Stifel has reaffirmed its Hold rating on Texas Instruments (NASDAQ: TXN) as the company approaches its forthcoming earnings announcement. The investment firm maintains a price target of $200, reflecting a balanced stance amid signs of market recovery and ongoing challenges.
According to Stifel's projections, Texas Instruments is expected to report revenues roughly in line with current forecasts. The firm anticipates a top-line figure close to its estimate of $4.40 billion for the quarter, which marks a 7.3% decline from the previous quarter, with non-GAAP earnings per share predicted around $1.27. There is a possibility for marginal outperformance relative to these figures.
Regarding guidance for the March quarter, Stifel foresees revenue estimates exhibiting a slightly positive bias relative to its own forecast of $4.31 billion—a 2% decrease quarter-over-quarter—as well as the broader market consensus of $4.42 billion. Non-GAAP EPS expectations stand at $1.20, somewhat below the Street consensus forecast of $1.29.
The $200 price target corresponds to a projected 35.3 times price-to-earnings multiple on calendar year 2026 estimates, suggesting confidence in the company’s secular growth drivers, particularly within the data center segment, which runs at an annualized rate of $1.2 billion. However, this outlook also factors in near-term margin pressures stemming from tactical under-utilization of production capacity.
Stifel maintains a conservative stance due to uncertain macroeconomic conditions projected for the first half of 2026 as well as unresolved trade tariff issues. These elements temper enthusiasm despite emerging indications that the analog semiconductor market is showing signs of stabilization and improvement.
In corporate developments, Texas Instruments has announced a quarterly cash dividend of $1.42 per share, payable on February 10, 2026, to shareholders of record as of January 30, 2026. This move underscores the company’s commitment to returning value to shareholders amidst cyclic market trends.
Further contributing to its product pipeline, Texas Instruments recently introduced automotive semiconductor products oriented toward advancing vehicle safety and autonomy. The TDA5 system-on-chip family supports up to Level 3 autonomous driving and emphasizes power efficiency, reflecting the company’s strategic focus on the automotive sector’s growth potential.
On the legal front, Texas Instruments joins peers Intel and AMD in facing lawsuits alleging that their technologies were utilized in Russian weaponry, contravening U.S. sanctions. Plaintiffs claim these companies inadequately prevented restricted chips from being resold to Russia, where such technology was reportedly deployed in weapons impacting Ukrainian civilians. These proceedings add a layer of regulatory and reputational risk.
Stifel's maintained Hold rating and updated price target reflect a cautious optimism grounded in cyclic recovery potential within diverse end markets, balanced against macroeconomic and geopolitical uncertainties. Investors and industry watchers will likely monitor upcoming earnings closely for clues on the company’s trajectory amid this complex operating landscape.