Cantor Fitzgerald raised its price target on Texas Instruments (NASDAQ:TXN) to $225.00 from $190.00 on Wednesday, while keeping a Neutral rating on the stock. The updated target implies upside relative to a reference share price of $196.63, although InvestingPro data notes the shares are trading at a price-to-earnings ratio of 35.95, signaling a premium valuation.
The firm highlighted what it called "surprisingly positive" quarterly results, including the company's first guided sequential growth for the first quarter since 2010. Cantor Fitzgerald pointed to stronger-than-expected gross margin trends as an additional supporting factor, following a recent trailing-twelve-month gross profit margin of 57%.
Management commentary underpins Cantor Fitzgerald’s view that a recovery is underway, driven by expanding orders and a growing backlog. The research note singled out strength in the data center market and a broadly based industrial recovery as notable contributors to the company's performance.
InvestingPro classifies Texas Instruments as a significant Semiconductors industry participant and reports 13.05% revenue growth over the past twelve months. Analysts tracked by InvestingPro anticipate that momentum to carry into fiscal 2026, with a forecast of 13% revenue growth for that year.
Cantor Fitzgerald’s valuation framework assumes Texas Instruments can generate roughly $9-10 of free cash flow per share in calendar year 2027, and the firm applies a 25x multiple to that expectation to support the raised price target. Management also signaled that pricing could decline in the low single digits percentage in 2026.
The company’s financial position was described as strong, reflected in a "GOOD" overall financial health score and a current ratio of 4.35, indicating comfortable near-term liquidity.
Texas Instruments is scheduled to present its Capital Management Presentation on February 24. Cantor Fitzgerald expects that event to sharpen investor focus on the company’s free cash flow potential.
Investors may also note the company’s long-running dividend record. InvestingPro data shows Texas Instruments has raised dividends for 22 consecutive years and maintained dividend payments for 56 years.
Recent quarter and analyst reactions
In its fourth-quarter 2025 results, Texas Instruments recorded an earnings per share of $1.27, slightly missing the $1.29 analysts had forecast. Revenue for the quarter came in at $4.42 billion, short of the $4.45 billion consensus estimate.
Following the results and accompanying outlook, several brokerages adjusted their price targets for the stock. Benchmark increased its target to $250, citing strong guidance for the upcoming quarter. Baird lifted its target to $225, calling the company’s first-quarter outlook a positive surprise. UBS raised its target to $260, pointing to improving revenue trends and constructive commentary on bookings and backlog. Mizuho raised its target to $160 but retained an Underperform rating, noting December quarter revenue of $4.4 billion that it characterized as in line with consensus.
These differing revisions reflect a broad spectrum of analyst expectations about the company’s near-term performance and the durability of improving revenue and margin trends.
What this means for market participants
Cantor Fitzgerald’s higher price target rests on a combination of better-than-expected recent results, stronger margins, management guidance suggesting sequential growth, and the firm’s projection of robust free cash flow by 2027. At the same time, the stock’s elevated P/E multiple and mixed analyst reactions underscore that market participants remain divided on how to price the company amid evolving demand dynamics across data center and industrial end markets.
Investors will likely watch the February 24 Capital Management Presentation closely for further clarity on cash generation and capital allocation plans.