Texas Instruments (TXN) delivered a blowout earnings report that sent shares surging nearly 20% on April 23, marking the company’s best single-day performance in over 25 years. The stock closed at a record high of $282.23, up 19% from the prior close, following a Q1 earnings beat that shattered analyst expectations.
The company reported Q1 2026 earnings per share (EPS) of $1.68, well above the consensus estimate of $1.36. Revenue came in at $4.83 billion, surpassing the $4.52 billion forecast by a wide margin. Industrial segment revenue grew more than 20% quarter-over-quarter, while Data Center revenue surged more than 25% in the same period, highlighting the broadening impact of AI-related demand.
Management’s guidance for Q2 added further momentum. The company guided Q2 revenue between $5.0 billion and $5.4 billion, with a midpoint of $5.2 billion, implying 17% year-over-year growth. EPS guidance for Q2 ranged from $1.77 to $2.05 per share. Both figures topped Wall Street estimates, fueling optimism that the AI buildout is boosting demand for Texas Instruments’ analog chips beyond traditional applications like appliances, motor vehicles, and industrial equipment.
Analyst upgrades followed the report. Barclays upgraded TXN to Equalweight from Underweight, lifting its price target from $175 to $250, citing improved conditions in Industrial and Data Center segments. KeyBanc set the most bullish target at $325, while Rosenblatt raised to $330. Among other analysts, UBS maintained a Buy rating with a target of $295, Cantor Fitzgerald raised to $280, and BofA Securities upgraded TXN to Buy with a $320 target, pointing to strength in aerospace and defense.
TXN shares are now up 60% in 2026. The stock trades at a P/E ratio of 48.33x, well above its historical median, reflecting the growing premium investors are placing on the company’s AI-driven growth narrative. However, some analysts caution about elevated valuations and note that insiders sold $26.5 million in TXN stock over the past three months, with no insider buying reported.
