Key Stats for Texas Instruments Stock
- Price change for TXN stock: 8%
- $TXN Share Price as of Jan. 27: $197
- 52-Week High: $222
- $TXN Stock Price Target: $195
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What Happened?
Texas Instruments (TXN) stock jumped over 8% in pre-market after the chipmaker issued stronger-than-expected guidance for the first quarter of 2026.
- The company now projects earnings per share of $1.22 to $1.48, with revenue of $4.32 billion to $4.68 billion.
- Wall Street analysts had expected earnings of $1.26 per share on $4.42 billion in revenue.
- The midpoint of Texas Instruments’ guidance suggests earnings of $1.35 per share on $4.50 billion in sales, both ahead of consensus estimates.
This optimistic outlook comes despite the company missing Wall Street’s fourth-quarter earnings and revenue estimates.
CEO Haviv Ilan pointed to improving order trends throughout Q4 and stronger bookings as key drivers of the upbeat forecast.
The company highlighted particular strength in its industrial and data center segments.
Industrial revenue grew nearly 18% year-over-year in Q4, while the data center business has now posted growth for seven consecutive quarters.
TXN stock is also benefiting from rising demand for chips used in automotive applications, even as that sector faces near-term headwinds from typical seasonal patterns.
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What the Market Is Telling Us About TXN Stock
The sharp rally in TXN stock suggests investors are encouraged by signs of recovery in the semiconductor market after a prolonged downturn.
Texas Instruments’ ability to issue above-seasonal guidance for Q1 marks a significant shift. According to management, this represents the first time in roughly 15 years that the company has guided for sequential revenue growth in the first quarter.
Investors appear particularly pleased with Texas Instruments’ inventory management and manufacturing strategy.
The company has built up $4.8 billion in inventory positioned to meet immediate customer demand, especially as “turns business” (last-minute orders requiring quick shipment) remains elevated.
Management also emphasized that their substantial investments in U.S.-based manufacturing capacity over the past several years have positioned them well for this recovery.
With competitive lead times averaging below 13 weeks and strong cash flow generation, TXN stock looks well-positioned to capitalize on improving demand trends.
The market’s positive reaction reflects confidence that the worst of the semiconductor downturn may be behind us, at least for diversified analog chipmakers like Texas Instruments.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
