Texas Instruments Beats Q3 Estimates With $6.06B Revenue on Chip Demand

Texas Instruments $TXN reported third-quarter revenue of $6.06B, up 28% year-over-year and beating average analyst estimates of $5.93B, while net income rose 78% year-over-year to $2.43B, or $2.62 per share. The analog and embedded processing chipmaker forecast fourth-quarter revenue between $5.8B and $6.3B alongside profit of $2.45 to $2.79 per share, ahead of Wall Street estimates of $5.73B in sales and $2.26 per share. CEO Haviv Ilan stated on an analyst call that the company's data center business grew 95% and now accounts for about 13% of revenue, driven by power management chips and components used in servers and networking. To meet rising orders across automotive, industrial, and data center markets, Texas Instruments expects 2026 spending on new plants and equipment to reach the higher end of its $2B to $3B budget, though Ilan noted that supply expansion is constrained by waiting times for high-demand chipmaking equipment. Shares of Texas Instruments were little changed in extended trading after closing at $284.65 in New York, following a 64% gain this year through the close.