Texas Instruments Incorporated (NASDAQ: TXN) delivered stronger-than-expected first-quarter results, sending shares up 9% in after-hours trading to $256.20. The rally set a fresh all-time high and extended a strong year-long uptrend.
Earnings and Revenue Beat Expectations
The company reported adjusted earnings per share (EPS) of $1.68, comfortably ahead of analyst estimates of $1.36. Revenue also surpassed expectations, coming in at $4.83 billion versus forecasts of $4.52 billion.
On a year-over-year basis, revenue grew 19%, supported by sustained demand across key end markets. The management attributed the growth primarily to strength in the industrial and data center segments.
Providing further insight, CEO Haviv Ilan highlighted that revenue rose 9% sequentially and 19% year over year, reiterating that industrial and data center demand were the main growth engines for the quarter.
Upbeat Q2 Guidance
Building on the solid Q1 performance, Texas Instruments issued an upbeat outlook for the second quarter.
The company expects EPS between $1.77 and $2.05, with a midpoint of $1.91—well above the analyst consensus of $1.56. Revenue is projected to range from $5.00 billion to $5.40 billion, with a midpoint of $5.20 billion, also ahead of market expectations of $4.87 billion.
Analog Segment Powers Top-Line Acceleration
Profitability metrics also showed meaningful improvement during the quarter. Operating profit rose 37% year over year to $1.81 billion, while net income climbed 31% to $1.55 billion.
A closer look at business segments highlights where this growth originated. The Analog division, which remains the company’s largest segment, generated $3.92 billion in revenue, up 22% from a year earlier. Its operating profit climbed 36% to $1.64 billion.
Meanwhile, the Embedded Processing segment continued its steady expansion, posting revenue of $723 million. This represented a 12% increase from the prior year.
Cash Flow and Shareholder Returns
The chipmaker maintained robust cash generation over the past year, with operating cash flow reaching $7.82 billion on a trailing 12-month basis and free cash flow totaling $4.35 billion.
This strong cash position supported significant shareholder returns, with the company distributing $6.03 billion through dividends and share repurchases over the same period.
Reinforcing its commitment to shareholder returns, the board recently declared a quarterly dividend of $1.42 per share, payable on May 19, 2026, to shareholders of record as of May 5, 2026.
Analyst Sentiment and Market Performance
Ahead of the earnings release, several brokerage firms reaffirmed their positions on Texas Instruments (NASDAQ: TXN) stock. Evercore ISI maintained an “Outperform” rating with a $270 price target, while Stifel kept its “Buy” rating and a $250 target.
At the same time, Aletheia Capital revised its stance, upgrading the stock from “Sell” to “Hold.” The Hong Kong-based investment research and advisory firm also raised its price target to $220 from $190.
Despite mixed target revisions, TXN shares continue to trade above several analyst price targets at $256.20. Over the past year, the stock has surged 61%, reflecting sustained investor confidence in the company’s long-term outlook.
