TI changes ‘went modestly against’ FCF leverage narrative, says Jefferies

Jefferies analyst Blayne Curtis notes that Texas Instruments (TXN) capital management presentation suggested that 2026 capex plans will be at the lower end of the $2B-$3B range, with 2027-plus dependent upon revenue. The other update was that inventory is now expected to remain in the 150- to 250-day range, up from a 130-200-plus target. While there was some expectation that TI would show further free cash flow leverage into 2027, both changes “went modestly against that narrative,” says the analyst, who has a Hold rating and $210 price target on the shares.