Texas Instruments (TXN)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
$258.44+1.82%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
Warn: Primary pillar under pressure — EPS rises to $1.91 in Q2 2026: EPS $2.14 vs $1.91 target (+12.0%).
Texas Instruments grows revenue about 17% next year. Profit per share rises to about $7.68 in 2026. New products and acquisitions boost sales in key sectors. The company keeps improving earnings and revenue steadily.
Revenue growth slows below 10% next year. Profit margins shrink due to rising costs or weak demand. Integration of acquisitions fails to deliver expected synergies.
The stock price is about 34% above our valuation estimate and 25% below the median analyst price. Analysts expect about 17% revenue growth next year. Our view is more cautious on growth sustainability.
Breaks if: EPS falls below $1.77 in Q2 2026
Breaks if: Synergies fail to reach $450 million by 2029
Breaks if: Revenue falls below $5.0 billion in Q2 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a stable management team. The current thesis remains intact, supported by strong financial performance and a focus on growth.
The market seems to have priced in a neutral valuation, with TXN appearing cheap compared to its peers. There is an expectations gap, indicating that the market may not fully reflect the company's recent strong results.
Management is likely to continue focusing on increasing revenue and earnings per share, as they have consistently done in recent quarters. While free cash flow remains strong, the mixed status of capital expenditures suggests some caution in future investments.
The long-term thesis hinges on whether TXN can maintain its growth trajectory and avoid cutting guidance in the near term. Additionally, favorable market conditions, such as potential Fed rate cuts and positive performance from sector leaders, could support TXN's growth.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat enhances EPS growth outlook. Strong end-market demand supports revenue and earnings growth. Additionally, a rating upgrade indicates stronger revenue and earnings expectations.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on increasing revenue for the second quarter of 2026.
Overall, TXN's strong fundamentals and management focus provide a solid foundation for the next few years. Not investment advice.