(Reuters) - Texas Instruments said on Tuesday its free cash flow (FCF) would jump in 2026 as demand rebounds and the analog chipmaker tightens capital spending after pressure from activist investor Elliott Investment Management.
It expects FCF per share to be between $8 and $12 in 2026, higher than an estimate of $6.91, according to eight analysts polled by Visible Alpha.
Elliott, which in May disclosed a $2.5 billion stake, had pushed the chipmaker to tighten spending and adjust its production capacity to the changes in demand. It had said the strategy could improve TI's FCF to $9 per share by 2026.
The company has embarked on an aggressive plan to bring more production in-house with the construction of three new chip facilities. It has also seen signs of an uptick in demand in recent months after a prolonged slump.
TI said it expects capital expenditure in 2026 to be between $2 billion and $5 billion, compared with its initial plans to spend about $5 billion a year through 2026 to expand manufacturing.
The company will maintain a capital expenditure of $5 billion through 2025. Its free cash flow per share fell 77% to $1.47 in 2023, according to LSEG data.
It expects revenue to be between $20 billion to $26 billion in 2026.