Texas Instruments (NASDAQ:TXN) Shares Gap Up Following Better-Than-Expected Earnings

Texas Instruments Incorporated (NASDAQ:TXN)’s stock price gapped up before the market opened 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 changing hands.

The semiconductor company reported $1.68 EPS for the quarter, beating the consensus estimate of $1.37 by $0.31. Texas Instruments had a net margin of 29.11% and a return on equity of 32.66%. The company had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.85 billion. During the same quarter last year, the business earned $1.23 earnings per share. Texas Instruments’s revenue was up 18.6% compared to the same quarter last year. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS.

Texas Instruments Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Tuesday, May 5th will be paid a $1.42 dividend. The ex-dividend date is Tuesday, May 5th. This represents a $5.68 annualized dividend and a dividend yield of 2.0%. Texas Instruments’s dividend payout ratio (DPR) is presently 104.41%.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Q1 results beat Street estimates (EPS and revenue), and TI issued Q2 guidance well above consensus — the core trigger for the rally as investors reprice earnings durability and margins. Texas Instruments’ stock jumps 18%, heads for best day since 2000 as AI demand soars
• Positive Sentiment: Bank of America upgraded TXN to Buy and raised its price target to $320, amplifying bullish investor sentiment and providing a high‑profile validation of the “industrial + AI/data‑center” thesis. BofA Just Upgraded Texas Instruments to Buy With a $320 Target. Is This the Ultimate Industrial AI Chip Play?
• Positive Sentiment: Multiple firms raised ratings and targets (examples: JPMorgan to $280/Overweight, Rosenblatt and others boosting targets into the $300s), reinforcing buying momentum from institutions and analysts. These Analysts Boost Their Forecasts On Texas Instruments After Upbeat Q1 Earnings
• Positive Sentiment: Analysts and outlets point to a twin demand driver — industrial (manufacturing, aero/defense) recovery plus accelerating data‑center infrastructure spending — which supports both revenue growth and higher margins. Texas Instruments To Benefit From Industrial Resurgence, Data Center Demand, BofA Says
• Neutral Sentiment: Broader market volatility (midday declines tied to oil price moves and macro headlines) could cap gains or produce pullbacks despite company‑specific strength. US Equity Indexes Decline as Corporate Earnings Weigh, Hormuz Standstill Continues
• Neutral Sentiment: TI’s strong outlook has buoyed other analog/semiconductor names (On Semi, ADI), suggesting sector‑wide positioning may amplify flows into TXN but also raise correlation risk. On Semi and Analog Devices Stocks Head for Record Highs. Thank Texas Instruments.
• Negative Sentiment: Notable insider selling has been reported recently, which some investors view as a cautionary signal even as results are strong. Monitor insider activity and whether demand proves persistent. Texas Instruments Insiders Sold US$6.6m Of Shares Suggesting Hesitancy

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. BNP Paribas Exane upgraded shares of Texas Instruments from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 22nd. Susquehanna restated a “positive” rating and issued a $300.00 price target on shares of Texas Instruments in a research note on Thursday. Weiss Ratings lowered shares of Texas Instruments from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday. Benchmark raised their price target on shares of Texas Instruments from $250.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Truist Financial raised their price target on shares of Texas Instruments from $225.00 to $278.00 and gave the company a “hold” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, Texas Instruments has an average rating of “Hold” and an average target price of $257.68.

Insider Activity

In related news, VP Hagop H. Kozanian sold 6,843 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $225.95, for a total transaction of $1,546,175.85. Following the completion of the sale, the vice president directly owned 75,425 shares in the company, valued at approximately $17,042,278.75. This trade represents a 8.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Mark A. Blinn sold 3,144 shares of the firm’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 sale, the director owned 11,670 shares of the company’s stock, valued at $2,585,838.60. The trade was a 21.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 114,284 shares of company stock valued at $25,531,935 in the last ninety days. 0.60% of the stock is owned by company insiders.

Institutional Trading of Texas Instruments

A number of large investors have recently added to or reduced their stakes in TXN. Norges Bank bought a new stake in Texas Instruments during the fourth quarter worth approximately $2,516,628,000. Amundi boosted its holdings in Texas Instruments by 61.0% during the third quarter. Amundi now owns 9,445,243 shares of the semiconductor company’s stock worth $1,717,240,000 after buying an additional 3,580,147 shares in the last quarter. Van ECK Associates Corp boosted its holdings in Texas Instruments by 27.1% during the fourth quarter. Van ECK Associates Corp now owns 11,608,265 shares of the semiconductor company’s stock worth $2,013,918,000 after buying an additional 2,474,062 shares in the last quarter. Invesco Ltd. lifted its position in shares of Texas Instruments by 16.8% in the 3rd quarter. Invesco Ltd. now owns 16,435,001 shares of the semiconductor company’s stock valued at $3,019,603,000 after acquiring an additional 2,366,695 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in shares of Texas Instruments by 22.4% in the 4th quarter. Bank of New York Mellon Corp now owns 12,273,233 shares of the semiconductor company’s stock valued at $2,129,283,000 after acquiring an additional 2,250,174 shares in the last quarter. 84.99% of the stock is currently owned by institutional investors.

Texas Instruments Trading Up 19.4%

The company has a current ratio of 4.35, a quick ratio of 2.83 and a debt-to-equity ratio of 0.83. The firm has a market cap of $256.96 billion, a PE ratio of 48.33, a P/E/G ratio of 2.14 and a beta of 1.01. The company’s 50-day moving average is $208.08 and its 200 day moving average is $190.39.

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.