Texas Instruments Q3 2026: 300mm Bet Pays Off With 73% Operating Income Jump

Texas Instruments reported third-quarter 2026 GAAP diluted EPS of $2.62, beating expectations, with revenue also topping expectations. The results included a 1-cent reduction not in the company's original guidance and acquisition charges.

Operating income surged 73% year over year to $2.87 billion, a direct reflection of the cost advantages flowing from the company's accelerating shift to 300mm wafer production. Gross profit and net income rose as well.

Segment performance was broad-based. Analog, the company's largest division, grew revenue 32% to $4.91 billion, while Embedded Processing posted a 21% revenue gain. CEO Haviv Ilan noted that revenue increased 11% sequentially and 28% from a year ago, citing continued broad growth in industrial, automotive, and data center end markets as the primary drivers.

On the cash side, free cash flow for the trailing 12 months reached $8.4 billion, supported by operating cash flow over the same period. Capital expenditures in the quarter fell sharply, a reduction that reflects the maturing phase of TI's heavy manufacturing buildout and contributed meaningfully to the free cash flow expansion. The company declared a quarterly dividend and repurchased stock during the quarter.

For the fourth quarter, management guided revenue of $5.80 billion to $6.30 billion, signaling that demand across its key end markets remains intact heading into year-end. The midpoint of the guided EPS range sits above where consensus stood entering the third-quarter report.