AI Earnings Predictions for Texas Instruments Incorporated (TXN)

EX-99

2 q32026txnex99-eredgar.htm

EX-99

Document

Exhibit 99

TI reports third quarter 2026 financial results and shareholder returns

Conference call at 3:30 p.m. Central time today on ti.com/ir

DALLAS (Oct. 21, 2026) – Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $6.06 billion, net income of $2.43 billion and earnings per share of $2.62. Earnings per share included a 1-cent reduction that was not in the company's original guidance.

Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:

•"Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.

•"Our cash flow from operations of $9.9 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $8.4 billion.

•"Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.8 billion to owners.

•"TI's fourth quarter outlook is for revenue in the range of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79."

1

Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.

Earnings summary

(In millions, except per-share amounts)Q3 2026Q3 2025Change

Revenue$6,055 $4,742 28 %

Operating profit$2,874 $1,663 73 %

Net income$2,425 $1,364 78 %

Earnings per share$2.62 $1.48 77 %

Cash generation

Trailing 12 Months

(In millions)Q3 2026Q3 2026Q3 2025Change

Cash flow from operations$3,419 $9,896 $6,897 43 %

Free cash flow$2,956 $8,422 $2,415 249 %

Free cash flow % of revenue40.6 %14.0 %

Cash return

Trailing 12 Months

(In millions)Q3 2026Q3 2026Q3 2025Change

Dividends paid$1,298 $5,174 $4,949 5 %

Stock repurchases$48 $636 $1,611 (61)%

Total cash returned$1,346 $5,810 $6,560 (11)%

2

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of IncomeFor Three Months Ended September 30,

(In millions, except per-share amounts)20262025

Revenue$6,055 $4,742

Cost of revenue (COR)2,168 2,019

Gross profit3,887 2,723

Research and development (R&D)530 518

Selling, general and administrative (SG&A)476 457

Acquisition charges7 —

Restructuring charges/other— 85

Operating profit2,874 1,663

Other income (expense), net (OI&E)72 62

Interest and debt expense141 141

Income before income taxes2,805 1,584

Provision for income taxes380 220

Net income$2,425 $1,364

Diluted earnings per common share$2.62 $1.48

Average shares outstanding:

Basic914 909

Diluted921 914

Cash dividends declared per common share$1.42 $1.36

Supplemental Information (Quarterly, except as noted)

Provision for income taxes is based on the following:

Operating taxes (calculated using the estimated annual effective tax rate)$390 $249

Discrete tax items(10)(29)

Provision for income taxes (effective taxes)$380 $220

A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following:

Net income$2,425 $1,364

Income allocated to RSUs(14)(8)

Income allocated to common stock for diluted EPS$2,411 $1,356

3

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Balance SheetsSeptember 30,

(In millions, except par value)20262025

Assets

Current assets:

Cash and cash equivalents$4,211 $3,311

Short-term investments3,931 1,875

Accounts receivable, net of allowances of ($27) and ($21) 2,620 2,062

Raw materials497 431

Work in process2,482 2,460

Finished goods1,693 1,938

Inventories4,672 4,829

Prepaid expenses and other current assets1,446 1,799

Total current assets16,880 13,876

Property, plant and equipment at cost18,072 17,314

Accumulated depreciation(6,239)(4,966)

Property, plant and equipment11,833 12,348

Goodwill4,330 4,362

Deferred tax assets1,054 1,089

Capitalized software licenses301 237

Overfunded retirement plans320 251

Other long-term assets2,121 2,841

Total assets$36,839 $35,004

Liabilities and stockholders' equity

Current liabilities:

Current portion of long-term debt$650 $500

Accounts payable837 779

Accrued compensation675 724

Income taxes payable60 79

Accrued expenses and other liabilities795 1,036

Total current liabilities3,017 3,118

Long-term debt12,905 13,546

Underfunded retirement plans118 125

Deferred tax liabilities62 60

Other long-term liabilities1,552 1,528

Total liabilities17,654 18,377

Stockholders' equity:

Preferred stock, $25 par value. Shares authorized – 10; none issued— —

Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,7411,741 1,741

Paid-in capital5,202 4,410

Retained earnings54,282 52,369

Treasury common stock at cost

Shares:

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