Trends
Analog chipmaker TI expects free cash flow to jump in 2026
OUR TAKE Texas Instruments investor Elliott disclosed its $2.5 billion stake in May, forcing Texas Instruments to tighten spending and adjust production capacity in response to changes in demand. The company has said this strategy could boost TI’s FCF to $9 per share by 2026. And that’s mainly becau…
Headline
OUR TAKE Texas Instruments investor Elliott disclosed its $2.5 billion stake in May, forcing Texas Instruments to tighten spending and adjust production capacity in response to changes in demand. The company has said this strategy could boost TI’s FCF to $9 per share by 2026.…
Context
OUR TAKE Texas Instruments investor Elliott disclosed its $2.5 billion stake in May, forcing Texas Instruments to tighten spending and adjust production capacity in response to changes in demand. The company has said this strategy could boost TI’s FCF to $9 per share by 2026. And that’s mainly because of demand-driven stimulus. –Zora Lin, BTW reporter Texas Instruments (TI) said on Tuesday its free cash flow (FCF) would jump in 2026 as demand rebounds and the analog chipmaker reigns in capital spending under pressure from activist investor Elliott Investment Management .
Evidence
Pending intelligence enrichment.
Analysis
According to the forecasts of eight analysts surveyed by Visible Alpha, the company expects 2026 cash flow per share to be between $8 and $12, higher than the $6.91 forecast. The company has embarked on an aggressive plan to increase domestic production by building three new chip factories. There have also been signs of rising demand in recent months after a prolonged slump. Texas Instruments will maintain $5 billion in capital expenditures through 2025. According to LSEG, the company’s 2023 free cash flow per share fell 77% to $1.47. The company expects 2026 revenue to be between $20 billion and $26 billion. Also read: SoftBank ends AI-chip plan with Intel
Key Points
- Texas Instruments (TI) said on Tuesday its free cash flow (FCF) would jump in 2026 on a rebound in demand.
- Texas Instruments expects 2026 cash flow per share to be in the range of $8 to $12, above its forecast of $6.91.
Actions
Pending intelligence enrichment.
