Key Highlights

  • Texas Instruments (NASDAQ:TXN) rose 11.14% over one month to USD 308.51 and 10.45% over the latest week in published market data as of October 28, 2026, and it is up 76.33% year to date.
  • Third-quarter revenue was USD 6,055 million, up 27.7% year over year and 11.0% from the second quarter, with diluted EPS of USD 2.62 against USD 1.48 a year earlier.
  • Gross margin rose 6.8 points to 64.2%, and operating margin reached 47.5%, which shows how much extra revenue is flowing through to profit in the quarter.
  • Fourth-quarter guidance is revenue of USD 5.80 billion to USD 6.30 billion and EPS of USD 2.45 to USD 2.79, so the midpoint implies roughly flat sales.

What the Company Reported

Texas Instruments (NASDAQ:TXN) published third-quarter 2026 results that were analysed on October 22, 2026. Revenue of USD 6,055 million rose 27.7% from a year earlier and 11.0% from the prior quarter. Net income was USD 2,425 million, up 77.8%, and operating profit was USD 2,874 million, up 72.8%. Analog revenue was USD 4,911 million, up 31.7%, with a 51.0% operating margin, while Embedded Processing revenue was USD 858 million, up 21.0%, with operating profit up 110.2% to USD 227 million. Growth was credited to industrial, automotive and data center markets, although data center revenue was not broken out in the figures retrieved. Both segments grew, so the strength was not confined to one product line, and the quarter was a clear recovery from the lower sales base of a year earlier.

Why Margins Matter

Gross margin rose to 64.2%, up 6.8 points, and operating margin was 47.5%. Higher utilization of factories makes each extra dollar of revenue more profitable, because fixed manufacturing costs are spread over more units. Trailing twelve-month free cash flow was USD 8,422 million and the board declared a quarterly dividend of USD 1.42 per share. The 10.45% weekly gain, as shown in published market data, spans the report, while the exact share reaction on the day was not retrieved. Analog peers also benefited, as Analog Devices (NASDAQ:ADI) rose 7.62% over the same week. Margin expansion of this size usually follows a recovery in factory loading after a period of weak orders, which is analysis and not a company statement. The company's own commentary points to customer demand across several end markets rather than one.

Risks and What to Watch

Guidance of USD 5.80 billion to USD 6.30 billion has a midpoint of USD 6.05 billion, about equal to the third quarter (simple arithmetic), which means the sequential surge may be pausing. The company named customer inventory adjustments, timing of end-market demand and trade policy or tariff changes as risks. A rise of 76.33% in 2026 leaves expectations high, so any stall in industrial or data center orders could hit the shares hard. The fourth-quarter report is the next test. The company also pays a regular dividend, which supports the equity story, but it does not protect against a cyclical pause. Semiconductor revenue can move quickly when customers change orders, and a company with high fixed costs sees profit fall faster than sales in a downturn.

Where Things Stand

The answer is that Texas Instruments (NASDAQ:TXN) jumped 11.14% because third-quarter results showed revenue up 27.7%, EPS up 77% and margins expanding sharply, backed by growth in industrial, automotive and data center markets. At USD 308.51 as of October 28, 2026 and up 76.33% this year, much of the good news is already in the price. The guidance midpoint implies flat sales next quarter, so the next catalyst is whether orders keep rising or customers start adjusting inventory.