Key Highlights

  • Texas Instruments (NASDAQ:TXN) reported third-quarter revenue up about 28% to USD 6.06 billion on Wednesday, October 21, 2026, and shares rose between 2% and 7% after hours depending on the quote.
  • Net income rose 78% to USD 2.43 billion, so profit grew almost three times as fast as revenue in the quarter, a measure of operating leverage on a largely fixed cost base.
  • Fourth-quarter guidance points to revenue roughly flat with the third quarter, against the usual seasonal decline, with earnings per share guided at USD 2.45 to USD 2.79.
  • Lam Research reported on the same evening and fell after hours, so the session split chip stocks between cycle beneficiaries such as analog makers and supply-constrained equipment toolmakers.

Three Numbers From One Quarter

Texas Instruments (NASDAQ:TXN), the largest US maker of analog and embedded processing chips, reported third-quarter results after the close on Wednesday, October 21, 2026. Revenue rose 27.8% to USD 6.06 billion, which implies a year-ago base of about USD 4.74 billion on simple arithmetic. Net income rose 78% to USD 2.43 billion. The company guided fourth-quarter earnings per share to USD 2.45 to USD 2.79 and indicated revenue roughly flat with the third quarter, where the fourth quarter usually brings a seasonal dip. Shares rose between 2% and 7% after hours, depending on the quote and time. The report shared the evening with Lam Research (NASDAQ:LRCX), whose shares fell after hours despite record revenue.

Why Flat Guidance Reads as Strength

For Texas Instruments (NASDAQ:TXN), a flat fourth quarter matters more than the beat. Analog chips manage power and signals in cars, factories and appliances, and orders typically fade late in the year as customers trim stock. Guiding flat instead implies that demand or restocking is offsetting that pattern. The profit lever is fixed cost. TI has spent heavily on 300-millimetre wafer fabs in Texas and Utah, and depreciation on those plants is largely fixed, so extra volume falls quickly to profit. That is visible in net income growing 78% against revenue growth of about 28%. With fixed costs largely covered, the flat guide therefore extends the period of high utilisation, meaning factories running closer to capacity, into a quarter that is normally weaker.

Risks and What to Watch

The first risk for Texas Instruments (NASDAQ:TXN) is that the flat guide reflects customer restocking rather than end demand, which would reverse once inventories normalise. The second is exposure to industrial and automotive customers, both sensitive to tariffs and higher borrowing costs, with the Fed having raised rates on Wednesday, September 16, 2026 to 3.75% to 4.00%. The third is that the after-hours gain varied widely, from about 2% to 7%, so the regular-session move on Thursday may differ materially. Investors should watch Western Digital (NASDAQ:WDC) results on Thursday, October 22, 2026, the Federal Reserve decision on Wednesday, October 28, 2026 and the midterm elections on Tuesday, November 3, 2026.

Where Things Stand

The answer is that Texas Instruments (NASDAQ:TXN) told investors the analog upturn should hold through a quarter that usually softens. Revenue up about 28% and net income up 78% show how fixed-cost leverage amplifies volume gains. The guide of USD 2.45 to USD 2.79 per share sets the next bar. The next catalysts are Western Digital on October 22, the Fed decision on October 28 and the midterms on November 3. Guidance is a forecast, not a guarantee, and this is not investment advice.