From The Motley Fool · Motley Fool Transcribing · · 2m
Texas Instruments Q3 2026 Earnings Report
Texas Instruments reports 28% revenue growth and 77% EPS increase driven by industrial, automotive, and data center markets.
In brief
Texas Instruments reports 28% revenue growth and 77% EPS increase driven by industrial, automotive, and data center markets. Texas Instruments reported $6.06 billion Q3 revenue, a 28% year-over-year increase, with analog segment revenue up 32% and data center revenue growing 95%. Originally reported by The Motley Fool.
Q3 2026 Results
Texas Instruments reported $6.06 billion revenue, a 28% year-over-year increase.
Analog Segment Growth
Analog segment revenue reached $4,911 million, up 32% year-over-year.
Embedded Processing Growth
Embedded processing revenue grew 21% year-over-year to $858 million.
Net Income Increase
Net income rose 78% to $2,425 million from $1,364 million in the prior-year quarter.
Gross Profit Margin
Gross profit margin increased 280 basis points to 64%.
Industrial Market Growth
Industrial market revenue grew over 40% year-over-year to a new record peak.
Automotive Market Growth
Automotive market revenue increased in the mid-teens year-over-year, supported by U.S. and China demand.
Data Center Growth
Data center revenue grew 95% year-over-year, representing 13% of total company revenue.
Operating Profit
Operating profit reached $2,874 million, a 73% increase from the prior-year quarter.
Q4 Revenue Guidance
Q4 revenue guidance is $5.80 billion to $6.30 billion, reflecting above-seasonal demand expectations.
Q4 EPS Guidance
Q4 EPS guidance is $2.45 to $2.79, based on projected operational performance.
2027 Tax Guidance
2027 tax rate expected to be 13% to 14% effective.
CHIPS Act Incentives
Free cash flow includes $1.6 billion in CHIPS Act incentives from the investment tax credit and direct funding.
Humanoid Robotics Opportunity
Management indicated humanoid robotics could represent a $500 to $1,000 per unit content opportunity starting in 2027.
Inventory Levels
Inventory reached $4,672 million, representing 194 days, a decrease of two days from the prior quarter.
Capital Expenditures
Capital expenditures were $2,578 million over the last 12 months, with $463 million invested in Q3.
What matters most
Texas Instruments reported $6.06 billion Q3 revenue, a 28% year-over-year increase, with analog segment revenue up 32% and data center revenue growing 95%.
