TXN

Zacks Research Daily presents analysis of 16 major stocks on October 23, 2026. Apple receives a Neutral rating despite strong AI capabilities and device ecosystem, citing supply constraints and margin pressures.

Berkshire Hathaway maintains Neutral stance with balanced risk-reward profile. Goldman Sachs outperforms its industry with strong earnings, though rising spending concerns remain. Additional coverage includes Texas Instruments benefiting from AI data center demand, RTX facing supply chain challenges, and various other companies with mixed outlooks.

Texas Instruments has been upgraded to a Zacks Rank #1 (Strong Buy) rating, reflecting upward trends in earnings estimates. The chipmaker is expected to earn $8.67 per share for fiscal year 2026 with no year-over-year change, but analysts have raised consensus estimates by 3.9% over the past three months. The upgrade positions TXN in the top 5% of Zacks-covered stocks, suggesting potential near-term stock price appreciation driven by improving earnings outlook.

Market update for October 23rd showing tech stocks declining while oil prices rose and treasury yields fell below 5%. Three stocks with strong buy ratings and income characteristics are highlighted: Hasbro, Texas Instruments, and Universal Insurance Holdings.

Five stocks were added to the Zacks Rank #1 (Strong Buy) list today. Universal Insurance Holdings showed the strongest earnings estimate growth at 26.4% over 60 days, while Hasbro, Texas Instruments, United Rentals, and Intuitive Surgical showed more modest earnings estimate increases ranging from 0.3% to 1.9%.

Texas Instruments reported Q3 2026 revenue of $6.1 billion with gross margins expanding to 64%, driven by strong industrial and data center demand. The company is increasing capital expenditures to $3 billion to expand internal manufacturing capacity, securing supply chain control and pricing leverage in tight analog chip markets. Management expects continued growth across industrial, automotive, and data center segments with trailing 12-month free cash flow reaching $8.4 billion.

Semtech Corporation reported record LoRa sales of $58 million in Q2 fiscal 2027, up 58% year-over-year, with expectations for 65% growth in Q3. The company is expanding its LoRa portfolio with Gen 4 and LoRa Plus offerings, while Amazon Sidewalk's international expansion presents additional growth opportunities. Semtech faces competition from Texas Instruments and NXP Semiconductors in the IoT and industrial markets.

Texas Instruments (TXN) reported Q3 2026 earnings of $2.62 per share, up 77% year-over-year and beating estimates by 9.2%. Revenues surged 28% to $6.06B, driven by strong growth in analog (32%), data center (95%), and industrial (40%+) segments.

Operating margins expanded to 47.5%, and the company raised its dividend by 7% for the 23rd consecutive year. Q4 guidance ranges from $5.80B to $6.30B in revenues.

Meta Platforms, Tesla, IBM, and Texas Instruments all beat Q3 earnings estimates. Meta reported record quarterly revenues of $64.6 billion (up 26% YoY) with EPS of $3.83, announced a 2-for-1 stock split, and raised guidance.

Tesla delivered EPS of $0.48 and revenues of $28.05 billion with improved auto gross margins. IBM and Texas Instruments also exceeded consensus estimates on both earnings and revenues.

Zacks Premium offers Style Scores (Value, Growth, Momentum, and VGM) to help investors identify stocks with the highest likelihood of outperformance. The system works alongside the Zacks Rank to narrow down over 800 top-rated stocks. Texas Instruments is highlighted as a #2 Buy with strong Momentum and VGM scores, up 2.4% in four weeks with positive earnings revisions.

Texas Instruments has a strong track record of beating earnings estimates, with an average surprise of 17.33% over the past two quarters. The company currently has a positive Earnings ESP of +1.81% and a Zacks Rank #2 (Buy) rating, suggesting another earnings beat is likely in its October 21, 2026 report. Stocks with positive Earnings ESP and Zacks Rank #3 or better historically beat consensus estimates nearly 70% of the time.

The article highlights two computer and technology stocks with positive Earnings Surprise Prediction (ESP) metrics that could outperform expectations: Texas Instruments (TXN) with a +1.81% ESP and a #2 Buy rating, and Microchip Technology (MCHP) with a +3.31% ESP and a #3 Hold rating. Both stocks are positioned to potentially deliver positive earnings surprises based on analyst revisions.

