TLDR
- Texas Instruments (TXN) stock slipped 0.5% to about $283 after hours, after rising 2.47% in the regular session.
- Q3 earnings per share were $2.62 on revenue of $6.06 billion, up 28% from a year ago. Both beat estimates.
- Q4 revenue guidance of $5.8 billion to $6.3 billion and EPS guidance of $2.45 to $2.79 topped analyst forecasts.
- The stock is down 14% from its June all-time high and trades at about 28 times projected earnings.
- Wells Fargo cut its price target to $300, while Lam Research fell 5.1% after its own report.
Texas Instruments (TXN) stock slipped 0.5% to about $283 in after-hours trading Wednesday. The move came after the chipmaker reported third-quarter results that beat Wall Street estimates.
Texas Instruments Incorporated, TXN
The stock had closed the regular session up 2.47%, so some of the good news was likely priced in. It needed a jump-start after a slow few months, and traders appear to have sold into the strength.
Earnings per share came in at $2.62, up from $1.48 a year ago. Analysts had expected between $2.42 and $2.44, depending on the source.
TEXAS INSTRUMENTS $TXN Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $6.06B (Est. $5.92B) 🟢; +28% YoY
🔹 EPS: $2.62 (Est. $2.42) 🟢; +77% YoYQ4 Guide:
🔹 Revenue: $5.80B-$6.30B (Est. $5.73B) 🟢
🔹 EPS: $2.45-$2.79 (Est. $2.30) 🟢Trailing 12 Months:
🔹 Cash Flow from Operations:… pic.twitter.com/vZltCpQ2Pk— Wall St Engine (@wallstengine) October 21, 2026
Revenue rose 28% from a year earlier to $6.06 billion. Wall Street had called for about $5.93 billion.
Fourth-Quarter Guidance Tops Forecasts
Texas Instruments guided fourth-quarter revenue to a range of $5.8 billion to $6.3 billion. Analysts were looking for about $5.76 billion.
Earnings per share guidance is $2.45 to $2.79. That sits well above the consensus of roughly $2.31.
CEO Haviv Ilan said revenue rose 11% from the prior quarter. He pointed to continued growth in industrial, automotive and data center markets.
Investors had worried that guidance might look light for a stock priced above its peers. This report eased that concern, at least on paper.
M Science analyst Chandler Willison said it was not a standout quarter. He did say it showed “competent, continued execution.”
Valuation and Analyst Views
The stock is down 14% from its all-time high in June. It had jumped about 94% in the first half of the year as demand for analog chips picked up.
It hit 40 times projected 12-month earnings in June, its priciest level in over a decade. It now trades at about 28 times.
Wells Fargo cut its price target to $300 from $310 on October 20 and kept an Equal Weight rating. Cantor Fitzgerald holds a Neutral rating with a $340 target.
Cantor had warned that consensus estimates for TXN were among the most aggressive in the analog group. That raised the bar heading into the report.
Lam Research fell 5.1% after its own earnings report. It posted a modest beat, but its guidance was only in line with expectations.
Insiders made 33 sales and no open-market purchases over the past six months. The S&P 500 gained 0.58% on Wednesday.
The stock sits well below its 52-week high of $334.03 and far above its 52-week low of $152.73. After hours, it traded near $283.
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