
Reconciliation to the most directly comparable GAAP measures is provided in the
table below.
For
Three For 12
Months Months
Ended Ended
(In Septe… Septe…
mill… 2026 30, 2026 30, 2025 Chan…
──────────────────────────────────────────────────────────────────────────────
Cash
flow
from $ 3,419 $ 9,896 $ 6,897 43 %
oper…
(GAA…
*
Capi… -463 -2,578 -4,817
expe…
Proc…
from
CHIPS — 1,104 335
Act
ince…
Free
cash $ 2,956 $ 8,422 $ 2,415 249 %
flow
(non…
Reve… $ 20,766 $ 17,266
Cash
flow
from
oper…
as a 47.7 % 39.9 %
perc…
of
reve…
(GAA…
Free
cash
flow
as a 40.6 % 14.0 %
perc…
of
reve…
(non…
* Includes cash benefits of $79 million, $469 million and $302 million from the
CHIPS Act ITC used to reduce income taxes payable for the three months ended
September 30, 2026, and the twelve months ended September 30, 2026 and 2025,
respectively.
This release also includes references to operating taxes, a non-GAAP term we use
to describe taxes calculated using the estimated annual effective tax rate, a
GAAP measure that by definition does not include discrete tax items. We believe
the term operating taxes helps to differentiate from effective taxes, which
include discrete tax items.
7
Notice regarding forward-looking statements
This release includes forward-looking statements intended to qualify for the
safe harbor from liability established by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements generally can be identified
by phrases such as TI or its management "believes," "expects," "anticipates,"
"foresees," "forecasts," "estimates" or other words or phrases of similar
import. Similarly, statements herein that describe TI's business strategy,
outlook, objectives, plans, intentions or goals also are forward-looking
statements. All such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those in
forward-looking statements.
We urge you to carefully consider the following important factors that could
cause actual results to differ materially from the expectations of TI or our
management:
• Economic, social and political conditions, and natural events in the countries
in which we, our customers or our suppliers operate, including global trade
policies;
• Our ability to compete in products and prices in an intensely competitive
industry;
• Market demand for semiconductors, particularly in the industrial and
automotive markets, and customer demand that differs from forecasts;
• Losses or curtailments of purchases from key customers or the timing and
amount of customer inventory adjustments;
• Evolving cybersecurity and other threats relating to our information
technology systems or those of our customers, suppliers and other third parties;
• Our ability to successfully implement and realize opportunities from
strategic, business and organizational changes, or our ability to realize our
expectations regarding the amount and timing of associated restructuring charges
and cost savings;
• Our ability to develop, manufacture and market innovative products in a
rapidly changing technological environment, our timely implementation of new
manufacturing technologies and installation of manufacturing equipment, and our
ability to realize expected returns on significant investments in manufacturing
capacity;
• Availability and cost of key materials, utilities, manufacturing equipment,
third-party manufacturing services and manufacturing technology;
• Our ability to retain, train and recruit skilled personnel and effectively
manage key employee succession;
• Product liability, warranty or other claims relating to our products,
software, manufacturing, delivery, services, design or communications, or
recalls by our customers for a product containing one of our parts;
• Financial difficulties of our distributors or semiconductor distributors'
promotion of competing product lines to our detriment; or disputes with current
or former distributors;
• Our ability to maintain or improve profit margins, including our ability to
utilize our manufacturing facilities at sufficient levels to cover our fixed
operating costs, in an intensely competitive and cyclical industry and changing
regulatory environment;
• Compliance with or changes in the complex laws, rules and regulations to which
we are or may become subject, or actions of enforcement authorities, that
restrict our ability to operate our business or subject us to fines, penalties
or other legal liability;
• Changes in tax law and accounting standards that impact the tax rate
applicable to us, the jurisdictions in which profits are determined to be earned
and taxed, adverse resolution of tax audits, increases in tariff rates, and the
ability to realize deferred tax assets;
• Our ability to maintain and enforce a strong intellectual property portfolio
and maintain freedom of operation in all jurisdictions where we conduct
business; or our exposure to infringement claims;
• Our ability to make principal and interest payments on our debt when due;
• Instability in the global credit and financial markets; and
• Impairments of our non-financial assets.
For a more detailed discussion of these factors, see the Risk factors discussion
in Item 1A of our most recent Form 10-K. The forward-looking statements included
in this release are made only as of the date of this release, and we undertake
no obligation to update the forward-looking statements to reflect subsequent
events or circumstances. If we do update any forward-looking statement, you
should not infer that we will make additional updates with respect to that
statement or any other forward-looking statement.
8
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company
that designs, manufactures and sells analog and embedded processing chips for
markets such as industrial, automotive, data center, personal electronics and
communications equipment. At our core, we have a passion to create a better
world by making electronics more affordable through semiconductors. This passion
is alive today as each generation of innovation builds upon the last to make our
technology more reliable, more affordable and lower power, making it possible
for semiconductors to go into electronics everywhere. Learn more at TI.com .
9