Texas Instruments stock gains as dividend rises 7 percent
π Texas Instruments stock gained 1.68% to close at $271.11 on September 22, 2026, following a strong earnings report and dividend hike.
π° The company raised its quarterly dividend by 7% to $1.52 per share, marking the 23rd consecutive year of dividend growth.
π Q2 revenue reached $5.46 billion, up 22.8% year-over-year from $4.45 billion in the same quarter last year.
πΉ Quarterly earnings per share hit $2.14, beating analyst consensus by $0.23 and rising $0.73 compared to the prior year.
π Texas Instruments guided for Q3 2026 EPS between $2.23 and $2.57, indicating continued profitability growth.
π Analysts maintain a Moderate Buy consensus with an average one-year price target of $312.12, implying upside potential.
Bullish Signals
- Texas Instruments raised its quarterly dividend by 7% to $1.52 per share, marking the 23rd consecutive year of dividend growth and lifting the annualized payout to $6.08.
- The company reported Q2 revenue of $5.46 billion, a robust 22.8% increase year-over-year compared to $4.45 billion in the same quarter of 2025.
- Texas Instruments delivered quarterly EPS of $2.14, which beat analyst consensus by $0.23 and represented a $0.73 year-over-year increase.
- The stock closed up 1.68% at $271.11 as investors reacted positively to the combination of strong operating figures and the higher dividend payout.
- Analysts maintain a consensus Moderate Buy rating with an average one-year price target of $312.12, suggesting significant upside from the current trading price.
Full Analysis
Texas Instruments shares rose 1.68% to close at $271.11 on September 22, 2026, driven by a 7% quarterly dividend increase and strong second-quarter financial results. The semiconductor manufacturer reported Q2 revenue of $5.46 billion, representing a significant 22.8% year-over-year increase compared to the $4.45 billion recorded in the same quarter of 2025.
The company delivered quarterly earnings per share of $2.14, which beat analyst consensus estimates by $0.23 and showed a substantial $0.73 increase from the prior year. This robust profitability supports the raised dividend payout, bringing the annualized distribution to $6.08 per share while maintaining a payout ratio of 86.45%.
Looking ahead, Texas Instruments provided guidance for the third quarter of 2026 with expected EPS between $2.23 and $2.57, setting a higher profit bar than the previous quarter's performance. Analysts maintain a consensus Moderate Buy rating with an average one-year price target of approximately $312.12, suggesting potential upside from current levels.