Texas Instruments (NASDAQ:TXN) Shares Gap Up Following Strong Earnings

Texas Instruments Incorporated (NASDAQ:TXN) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $236.31, but opened at $260.31. Texas Instruments shares last traded at $273.3550, with a volume of 5,140,708 shares.

The semiconductor company reported $1.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.37 by $0.31. Texas Instruments had a net margin of 28.28% and a return on equity of 30.44%. The business had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.85 billion. During the same period last year, the firm posted $1.23 EPS. The company’s revenue was up 18.6% on a year-over-year basis. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS.

Texas Instruments Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Tuesday, May 5th will be given a dividend of $1.42 per share. The ex-dividend date is Tuesday, May 5th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.1%. Texas Instruments’s dividend payout ratio (DPR) is presently 104.41%.

Texas Instruments News Roundup

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Q1 beat and above-consensus guidance — TXN reported EPS $1.68 (vs. ~$1.37 est.) and revenue up ~18.6% YoY (~$4.8B). Management set Q2 EPS guidance of $1.77–2.05 and revenue guidance above Street estimates, driven by industrial and data-center demand; that combination is driving the rally. Article Title
• Positive Sentiment: Multiple analyst upgrades and bigger price targets — Bank of America upgraded TXN from Neutral to Buy and raised its PT to $320; Robert W. Baird raised its PT to $300 and Rosenblatt to $330. Those upgrades amplify buying pressure by signaling sustained upside from better demand and margin trends. Article Title
• Positive Sentiment: Demand mix improving — Reports and commentary highlight stronger data-center buildouts and a rebound in industrial end markets, which matter for TI’s analog-heavy portfolio and support above-consensus guidance. Article Title
• Neutral Sentiment: Institutional positioning is mixed — Quiver/filings show large portfolio adjustments by some institutional holders (both adds and sizable reductions), suggesting flows could amplify volatility even as fundamentals improve. Article Title
• Negative Sentiment: Insider selling and elevated valuation — Multiple insider share sales were reported and TXN currently trades at a high P/E (~43) and PEG >2, which could limit upside if growth stalls or macro demand softens. Article Title

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. upped their price target on shares of Texas Instruments from $210.00 to $227.00 and gave the company an “overweight” rating in a research note on Wednesday, January 28th. UBS Group restated a “buy” rating on shares of Texas Instruments in a report on Thursday. The Goldman Sachs Group upped their target price on shares of Texas Instruments from $175.00 to $200.00 and gave the company a “sell” rating in a research report on Thursday. Bank of America raised shares of Texas Instruments from a “neutral” rating to a “buy” rating and increased their price target for the company from $235.00 to $320.00 in a report on Thursday. Finally, TD Cowen reissued a “buy” rating on shares of Texas Instruments in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, Texas Instruments has a consensus rating of “Hold” and a consensus price target of $238.47.

Insiders Place Their Bets

In other news, VP Hagop H. Kozanian sold 6,843 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $225.95, for a total transaction of $1,546,175.85. Following the transaction, the vice president owned 75,425 shares of the company’s stock, valued at approximately $17,042,278.75. This represents a 8.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark A. Blinn sold 3,144 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $221.58, for a total transaction of $696,647.52. Following the completion of the sale, the director directly owned 11,670 shares of the company’s stock, valued at $2,585,838.60. The trade was a 21.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 114,284 shares of company stock worth $25,531,935. 0.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Texas Instruments

Institutional investors have recently bought and sold shares of the company. Strategic Wealth Investment Group LLC acquired a new position in shares of Texas Instruments during the second quarter worth $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of Texas Instruments in the 1st quarter worth $27,000. High Point Wealth Management LLC purchased a new position in Texas Instruments during the 4th quarter worth $25,000. Advocate Investing Services LLC purchased a new position in Texas Instruments during the 4th quarter worth $25,000. Finally, Ares Financial Consulting LLC acquired a new position in Texas Instruments during the 4th quarter valued at about $26,000. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Texas Instruments Stock Performance

The business has a 50 day simple moving average of $206.89 and a 200 day simple moving average of $189.75. The company has a quick ratio of 2.83, a current ratio of 4.35 and a debt-to-equity ratio of 0.83. The company has a market capitalization of $251.89 billion, a PE ratio of 50.79, a PEG ratio of 2.12 and a beta of 1.01.

About Texas Instruments

Texas Instruments Inc (NASDAQ: TXN) is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company’s products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI’s business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI’s product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.