Texas Instruments (NASDAQ: TXN) is poised to break out of a long-term trading range and begin a significant rally following its Q4 2025 earnings release. Analyst sentiment has shifted positively, with price targets rising and upgrades from BNP Paribas, Susquehanna, and Stifel Nicolaus. The consensus Hold rating is firm, with potential for further target revisions.

Analysts are cautiously optimistic about Texas Instruments’ Q4 results and guidance. Revenue increased by over 10% in the quarter, with growth in key segments offsetting declines elsewhere. Margins remained strong, with the company’s reorganization showing growth across all end markets. Overall, analysts are more constructive due to strong future guidance and market reaction.

Texas Instruments’ capital return is attractive, with a 2.75% dividend yield and ongoing share buybacks. The company’s commitment to shareholder returns, robust earnings, and free cash flow outlook are driving investor value. Post-release price action has been bullish, with substantial gains expected in the coming quarters. Technical indicators support a sustained rally.

The market’s positive reaction to Texas Instruments’ guidance update reflects strong future prospects. Q1 revenue and earnings guidance exceeded consensus, pointing to momentum in key markets. The company’s focus on AI infrastructure positions it well for growth, particularly in the Data Center segment. Analysts see potential for outperformance and increased price targets.

Read more at Nasdaq: Why Texas Instruments’ 2026 Outlook Has Wall Street Re-Rating It