Texas Instruments Beats Q3 Forecasts on Industrial Recovery

Texas Instruments reported third-quarter 2026 financial results on October 21 that exceeded Wall Street forecasts for both profit and revenue. Quarterly revenue rose 28% year-on-year to $6.06 billion, while diluted earnings per share jumped 77% to $2.62.

Growth was driven by a cyclical recovery in the industrial segment, which rose more than 40% year-over-year to reach a new four-year peak. The data center segment saw a 95% increase as AI infrastructure boosted demand for analog and embedded chips used in cooling and power conversion. The automotive sector also contributed mid-teens growth.

Looking ahead, the company forecasts fourth-quarter revenue between $5.80 billion and $6.30 billion and earnings per share between $2.45 and $2.79, both of which surpass analyst estimates. Despite this optimistic guidance, the company holds $4.7 billion in inventory, representing 194 days of supply, which presents a potential cash risk if demand stalls.