Texas Instruments Lifts Dividend 7% on 23% Revenue Growth
Texas Instruments raised its quarterly dividend to $1.52, citing Q2 revenue growth of 23% and strong data center demand.
Key points
- Texas Instruments raised its quarterly dividend by 7% to $1.52, extending a 23-year streak of annual increases.
- Q2 2026 revenue hit $5.5 billion, up 23% year-over-year, with data center income doubling and industrial sales rising 30%.
- Consensus forecasts Q3 2026 EPS at $2.39, a 61.5% increase, driven by strong demand in AI and industrial sectors.
Texas Instruments increased its quarterly dividend by 7 percent to $1.52 per share, marking the 23rd consecutive year of payout increases. The move followed a second-quarter revenue report of $5.5 billion, which represented a 23 percent year-over-year expansion driven by surging demand in data centers and industrial sectors.
The annual dividend rate now stands at $6.08 per share, with the new quarterly amount scheduled for payment in November 2026. This capital return strategy coincides with significant capacity investments in analog and embedded processing chips, reflecting the company's confidence in sustained demand across its core end markets.
Revenue growth accelerates in key segments
The second quarter of 2026 saw total revenue reach $5.5 billion, up 23 percent from the same period last year. Data center revenue doubled, while industrial segment revenue grew by approximately 30 percent. These figures indicate a broad-based recovery in analog chip demand, particularly within automotive and industrial applications.
Forward-looking consensus estimates project third-quarter 2026 revenue of $5.91 billion, a 24.7 percent increase year-over-year. Expected earnings per share are forecast at $2.39, implying a 61.5 percent surge in profitability compared to the prior year. This trajectory suggests that the company is effectively converting top-line growth into substantial bottom-line gains.
Analysts highlight data center expansion
UBS designated Texas Instruments as its top pick among analog semiconductor firms, citing a price target of $380 per share. This valuation implies roughly 43 percent upside from recent trading levels. The bank anticipates total revenue growth of around 20 percent next year, driven by recovering analog demand and the ongoing build-out of artificial intelligence infrastructure.
Index inclusion boosts market visibility
Texas Instruments was added as a constituent to the NYSE American 50 index, effective September 21, 2026. This inclusion follows the company’s release of second-quarter guidance that exceeded market expectations, signaling improving demand trends. The stock closed at $266.64 on Nasdaq on September 18, 2026, rising 3.3 percent as investors reacted to the dividend hike and strong operational performance.
