Wolfe Research Raises Price Target#
Wolfe Research has increased its price target for Texas Instruments Inc. (NASDAQ: TXN) from $260 to $315 while maintaining an Outperform rating. This adjustment reflects the company's strong financial performance and growth potential.
Strong Financial Performance#
In the first quarter, Texas Instruments reported a revenue increase of 9% compared to the previous quarter, surpassing analyst expectations by 7%. For the upcoming second quarter, the company anticipates an 8% revenue growth, again exceeding consensus estimates. Currently, Texas Instruments shares are trading at $236.31, close to their 52-week high of $238.80, and have seen a remarkable 60% increase over the past year.
Growth Drivers#
The growth of Texas Instruments has been primarily driven by its industrial and datacenter segments. The industrial sector is returning to normal after a strong performance in early 2025, while datacenter revenue, which accounts for 12% of total revenue, nearly doubled year-over-year in the first quarter.
Future Outlook#
Wolfe Research has also revised its revenue and earnings per share estimates for Texas Instruments, projecting $21 billion in revenue and $7.52 earnings per share for 2026, and $23.8 billion in revenue and $9.12 earnings per share for 2027. The firm expects over $10 billion in free cash flow for 2027, assuming stable capital expenditures. Additionally, the upcoming acquisition of SLAB is expected to positively impact earnings and cash flow in 2027.
Analyst Reactions#
Following Texas Instruments' impressive first-quarter results, other analysts have also adjusted their price targets. Evercore ISI raised its target to $316, while Stifel increased its target to $290. Barclays upgraded the stock to Equalweight from Underweight, setting a new target of $250, highlighting the company's strong performance in both the Industrial and Data Center segments.