Abstract
Texas Instruments will report its quarterly results on January 27, 2026 Post Market; this preview consolidates consensus forecasts and recent company disclosures to outline expected revenue, margins, and adjusted EPS, and highlights segment dynamics and prevailing institutional viewpoints.
Market Forecast
For the current quarter, market and company-derived forecasts indicate Texas Instruments revenue of $4.44 billion, up 14.69% year over year, with estimated EPS of $1.29 and EBIT of $1.46 billion, while year-over-year growth for EBIT is projected at 13.43% and for EPS at 7.48%. Forecast commentary implies the main business will show sequential stabilization with year-over-year improvement in margins; the outlook points to Analog as the highlight given its breadth across industrial and automotive demand. The most promising segment is Analog, with last quarter revenue of $3.73 billion and a robust recovery trajectory suggested by order trends and lead-time normalization; Embedded Processing remains smaller at $0.71 billion but leverages content gains in edge applications.
Last Quarter Review
Texas Instruments posted last quarter revenue of $4.74 billion, a gross profit margin of 57.42%, net profit attributable to the parent company of $1.36 billion, a net profit margin of 28.76%, and adjusted EPS of $1.48, with revenue up 14.24% year over year and adjusted EPS up 0.68% year over year. A notable highlight was quarter-on-quarter net profit growth of 5.33%, reflecting improving mix and incremental utilization in 300-millimeter analog capacity. Main business performance was led by Analog revenue of $3.73 billion and Embedded Processing at $0.71 billion, while Other contributed $0.30 billion; the mix indicates continued dominance of Analog across industrial and automotive end-markets.
Current Quarter Outlook
Main Business: Analog
Analog remains the core earnings engine, representing the majority of revenue and margin contribution. Demand indicators point to gradual improvement in industrial automation, power management, and automotive electronics content, which collectively support year-over-year revenue growth and stable-to-better gross margins. With analog catalog breadth and strong customer relationships, Texas Instruments is positioned to convert incremental orders into higher-margin shipments, aided by internal 300-millimeter manufacturing scale. Gross margin resilience near 57.42% last quarter provides a starting point, with forecasted EBIT growth of 13.43% aligning with a modest recovery in volume and mix. Pricing appears rational across broad-market analog, with lead times normalizing and inventory disciplines improving at key customers, which should help throughput and reduce discounting pressure.
Most Promising Business: Embedded Processing
Embedded Processing, though smaller, shows potential through microcontrollers and processors for edge and connected applications. The segment’s $0.71 billion last quarter baseline gives room for upside as industrial IoT deployments resume and automotive software-defined architectures expand. Content growth per vehicle—particularly in domain controllers, powertrain electrification, and ADAS support systems—offers a pathway for unit and ASP improvements. A measured recovery in embedded orders, observed in recent quarters, could translate into improved EBIT contribution despite higher engineering investment. While the absolute margin profile is below Analog, operational leverage from stabilizing volumes can lift segment profitability, supporting consolidated EPS growth of 7.48% year over year.
Key Share Price Drivers This Quarter
Stock performance into and out of the print will hinge on revenue and EPS delivery relative to the $4.44 billion and $1.29 benchmarks and commentary on demand sustainability across industrial and auto. Investors will focus on whether gross margin can hold near the high-50% range while factory utilization normalizes, as any deviation would recalibrate EBIT trajectory. Management’s color on order rates, backlog quality, and channel inventory will be scrutinized to validate the forecasted 14.69% revenue growth and 13.43% EBIT growth; clearer signs of broad-based demand recovery, especially in China-sensitive industrial verticals, could be a positive catalyst. Capital allocation themes—fab ramp timing, depreciation cadence, and opex discipline—will influence the EPS path and market’s assessment of multi-quarter margin durability.
Analyst Opinions
Institutional commentary over the recent months skews cautiously constructive, with the majority of published views expecting a year-over-year upturn led by industrial and automotive analog demand, while acknowledging uneven recovery across consumer and communications. Several well-followed sell-side desks frame the setup as improving into the quarter, emphasizing the benefit of internal manufacturing scale and product breadth; consensus leans toward meeting or slightly exceeding revenue and EBIT estimates if order trends continue. Analysts highlight gross margin stability as a key positive, noting flexibility from 300-millimeter fabs and a diversified end-market footprint that dampens volatility. Ratings language generally reflects balanced optimism, pointing to favorable year-over-year comparisons and incremental visibility, alongside watchful stance on inventory normalization and pricing dynamics. The majority view anticipates Texas Instruments to deliver in line with the $4.44 billion revenue and $1.29 EPS markers, with upside contingent on management’s commentary on backlog conversion and sustained demand from industrial automation and automotive electronics.
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