Texas Instruments Incorporated

(NASDAQ Global Select)
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Bullish +75

Texas Instruments CEO Sees No Slowdown in Data Center Demand: 'Actually ...

AI infrastructure Capacity expansion Earnings report AI-generated analysis

πŸ“ˆ Texas Instruments beat Q3 earnings estimates with $2.62 EPS on $6.06 billion revenue.

πŸš€ Data Center revenue surged 95% year-over-year, driven by growing demand for power-efficient chips.

🏭 Industrial revenue jumped over 40%, supported by strong performance in automotive and general industrial markets.

πŸ’° Q4 guidance raised with EPS expected between $2.45 and $2.79 on revenue of $5.8B-$6.3B.

πŸ”§ CEO Gadi Katz confirmed no slowdown in data center spending despite broader market concerns.

πŸ—οΈ The company is ramping new technology at its Sherman facility and nearing completion of the second Lehi facility.

πŸ€– Texas Instruments estimates semiconductor content in humanoid robots could reach $500-$1,000 per unit.

⚑ Automotive electrification grew at roughly twice the company's overall rate, supported by EV exports from China.

πŸ’Έ Management reaffirmed a long-term gross-profit fall-through framework of 75% to 85% excluding depreciation.

πŸ“‰ Analog revenue rose 32% year-over-year as pricing showed modest improvement in the second half of 2026.

Bullish Signals
  • Texas Instruments beat Q3 earnings estimates with $2.62 EPS on $6.06 billion revenue, exceeding analyst consensus.
  • Data Center revenue surged 95% year-over-year, indicating robust demand for the company's power management and analog chips.
  • Industrial revenue jumped over 40%, driven by strong performance in automotive and general industrial markets.
  • Q4 guidance raised with EPS expected between $2.45 and $2.79 on revenue of $5.8B-$6.3B, both above consensus.
  • CEO Gadi Katz confirmed no slowdown in data center spending, citing growing demand as the company expands its portfolio.
  • Automotive electrification grew at roughly twice the company's overall rate, supported by rising EV exports from China.
  • Analog revenue rose 32% year-over-year, with modest pricing improvements observed in the second half of 2026.
Full Analysis
Texas Instruments reported third-quarter earnings of $2.62 per share, surpassing Wall Street estimates of $2.41, with revenue climbing to $6.06 billion against a consensus of $5.92 billion. The company issued upbeat fourth-quarter guidance, projecting earnings between $2.45 and $2.79 per share on revenue expected to range from $5.8 billion to $6.3 billion, both figures exceeding analyst expectations. Growth was driven primarily by surging demand in the Data Center and Industrial sectors, where revenue jumped 95% and over 40% year-over-year, respectively. CEO Gadi Katz emphasized that data center spending is not slowing but actually growing as the company expands its chip portfolio to capture market share, while Analog revenue rose 32% and Embedded Processing increased 21%. Looking ahead, Texas Instruments plans to expand manufacturing capacity at its Sherman and Lehi facilities and in Malaysia to meet rising demand, with 2026 capital expenditures expected between $2 billion and $3 billion. The company sees significant opportunities in automotive electrification, AI infrastructure, and robotics, estimating that semiconductor content in future humanoid robots could reach $500 to $1,000 per unit.