Why Is Texas Instruments Stock Moving Today?

Texas Instruments stock is moving on its third-quarter 2026 report, released after the close on Wednesday, October 21, 2026. Revenue rose 28% from a year earlier to $6.06 billion, above the $5.92 billion analysts expected, and earnings per share (EPS) of $2.62 beat the $2.42 forecast, according to LSEG data cited by Reuters. TI forecast fourth-quarter revenue of $5.80 billion to $6.30 billion, a range whose midpoint is about level with the third quarter.

TXN closed the regular session up 2.47% at $284.65, before the report. In thin after-hours trading it rose 2.52% in the first minute after the results reached the MoveSurge news feed at 16:02:05 ET, then was back at $286.00 ten minutes later. At 16:34:53 ET a headline reached the feed quoting chief executive Haviv Ilan, who told analysts on the call that data-center revenue grew about 95% from a year earlier. The stock went from $286.82 just before that headline to $283.69 eleven minutes later, a fall of 1.09%.

Why the forecast drew more attention than the beat

TI's third-quarter EPS of $2.62 came in above the top of the $2.23 to $2.57 range the company gave in July. The fourth-quarter forecast has a revenue midpoint of $6.05 billion, about level with the third quarter's $6.06 billion, and an EPS midpoint that matches the third-quarter result. Analysts at Cantor Fitzgerald had said before the report that expectations for TI were among the most aggressive in analog chips compared with normal seasonal patterns, Investing.com reported, and the stock had already risen 2.47% during the day.

Data centers have become a real business for TI

Ilan said data-center revenue grew about 95% from a year earlier and about 20% from the second quarter, and that it made up about 13% of third-quarter revenue. He said the business does not follow the usual seasonal pattern. Industrial revenue, TI's largest market, rose more than 40% from a year earlier and passed its previous peak from the third quarter of 2022. Automotive revenue grew in the mid-teens.

Cash flow after the factory build-out

TI spent heavily on new wafer factories in recent years, and its free cash flow has since risen sharply. Free cash flow over the past 12 months reached $8.4 billion, up from about $2.4 billion a year earlier, and that figure includes $1.6 billion of CHIPS Act incentives. Most of the cash went to dividends: $5.17 billion over 12 months, against $636 million spent on share repurchases. In September TI raised its quarterly dividend by 7% to $1.52 a share.

How the stock handled the last report

The second-quarter report on July 22, 2026 also beat forecasts, and the stock fell 3.06% after hours. The shares had risen about 70% that year going into the report, and Morgan Stanley described the results as meeting elevated expectations. This time TXN had risen 2.47% in the regular session before the release, and at 16:45 ET it was at $283.69, slightly below the close.