Texas Instruments (TXN) Stock Surges 16% After Blowout Q1 Earnings

TLDR

• Texas Instruments beat Q1 2026 earnings estimates with EPS of $1.68 vs. the expected $1.36
• Revenue came in at $4.83 billion, topping the $4.52 billion forecast
• Industrial segment grew more than 20% quarter-over-quarter; Data Center grew more than 25%
• Barclays upgraded TXN to Equalweight, raising its price target from $175 to $250
• Multiple analysts raised price targets, with KeyBanc setting the highest at $325 and Rosenblatt at $330

Texas Instruments posted a strong first quarter in 2026, clearing analyst expectations on both earnings and revenue. EPS came in at $1.68, well above the $1.36 consensus. Revenue hit $4.83 billion versus the $4.52 billion forecast.

The stock jumped roughly 16% on the news, moving from around $233 to trade near $274.

Texas Instruments Incorporated, TXN

The results were driven by strength in two key areas: Industrial and Data Center. Industrial grew more than 20% quarter-over-quarter in March. Data Center grew more than 25% over the same period.

Guidance for Q2 came in slightly above seasonal trends, pointing to continued demand in those two segments. Automotive demand remained choppy, according to UBS.

Analyst Upgrades and Price Target Hikes

Barclays made the most notable move, upgrading TXN from Underweight to Equalweight and lifting its price target from $175 to $250. The firm said improved conditions in Industrial and Data Center drove the change.

Barclays expects Data Center to grow more than 90% for full-year 2026. It also expects Industrial to beat seasonal trends again in June.

The firm now models $10 per share in free cash flow for TXN in calendar year 2027. That compares to a current consensus estimate of around $8.55.

UBS kept its Buy rating and raised its target from $260 to $295. The firm said results landed in line with elevated expectations, with guidance offering a small beat.

Cantor Fitzgerald raised its target from $250 to $280 while staying Neutral. The firm applied a higher 28x multiple versus the previous 25x, reflecting improving trends in analog semiconductors.

Other Analysts Weigh In

KeyBanc set the most bullish target, lifting it to $325. BofA Securities upgraded TXN to Buy with a $320 target, citing strength in aerospace and defense within the industrial sector.

Rosenblatt raised its target to $330. Baird moved to $300. Wolfe Research, which noted Q1 revenue was up 9% quarter-over-quarter, set a target of $315.

TXN currently trades at around 26 times free cash flow, above its historical mid-teens multiple. Its P/E sits at 43.15.

Barclays flagged that the stock still has execution work ahead on Street numbers in the second half. Cantor Fitzgerald also flagged uncertainty around memory constraints and geopolitical dynamics as reasons to stay selective on the broader semiconductor group.

The stock was trading near $274, not far below its 52-week high of $238.80 set before the earnings pop.

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