Texas Instruments reported fourth-quarter earnings per share of $1.27, missing both the Zacks consensus of $1.30 and the prior-year result of $1.30. Revenue of $4.42 billion came in roughly in line with expectations but fell short of Wall Street’s projections. Despite the double miss on earnings and revenue, shares rallied 5% in after-hours trading and extended gains to 7% in pre-market as investors shifted focus to management’s forward outlook.

For the first quarter of 2026, TI guided revenue between $4.32 billion and $4.68 billion, with a midpoint of $4.50 billion—surpassing analysts’ average forecast of $4.42 billion and exceeding the prior quarter’s $4.42 billion. This projection marks the first sequential quarterly revenue increase since 2010. Management attributed the rebound to stronger-than-seasonal analog chip demand in data center power management and industrial end markets, following customer inventory destocking over the past two years.

In 2025, TI’s analog segment delivered 14% year-over-year revenue growth while maintaining gross margins at 57.4% and stabilizing operating margins at 35% in Q3. The recovery in industrial and data center applications has restored pricing power and offset cyclical pressure. Cash generation remains strong; free cash flow exceeded $5 billion in the latest fiscal year, underpinning a 2.8% dividend yield and ongoing share repurchases.

The stock trades at approximately 36 times trailing earnings and 29 times forward earnings, pricing in the anticipated recovery. Analysts maintain an average price target of $195, with 14 rating TI a buy and 17 remaining neutral. Investor focus will be on whether sustained AI infrastructure spending and industrial market momentum validate this inflection-point narrative through the first-quarter results.