Texas Instruments earnings strengthened in the first nine months of 2026, with operating profit rising to $6.99 billion from $4.55 billion a year earlier. Revenue reached $16.34 billion, up from $13.26 billion, in the quarterly filing released on October 23, 2026. Separately, the chipmaker’s planned acquisition of Silicon Labs remains a transaction expected to close in the first half of 2027, rather than a completed expansion.
Key Takeaways
- Nine-month operating profit grew about 54%, outpacing revenue growth of roughly 23%.
- Analog chips account for approximately 79% of revenue, leaving results closely tied to demand for that portfolio.
- The planned Silicon Labs acquisition would expand embedded wireless connectivity offerings, subject to closing conditions.
Table of Contents
- Texas Instruments earnings outpace sales growth
- Analog remains the main driver of the business
- Silicon Labs acquisition targets wireless connectivity
- Conclusion
Texas Instruments earnings outpace sales growth
Revenue increased by $3.08 billion over the first nine months of 2025, while operating profit rose by $2.44 billion. These are cumulative nine-month results, not figures for the third quarter alone.
The faster increase in operating profit means Texas Instruments retained a larger share of sales as operating earnings. Based on the reported figures, its operating margin rose to approximately 42.8% from 34.3% a year earlier. That improvement describes operating profitability, not net income or free cash flow.
| Item | Details |
|---|---|
| Cash consideration | $231 for each Silicon Labs common share at closing. |
| Portfolio addition | Approximately 1,200 wireless-connectivity products. |
| Expected annual synergies | Approximately $450 million in manufacturing and operational synergies within three years after closing. |
| Planned funding | Cash on hand and debt financing; the agreement has no financing contingency. |
Analog remains the main driver of the business
Texas Instruments offers more than 80,000 semiconductor products across markets including industrial equipment, automotive, personal electronics, data centers and communications. Its Analog segment supplies power-management and signal-chain chips and accounts for approximately 79% of revenue.
That mix gives the company exposure to multiple end markets, but its product breadth does not eliminate dependence on analog-chip demand. A slowdown in major customer industries could still affect a substantial portion of sales.
The company has also invested in 300-millimeter wafer fabrication facilities in Texas and Utah. Internally owned production is central to its manufacturing strategy and to its plans for bringing Silicon Labs products into its factory network.
Silicon Labs acquisition targets wireless connectivity
Texas Instruments’ Silicon Labs acquisition agreement, announced on February 4, 2026, values the transaction at approximately $7.5 billion in enterprise value. The proposed combination would add embedded wireless connectivity technology to Texas Instruments’ analog and embedded-processing portfolio.
At announcement, Texas Instruments expected completion in the first half of 2027, subject to regulatory approvals, Silicon Labs stockholder approval and other customary conditions. The anticipated manufacturing benefits and earnings contribution are management expectations, not results already reflected in the nine-month performance.
Texas Instruments expects the transaction to add to earnings per share, excluding transaction-related costs, in the first full year after closing. Its manufacturing plan includes moving Silicon Labs production from external foundries into Texas Instruments’ internally owned capacity.
Conclusion
The nine-month results show operating profit growing faster than sales, while the proposed Silicon Labs purchase represents a separate expansion opportunity. The next transaction milestones to watch are the required approvals and the announced first-half 2027 closing window.
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