Texas Instruments Spent $233 Million On Buybacks In Nine Months, Down From $1.07 Billion, While Dividends Grew
The chipmaker is raising its quarterly dividend 7% to $1.52 as repurchases slow and a $7.5 billion Silicon Labs deal awaits funding.
Texas Instruments, which designs and makes analog and embedded processing chips, used just $233 million to buy back stock in the first nine months of 2026, against $1.07 billion a year earlier, its 10-Q filed Friday shows. Dividends kept climbing, and a roughly $7.5 billion all-cash purchase of Silicon Labs still has to be paid for.
Buybacks shrink, dividends grow
Dividends paid reached $3.88 billion for the nine months, up from $3.71 billion, which the company attributed to a higher dividend rate. The September increase to $1.52 a share was the 23rd straight year of raises.
The nine-month buyback bought 1.1 million shares, versus 6.1 million a year earlier. The prior quarter's filing showed $185 million spent for the first six months, so the third quarter added about $48 million. The earnings release put third-quarter repurchases at $48 million and the trailing 12-month total at $636 million, versus $1.61 billion a year earlier.
The 10-Q lists 183,870 shares bought in the quarter, at average prices from $277.29 in July to $265.20 in September. The remaining authorization stood at $18.56 billion at September 30, essentially flat from $18.61 billion at June 30.
Cash is building ahead of Silicon Labs
Cash and short-term investments reached $8.14 billion, up $3.26 billion from the end of 2025. Capital spending fell to $1.65 billion for the nine months from $3.63 billion, while CHIPS Act incentive proceeds of $1.10 billion, versus $335 million a year earlier, helped cash flow. Operating cash flow for the nine months was $7.64 billion.
TI agreed to buy Silicon Labs for $231.00 a share in cash, an enterprise value of about $7.5 billion. It expects to pay with cash on hand and debt. In June it set up a 364-day delayed-draw term loan of up to $5 billion, and nothing had been borrowed as of September 30.
A strong quarter behind the cash
Third-quarter revenue rose 28% from a year earlier to $6.06 billion, with net income of $2.43 billion and earnings per share of $2.62. Revenue was up 11% from the second quarter, with growth in industrial, automotive and data center. Free cash flow for the trailing 12 months was $8.4 billion.
The company guided fourth-quarter revenue to a range of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79. The company expects the Silicon Labs deal to close in the first half of 2027, subject to regulatory approvals.
TI says it expects $2 billion to $3 billion of capital spending in 2026, and the Silicon Labs closing is targeted for the first half of 2027.
Sources
- 10-Q Filing — Texas Instruments (TXN) — SEC EDGAR
- 10-Q Filing — Texas Instruments (TXN), Q2 FY2026 filed 2026-07-24 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, q32026txnex99-eredgar.htm) — Texas Instruments, filed 2026-10-21 — SEC EDGAR
- Texas Instruments (TXN) Q3 Earnings Recast The Bull Case — Yahoo Finance
- These Analysts Revise Their Forecasts On Texas Instruments Following Q3 Results — benzinga.com
- Texas Instruments Q3 2026 earnings beat estimates on chip demand — qz.com
- Micron vs. Texas Instruments: Which Semiconductor Stock Has the Edge? — Yahoo Finance
- Chip Stocks Tumble Despite Solid Earnings Reports | Investor's Business Daily — investors.com
