Texas Instruments rises after $2.0 billion debt offering

What happened

Texas Instruments (TXN) rose 4.7% on October 26, 2026, after the company priced $2.0 billion of senior unsecured notes. The issuance, reported by GuruFocus and PRNewsWire, comprised four tranches, including $500 million of 5.000% notes due November 9, 2028, and $500 million of 5.350% notes due November 9, 2031. Trading volume was 1.2 times its 20-day average, signaling stronger investor interest during the session.

How big was the move

The stock’s 4.7% rise was 2.4 times a typical daily move for this stock and outperformed the technology sector median by 4.3 percentage points on the day. The S&P 500 rose 0.7% while the sector median rose 0.4%, making the change a large, mostly company-specific move: the company news was the likely driver. Over the last five sessions the stock rose 8.0%, while the S&P 500 over five sessions fell 0.2%.

In the past five years the stock had 19 sessions with a gain of at least 4.7%. Twenty trading days later the median result was a decline of 0.2%, and 9 of 19 were higher.

The technical picture

The stock closed 4.7% above its 20-day moving average and 9.3% above its 50-day moving average, and 15.9% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had spent 145 consecutive trading days above the 200-day average. Its Relative Strength Index (14 days) was 65, in a neutral range between 30 and 70, and the stock remained 10.8% below its 52-week high. Over one month the stock rose 7.2% and over three months it rose 7.6%.

The stock’s 60-day volatility was 31%, higher than 55% of its own readings over five years. With a beta of 1.25, the stock tends to move more than the market.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $20.77 billion, which grew 20.3% from a year earlier, and diluted earnings per share were $7.72, which rose 41.1% from a year earlier. Gross margin stood at 60.2% versus 57.5% a year earlier, and operating margin was 40.8% versus 34.3% a year earlier. Free-cash-flow margin was 35.2% and return on invested capital was 21.5%, while the balance sheet showed net debt of 0.9 times EBITDA. Share count increased by 0.8% over one year.

Valuation measures show the stock at 38.6 times trailing earnings and 33.1 times expected earnings, with a free-cash-flow yield of 2.8%. Its price-to-earnings reading is higher than 86% of its own readings over the past five years, with a five-year median of 27.3 times earnings.

Earnings and analyst expectations

Texas Instruments last reported on October 21, 2026, with earnings per share of $2.62 against $2.44 expected, 7.4% above estimates. That marked three consecutive quarters beating estimates and an average surprise of 9.9% above estimates over the last four reports. The typical two-day reaction after recent reports was that the stock rose 1.4%. The next scheduled report is January 26, 2027.

Analysts place a consensus price target of $333.71, which is 11.9% above the closing price, based on 66 analysts covering the stock. Forty-eight percent of those ratings are Buy or Strong Buy, producing a consensus rating of Buy. PromtFinance scores rank Growth 75 (Positive), Quality 85 (Strong), Momentum 89 (Strong), and Stability 86 (Strong), while Value is 36 (Weak) and Revisions 31 (Weak).

What to watch

• January 26, 2027: next scheduled earnings report.
• The details and use of proceeds from the $2.0 billion senior unsecured notes, including the $500 million of 5.000% notes due November 9, 2028, and $500 million of 5.350% notes due November 9, 2031.
• Changes in trading volume relative to its 20-day average and any follow-through in the five-session direction after the issuance.
• Movements in valuation metrics, 38.6 times trailing earnings and 33.1 times expected earnings.