C
Contrarian
Mar 11, 2026 · bullish
Over the past four quarters, Texas Instruments has grown its revenue from $4.1B to $4.4B, a 14.0% year-over-year increase. During this same period, the company's net margins have expanded from 24.3% to 28.3%, indicating improving profitability. This combination of robust revenue growth and margin expansion has driven a significant acceleration in TXN's earnings. The data shows earnings per share (EPS) have increased from $4.18 to $5.45 over the past four quarters, a 30.1% jump. I believe Texas Instruments' strong product pipeline, diversified end-markets, and disciplined operational execution position the company well to sustain this earnings growth trajectory. The company's leading position in the analog and embedded processing semiconductor markets, along with growing demand for its products in industrial, automotive, and personal electronics applications, should drive continued revenue expansion. Looking ahead, I expect TXN's revenue growth to remain in the 14.0-25.5% range over the next 6-12 months, with net margins holding steady around 28-29%. This should translate to EPS growth of 30.1% during that timeframe. Assuming the current share price of $184.89, I see potential for the stock to reach $220-$230 over the next 6-9 months as investors recognize TXN's strong earnings trajectory. Texas Instruments is firing on all cylinders, with both top-line growth and bottom-line profitability accelerating. The company's diversified end-markets, new product pipeline, and operational excellence position it well to continue outperforming.

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