Texas Instruments beats Q3 estimates and guides higher, lifting shares
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The gist
Dallas chipmaker Texas Instruments reported Q3 earnings of $2.62 a share on $6.06 billion in sales, beating estimates.
The beat-and-raise comes as analysts split on whether the stock is overvalued.
Background
Texas Instruments is a Dallas-based chipmaker trading on NasdaqGS, operating Analog and Embedded Processing segments. Its Q3 report landed after the closing bell on Oct 21, with earnings of $2.62 a share on sales of $6.06 billion beating FactSet expectations of $2.44 a share, and guidance above estimates. The stock has returned 104.8% over the past three years, more than doubling investors' money, which puts a spotlight on whether the current share price lines up with expected cash flows.
How it unfolded
- Oct 15, 2026Texas Instruments' board declared a quarterly cash dividend of $1.52 per share of common stock.
- Oct 20, 2026TXN closed at $277.78, up 0.59%, on NasdaqGS. Wells Fargo maintained an Equal-Weight rating and lowered its price target to $300.00 from $310.00.
- Oct 21, 2026After the closing bell, Texas Instruments reported Q3 earnings of $2.62 a share on sales of $6.06 billion, beating FactSet expectations of $2.44 a share, and guided higher than estimates; the stock rose after the report.
- Oct 21, 2026TXN moved up 3.13%, while the Technology Equipment sector was up 1.60%.
Who’s saying what
- Analysts
- Wells Fargo kept an Equal Weight rating and cut its price target to $300 from $310, citing steep execution hurdles requiring nearly 8% sequential revenue growth to hit the midpoint of guidance.
- Bulls
- Simply Wall St notes one camp treats the current buildout as a springboard, with a bull case of 37% undervalued.
- Bears
- Simply Wall St notes the other camp sees the buildout as a drag, and its DCF projections put estimated intrinsic value meaningfully below the US$276.15 share price.
- Caution
- GuruFocus considers TXN overvalued, with a GF Value of $239.74 against a trading price of $278.75.
Still unverified
Simply Wall St's DCF-based intrinsic value estimate and its bull case of 37% undervalued are model projections, not reported results; GuruFocus's GF Value of $239.74 versus the trading price of $278.75 is a valuation estimate.