Texas Instruments Inc. (TXN)

Texas Instruments has the wind at its back from its analysts and its trend. Its October 21, 2026 report beat the EPS estimate by 7.82%, yet the stock fell 1.81% in the next session, and the price has since moved back up to $300.52, 10.03% below its 52-week high of $334.03. The stock is still up 2.45% above the past year and trades above its 20-day EMA, 50-day SMA and 200-day SMA. The question for investors is whether the stock can keep rising while its valuation already sits above the sector median, and whether the strong earnings growth expected for this year and next continues to support that valuation.

Texas Instruments reported EPS of $2.62 on October 21, 2026, against an analysts' estimate of $2.43, a beat of 7.82%. The stock fell 1.81% in the first session after the report. This is the pattern that matters most for the stock's near-term direction. Of the seven recent reports, six beat the EPS estimate, and four of those six beats were followed by a lower share price in the first session. The reports have been strong, but the market has not always rewarded them immediately.

The price of $300.52 is above both the 50-day SMA of $280.59 and the 200-day SMA of $263.30, by 7.10% and 14.13%. The 50-day SMA is also 14.13% above the 200-day SMA, which means the medium-term average itself is rising. Over the past year the stock is up 87.15%, while the six-month return is only 1.81%, so much of the gain came earlier and the stock has moved sideways since.

The trailing P/E of 36.56 is 4.2% above the sector median of 35.1, so it is broadly in line with peers on earnings. The reported earnings per share over the last 12 months is $8.22. The business quality is high: the net profit margin is 34.1%, the operating margin 47.55%, and the return on equity 39.72% against a sector median of 13.4%.

Insiders sold $123.8M of stock over the last 18 months, through 33 sales, and made no open-market purchases. Insider sales are often planned in advance or made to cover tax on vesting shares, so they are a weaker signal than open-market buying. The debt-to-equity ratio of 0.71 and a dividend yield of 1.92%, with an annual dividend of $5.78, show a company that is profitable and returns cash to shareholders.

The base case is that the trend holds while earnings keep growing. Analysts expect EPS to rise 66.2% this fiscal year to $9.06 and 27.9% next year to $11.58, and revenue to grow 26.7% this year. If those estimates are met, the trailing P/E of 36.56 should ease over time even if the price keeps rising. The median 12-month analyst target is $340.00, 13.1% above the price, with a range from $250.00 to $400.00. The main risk to that case is a further sell-off after a beat, as happened after the October 21, 2026 report, or a weak reaction to the next results. A close below the 20-day EMA at $293.32 would weaken the short-term trend, while a move back toward the 52-week high of $334.03 would test whether buyers can push the stock to a new peak. The stock's beta of 1.39 means it can move more than the market in either direction.

Support sits first at the 20-day EMA of $293.32, the nearest level below the price, which a fall would meet first. Next is the 50-day SMA at $280.59, followed by the 200-day SMA at $263.30. The 52-week low of $152.73 is far below and marks the bottom of the stock's one-year range.