Texas Instruments announced a significant 2026 free cash flow increase on Tuesday, August 20. The company projects 2026 free cash flow between $8 and $12 per share. This forecast exceeds the Visible Alpha analyst estimate of $6.91 per share. Management attributes the revision to rebounding demand and reduced capital spending.
The update follows pressure from Elliott Investment Management, which revealed a $2.5 billion stake in May. Elliott urged the chipmaker to improve its cash generation capabilities. Texas Instruments will now limit 2026 capital expenditures to between $2 billion and $5 billion. This represents a decrease from the previous annual spending target of approximately $5 billion. Elliott Investment Management described the new targets as a positive step for shareholder value.