Texas Instruments third-quarter profit rises to $2.43 billion on analog growth

Texas Instruments Incorporated (TXN) reported third-quarter revenue of $6.06 billion and net income of $2.43 billion, the chipmaker said Wednesday in a news release attached to a regulatory filing. The results cover the three months ended Sept. 30, 2026.

Earnings per share were $2.62 for the quarter. The company said that figure included a 1-cent reduction that was not in its original guidance.

Here's how the company did:

• Revenue: $6,055 million vs. $4,742 million a year earlier
• Earnings per share: $2.62 vs. $1.48 a year earlier
• Net income: $2,425 million vs. $1,364 million a year earlier
• Operating profit: $2,874 million vs. $1,663 million a year earlier

Revenue rose 28% from the same quarter a year earlier and 11% from the previous quarter, the company said. Chairman, president and CEO Haviv Ilan said the growth continued across industrial, automotive and data center customers.

Gross profit was $3,887 million, compared with $2,723 million a year earlier. Operating profit was $2,874 million, up 73% from $1,663 million, and net income rose 78% to $2,425 million from $1,364 million.

Income before income taxes was $2,805 million, against $1,584 million a year earlier. The provision for income taxes was $380 million, compared with $220 million, and diluted shares averaged 921 million, up from 914 million.

Free cash flow for the trailing 12 months was $8.4 billion, a non-GAAP measure. Over the same period, cash flow from operations totaled $9.9 billion.

Texas Instruments defines free cash flow as cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives. The company believes the measure provides insight into its liquidity, its cash-generating capability and the amount of cash potentially available to return to shareholders.

Ilan tied the cash result to the company's operations. "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," TI chairman, president and CEO Haviv Ilan said.

Over the trailing 12 months, the company invested $4.0 billion in research and development and selling, general and administrative expenses. It invested $2.6 billion in capital expenditures and returned $5.8 billion to owners.

For the fourth quarter, the company's outlook calls for revenue of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79. The release does not restate the prior fourth-quarter outlook, so the filing does not show whether the range changed.

Here's how other Texas Instruments segments did during the quarter:

• Analog: revenue $4,911 million vs. $3,729 million a year earlier, up 32%; operating profit $2,505 million vs. $1,486 million, up 69%
• Embedded Processing: revenue $858 million vs. $709 million a year earlier, up 21%; operating profit $227 million vs. $108 million, up 110%
• Other: revenue $286 million vs. $304 million a year earlier, down 6%; operating profit $142 million vs. $69 million, up 106%

Analog revenue reached $4,911 million, and its operating profit rose 69% to $2,505 million.

Embedded Processing revenue rose 21% to $858 million, and its operating profit rose 110% to $227 million.

The Other category had revenue of $286 million, down 6% from a year earlier. Its operating profit was $142 million, up 106% from $69 million. A footnote says that line includes acquisition charges and restructuring charges or other items.

Acquisition charges were $7 million in the quarter. The company recorded no restructuring charges or other in the quarter, compared with $85 million a year earlier.

Dividends paid were $1,298 million in the quarter, up from $1,236 million a year earlier. Dividends declared were $1.42 per common share, compared with $1.36. Stock repurchases totaled $48 million, down from $119 million a year earlier.

Cash and cash equivalents were $4,211 million at quarter end, up from $3,311 million a year earlier. Long-term debt was $12,905 million, down from $13,546 million, after the company repaid $500 million of debt in the quarter. The filing does not describe the debt that was repaid.

The company filed the release under Item 2.02 of its 8-K, which covers results of operations and financial condition.