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# Texas Instruments Third-Quarter Net Income Rises 78% To $2.43 Billion As Capital Spending Drops
- URL: https://www.bullished.co/texas-instruments-third-quarter-net-income-rises-78-to-2-43-billion-as-capital-spending-731f230d/
- Published: 2026-10-21T20:28:07.000Z
- Updated: 2026-10-21T20:28:07.000Z
- Description: Trailing 12-month free cash flow reached $8.42 billion, and the chipmaker guided fourth-quarter revenue to $5.80 billion to $6.30 billion.
- Author: Matteo Parrino
- Tags: Earnings, TXN, Industry: Technology

Texas Instruments earned [$2.43 billion](https://www.sec.gov/Archives/edgar/data/0000097476/000009747626000165/txn-20261021.htm?ref=bullished.co) in the third quarter, up 78% from $1.36 billion a year earlier, according to an 8-K and attached earnings release filed Wednesday. Revenue rose 28% to $6.06 billion, and earnings per share were $2.62 versus $1.48.

## What the earnings release says

Operating profit climbed 73% to $2.87 billion. Gross profit grew to $3.89 billion from $2.72 billion, while [cost of revenue](https://www.sec.gov/Archives/edgar/data/0000097476/000009747626000165/q32026txnex99-eredgar.htm?ref=bullished.co) rose only to $2.17 billion from $2.02 billion. Earnings per share included a 1-cent reduction that was not in the company's original guidance.

Chairman, president and CEO Haviv Ilan said revenue rose 11% from the prior quarter, with "continued broad growth in industrial, automotive and data center."

By segment, analog revenue rose 32% to $4.91 billion, with operating profit up 69% to $2.51 billion. Embedded processing revenue rose 21% to $858 million, and its operating profit more than doubled, up 110% to $227 million. The "Other" category's revenue fell 6% to $286 million.

## Cash: less spent on factories, less spent on buybacks

Capital spending in the quarter was $463 million, versus $1.20 billion a year earlier. Free cash flow, a measure outside standard accounting (operating cash flow less capital spending, plus CHIPS Act incentive proceeds), was $8.42 billion over the trailing 12 months, up from $2.42 billion. Over that span, operating cash flow was [$9.90 billion](https://www.prnewswire.com/news-releases/ti-reports-third-quarter-2026-financial-results-and-shareholder-returns-302915896.html?ref=bullished.co).

Buybacks over the 12 months fell 61% to [$636 million](https://www.prnewswire.com/news-releases/ti-reports-third-quarter-2026-financial-results-and-shareholder-returns-302915896.html?ref=bullished.co), while dividends paid rose 5% to $5.17 billion. Total cash returned was $5.81 billion, down 11% from $6.56 billion.

Ilan said the company invested $2.6 billion in capital expenditures over the 12 months and $4.0 billion in R&D and SG&A, and returned $5.8 billion to owners.

## Outlook

For the fourth quarter, TI guided to revenue of $5.80 billion to $6.30 billion and earnings per share of $2.45 to $2.79\. The filing was accepted by EDGAR Wednesday after the market close; the stock closed Wednesday at $284.65\. The company scheduled its conference call for 3:30 p.m. Central on Wednesday.

The fourth-quarter report will show how actual revenue compares with the $5.80 billion to $6.30 billion range TI gave.

### Sources

- [8-K Filing — TEXAS INSTRUMENTS INC (TXN)](https://www.sec.gov/Archives/edgar/data/0000097476/000009747626000165/txn-20261021.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit q32026txnex99-eredgar.htm — TEXAS INSTRUMENTS INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000097476/000009747626000165/q32026txnex99-eredgar.htm?ref=bullished.co) — SEC EDGAR
- [TI reports third quarter 2026 financial results and shareholder returns](https://www.prnewswire.com/news-releases/ti-reports-third-quarter-2026-financial-results-and-shareholder-returns-302915896.html?ref=bullished.co) — prnewswire.com