Texas Instruments is set to report Q3 2026 earnings on Oct. 21 with revenues expected to grow 24.7% YoY to $5.91B and EPS surging 61.5% to $2.39. Strong demand for analog and embedded chips, particularly from AI data center investments and industrial applications, is driving growth. However, U.S.-China trade tensions pose a headwind, and the stock trades at a premium valuation of 29.38X forward P/E. Analysts recommend a 'Hold' rating despite positive growth prospects.

Texas Instruments stock declined 1.55% to $283.74 on October 9, 2026, underperforming the broader market despite a 11.35% monthly gain. The chipmaker is expected to report earnings on October 21, 2026, with forecasts showing 61.49% EPS growth and 24.66% revenue growth year-over-year. TXN currently holds a Zacks Rank #3 (Hold) rating with a Forward P/E ratio of 34.09, in line with industry averages.

Texas Instruments stock fell 2.78% on October 7, 2026, underperforming the broader market. Despite the daily decline, TXN has gained 14.8% over the past month.

The company is expected to report earnings on October 21, 2026, with consensus estimates projecting EPS of $2.39 (up 61.49% YoY) and revenue of $5.91 billion (up 24.66% YoY). TXN currently holds a Zacks Rank of #3 (Hold) with a Forward P/E of 35.16.

Texas Instruments (TXN) has gained 14.8% over the past month, outperforming the S&P 500. The company is expected to report 61.5% earnings growth for the current quarter and 55.1% for the fiscal year. However, with a Zacks Rank #3 (Hold) rating and a D valuation grade indicating premium pricing relative to peers, the stock is expected to perform in line with the broader market in the near term.

Texas Instruments (TXN) has surged 66.6% over the past year, outperforming peers like Broadcom, QUALCOMM, and NVIDIA. Despite premium valuation (P/E of 30.99), the company's strong Q2'26 results (23% revenue growth, 52% EPS growth), doubling data center revenues, and $7.5-9.5B in government manufacturing incentives support further upside potential. Analysts maintain a Buy rating citing expanding AI infrastructure exposure and robust cash generation.

Zacks.com released analyst research reports on five stocks on October 6, 2026. Texas Instruments and Marvell Technology showed strong outperformance driven by demand in industrial, data center, and AI sectors.

RTX benefited from aerospace recovery and defense demand. Air T showed improvement in aviation services, while GSI Technology faced headwinds in commercialization despite potential in AI processing applications.

Zacks Research Daily features analysis of 16 major stocks and 2 micro-cap stocks. Texas Instruments benefits from broadening demand across industrial and data center markets but faces elevated debt and competition risks.

RTX outperforms aerospace-defense industry driven by commercial aerospace recovery and strong defense demand. Marvell significantly outperforms semiconductors sector on AI-driven data center strength, though customer concentration poses risks.

Air T shows strong performance in air freight with diversified aviation platform. GSI underperforms storage devices industry facing commercialization and procurement challenges. Additional coverage includes Welltower, UBS, Ross Stores, and other companies across various sectors.

Texas Instruments is approaching the conclusion of its six-year elevated capital expenditure cycle for 300mm wafer fabs, positioning the company for significant margin expansion. Q2'26 results showed gross margins rising 350 basis points to 61.4% with revenues up 23% YoY, while the company expects capex to decline from $4.55B in 2025 to $2-3B in 2026. The 300mm production offers 40% lower per-chip costs compared to 200mm wafers, providing structural margin benefits as utilization improves.

Microchip Technology launched new 10BASE-T1S transceivers and endpoints (LAN8679, LAN8680, LAN8660X/1X/2X) targeting automotive, industrial, robotics and aerospace applications. The expanded portfolio reduces wiring complexity and costs by connecting multiple nodes on a single bus.

Industrial and automotive revenues grew 24.3% and 29.3% respectively in Q1 fiscal 2027, with strong order placement and bookings. The company faces competition from Texas Instruments and Analog Devices in the connectivity space.