VLSI KoreaTexas Instruments Q3 2026 Earnings (Analog, Data Center) — 12 Facts
Texas Instruments Q3 2026 revenue of US$6.06B (+28%), data center revenue up 95%, EPS of US$2.62 and trailing-12-month free cash flow of US$8.42B — 12 facts verified from the official release and earnings call.
The one-line takeaway: Texas Instruments' Q3 2026 results show in hard numbers that AI data center power demand is pulling analog chips up with it, not just GPUs — revenue rose 28% year over year, and data center revenue surged 95%.
First, the check: what do these numbers actually prove?
The common view in the semiconductor industry has been that AI spending benefits digital accelerator chips like NVIDIA's. Texas Instruments' Q3 results, reported on October 21, 2026, are a direct test of that view. TI does not make AI chips. It makes the analog and power semiconductors that manage electricity inside servers — and its data center revenue still grew 95% year over year. The one caveat: the midpoint of Q4 guidance sits roughly flat versus Q3, so the growth pace pauses for a quarter. The 12 facts below are drawn only from the official press release (October 21, 2026) and the same day's earnings call.
| Item | Q3 2026 | Year-over-year |
|---|---|---|
| Revenue | US$6,055M | +28% |
| Operating profit | US$2,874M | +73% |
| Net income | US$2,425M | +78% |
| EPS | US$2.62 | +77% |
| Gross margin | 64.2% | — |
| Free cash flow (quarter) | US$2,956M | — |
12 facts
1. Revenue was US$6.06B — up 28% year over year and 11% sequentially
Q3 revenue came in at US$6,055M, up 28% from US$4,742M a year ago and up 11% from the prior quarter. Chairman, president and CEO Haviv Ilan pointed to continued broad growth across industrial, automotive and data center. (Source: TI official press release, Oct 21, 2026)
2. Net income rose 78% and EPS was US$2.62
Net income was US$2,425M, up 78% year over year, and diluted EPS was US$2.62, up 77%. EPS included a 1-cent reduction that was not in the company's original guidance. (Source: TI official press release)
3. Operating profit rose 73% and the operating margin is about 47%
Operating profit was US$2,874M, up 73% year over year. Gross profit was US$3,887M, a gross margin of 64.2%. Profit growing far faster than revenue (28%) is what the shift to 300mm production looks like when it reaches the income statement. (Source: TI official press release, income statement)
4. Analog produced 81% of total revenue
Analog revenue was US$4,911M, up 32% year over year, with operating profit of US$2,505M, up 69%. Analog accounts for 81% of TI's total revenue of US$6,055M. (Source: TI official press release, segment results)
5. Embedded Processing operating profit more than doubled
Embedded Processing revenue was US$858M, up 21%, while operating profit reached US$227M, up 110% year over year — profit growing nearly five times faster than revenue in this segment. (Source: TI official press release, segment results)
6. Data center revenue surged about 95% year over year
On the earnings call, management said data center revenue grew roughly 95% year over year to about 13% of total revenue. TI sells power management, not compute — direct evidence that AI infrastructure spending is spreading into power semiconductors. (Source: TI earnings call, Oct 21, 2026)
7. Growth was broad-based: industrial, automotive and data center
Ilan said revenue growth came across industrial, automotive and data center, not from a single market. The recovery in TI's core industrial and automotive demand landed in the same quarter as the data center surge. (Source: TI official press release, CEO comments)
8. Q4 guidance: revenue of US$5.80–6.30B and EPS of US$2.45–2.79
The company guided Q4 revenue to US$5.80B–US$6.30B and EPS to US$2.45–US$2.79. The revenue midpoint (US$6.05B) is roughly level with Q3, meaning year-over-year growth holds even through the seasonally softer quarter. (Source: TI official press release)
9. Free cash flow was US$2.96B in the quarter and US$8.42B over 12 months
Q3 cash flow from operations was US$3,419M and free cash flow was US$2,956M. Trailing-12-month free cash flow reached US$8,422M, up 249% from US$2,415M a year ago, equal to 40.6% of revenue. (Source: TI official press release, cash flow statement)
10. Capex fell to US$463M — about a third of the year-ago quarter
Q3 capital expenditures were US$463M, 39% of the US$1,197M spent a year earlier. Trailing-12-month capex was US$2,578M. The heavy 300mm fab investment cycle is past its peak, and the model is shifting toward cash accumulation. (Source: TI official press release, cash flow statement)
11. Inventory fell year over year in a quarter when revenue rose 28%
Inventories ended Q3 at US$4,672M, below the US$4,829M of a year ago. Holding less inventory than last year while shipping 28% more revenue points to end-demand pull rather than channel stuffing. (Source: TI official press release, balance sheet)
12. Shareholder returns were US$5.81B over 12 months; the quarterly dividend is US$1.42
Over the trailing 12 months TI returned US$5,810M to owners — US$5,174M in dividends plus US$636M in stock repurchases. The declared Q3 dividend was US$1.42 per share, up from US$1.36 a year ago. (Source: TI official press release)
What these 12 facts add up to
- Demand check: AI data center spending now visibly extends beyond compute chips into power and analog. Data center revenue up 95% is the proof point.
- Cash quality: With the investment cycle past its peak, free cash flow exceeds 40% of revenue — growth and cash generation at the same time.
- Next checkpoints: whether Q4 revenue lands at the US$6.05B guidance midpoint, whether data center climbs above 13% of revenue, and whether the industrial recovery holds.
Frequently asked questions
What were Texas Instruments' Q3 2026 revenue and EPS? Revenue was US$6,055M, up 28% year over year, and diluted EPS was US$2.62, up 77%. Net income was US$2,425M. (TI official press release, Oct 21, 2026)
How fast did TI's data center revenue grow? Management said on the earnings call that data center revenue grew about 95% year over year to roughly 13% of total revenue.
What is TI's Q4 2026 guidance? Revenue of US$5.80–6.30B and EPS of US$2.45–2.79. The revenue midpoint is roughly level with Q3.
How strong is TI's free cash flow? Q3 free cash flow was US$2,956M and trailing-12-month free cash flow was US$8,422M, or 40.6% of revenue. Quarterly capex fell to US$463M, about a third of the year-ago level.
Sources: Texas Instruments official press release (Oct 21, 2026) and Q3 2026 earnings call (Oct 21, 2026). This article is for information only and is not investment advice.
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