Highlights

  • Texas Instruments priced USD 2bn of senior unsecured notes on 26 October to help fund its planned Silicon Laboratories acquisition.
  • Third-quarter revenue increased 28% YoY and 11% QoQ, with industrial, automotive and data-centre demand contributing to the growth.
  • The board declared a higher quarterly dividend in October after management announced the twenty-third consecutive annual increase in September.
  • Management expects fourth-quarter revenue between USD 5.8bn and USD 6.3bn, with earnings guidance reflecting another period of operating activity.

Acquisition financing has joined the capital allocation programme at Texas Instruments Incorporated (NASDAQ:TXN), which designs and manufactures analog and embedded processing chips. The company priced new notes on 26 October after reporting broad revenue growth and declaring a higher dividend. Shares closed at USD 298.12, up 4.72%, after the market session ended on 26 October 2026. The latest developments combine funding for a planned transaction with ongoing investment, shareholder returns and guidance for the next operating quarter.

New Notes Are Priced for Planned Acquisition Spending

Texas Instruments priced four series of senior unsecured notes totalling USD 2bn. Each series has USD 500mn of principal, with maturities in November 2028, 2031, 2033 and 2036.

The respective coupon rates are 5.000%, 5.350%, 5.500% and 5.750%. Issuance is expected on 9 November. Pricing the notes establishes the announced financing terms; it is distinct from their expected issuance date and the completion of the acquisition they are intended to support.

The company expects to use the proceeds to finance part of the purchase price for Silicon Laboratories and associated fees and expenses. The release identifies an acquisition-related funding purpose, without describing the note proceeds as cash already received at the announcement date.

Broad Demand Supports Higher Quarterly Revenue

Revenue reached USD 6.06bn in 3QFY26, increasing 28% YoY and 11% QoQ. Net income was USD 2.43bn and earnings reached USD 2.62 per share, including a one-cent reduction outside the original guidance.

Management described continued growth across industrial, automotive and data-centre applications. Over the trailing twelve months, operating cash flow was USD 9.9bn and free cash flow was USD 8.4bn. The company's free-cash-flow definition deducts capital expenditure and adds proceeds from US CHIPS Act incentives.

During that twelve-month period, Texas Instruments invested USD 2.6bn in capital expenditure and USD 4bn in research, development, selling, general and administrative activities. These measures show the ongoing operating and manufacturing investment alongside its acquisition financing programme.

Dividend and Outlook Define Near-Term Commitments

The board declared a quarterly cash dividend of USD 1.52 per share on 15 October. This followed September's announcement of a 7% increase from USD 1.42 per share, marking twenty-three consecutive years of dividend increases.

Texas Instruments' stated long-term objective is to return all free cash flow to shareholders over time through its capital allocation programme. The dividend increase sits within that policy rather than establishing a fixed distribution of each quarter's cash generation.

For 4QFY26, management expects revenue of USD 5.8bn–6.3bn and earnings of USD 2.45–2.79 per share. Its portfolio serves a broad range of electronics applications, with analog and embedded processing products used across industrial equipment, vehicles, data centres, personal electronics and communications equipment.

The immediate milestones are execution against that operating outlook and the expected note issuance. Acquisition-related borrowing and recurring shareholder distributions remain separate capital decisions, even as both form part of the wider financial programme.