Texas Instruments filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $20.77 billion, which rose 20.3% on the year before. That growth rate was up 3.6 percentage points on the rate a quarter earlier.

What stands out

Net income rose 41.0% over the year while free cash flow rose 251.8%. Reported profit and cash are moving at different speeds.

Growth and profit

The trailing gross margin was 60.2%. The trailing operating margin was 40.8%, up 6.4 percentage points from a year earlier. The trailing net margin was 34.3%. Net income over the twelve months was $7.11 billion, which rose 41.0% on the year before.

Cash flow

Operating cash flow over the twelve months was $9.90 billion, up 43.5% on the year before. Capital spending was $2.58 billion, or 12.4% of revenue. Free cash flow, operating cash flow less capital spending, was $7.32 billion, up 251.8% on the year before. Free cash flow was 35.2% of revenue (the free-cash-flow margin), up 23.2 percentage points from a year earlier. The average diluted share count rose 0.1% over the year.

In context

Today’s free-cash-flow margin of 35.2% is higher than 80% of the company’s own past quarterly readings, which have ranged from 5.6% to 41.7%. Today’s operating margin of 40.8% is higher than 74% of the company’s own past quarterly readings, which have ranged from 11.0% to 51.8%. Today’s twelve-month revenue growth rate of 20.3% is higher than 88% of the company’s own past quarterly readings, which have ranged from −14.5% to 35.6%.

Guidance

The company gave its fourth quarter guidance for revenue: $5.8 billion to $6.3 billion. The company gave its fourth quarter guidance for earnings per share: $2.45 to $2.79.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 24.2%, and 5 percentage points higher would raise it by 30.9%. A free-cash-flow margin 1 percentage point lower would lower it by 2.9%.

What to watch

The next filing will show whether the acceleration in revenue growth continues or stabilizes. It will reveal if the expansion in operating margins persists or reverses. It will indicate if the surge in free cash flow generation remains consistent.