Texas Instruments Incorporated (TXN) Earnings
Texas Instruments Incorporated is expected to report next earnings on October 27, 2026 (in NaN days), with a consensus EPS estimate of $2.36. TXN has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +8.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 22, 2026 | $1.90 | $2.14 | +12.5% | $5.5B | +4.0% |
| Apr 22, 2026 | $1.36 | $1.68 | +23.5% | $4.8B | +6.6% |
| Jan 27, 2026 | $1.29 | $1.27 | -1.6% | $4.4B | -0.3% |
| Oct 21, 2025 | $1.49 | $1.48 | -0.7% | $4.7B | +2.1% |
| Jul 22, 2025 | $1.36 | $1.41 | +3.7% | $4.4B | +1.9% |
| Apr 23, 2025 | $1.07 | $1.28 | +19.6% | $4.1B | +4.1% |
| Jan 23, 2025 | $1.20 | $1.30 | +8.3% | $4.0B | +3.2% |
| Oct 22, 2024 | $1.38 | $1.47 | +6.5% | $4.2B | +0.8% |
| Jul 23, 2024 | $1.17 | $1.22 | +4.3% | $3.8B | +0.0% |
| Jan 23, 2024 | $1.47 | $1.49 | +1.4% | $4.1B | -1.0% |
| Jul 25, 2023 | $1.76 | $1.87 | +6.3% | $4.5B | +3.7% |
| Jan 24, 2023 | $1.98 | $2.13 | +7.6% | $4.7B | +1.2% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 22, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Q2 2026 financial performance: - Gross profit was $3.4 billion (61% margin), up 340 basis points sequentially; operating profit was $2.3 billion (42% margin), up 48% year-over-year; net income was $2 billion ($2.14 per share), including a $0.05 per share discrete tax benefit - 12-month trailing free cash flow was $6.5 billion, up sharply from $1.8 billion in Q2 2025, including $1.6 billion in CHIPS Act incentives; Q2 2026 operating cash flow was $2.7 billion - Capital expenditures were $514 million in Q2 2026, $3.3 billion over the trailing 12 months; total dividends paid in Q2 were $1.3 billion, with $5.8 billion returned to shareholders over the trailing 12 months - End-of-quarter inventory was $4.6 billion, down $90 million sequentially with 196 days of inventory (down 13 days); balance sheet has $7 billion in cash/short-term investments and $14 billion in total debt with a 4% weighted average coupon Operational and strategic highlights: - Q2 revenue exceeded the guided range, driven by broad demand strength across industrial, data center, and accelerating automotive demand; pre-built inventory and available clean room capacity allow TI to meet growing customer demand - Demand inflection in automotive is led by China-based EV and hybrid demand, driven by fuel costs, plus restocking after customer inventory levels fell to unsustainable lows - TI maintains a long-term focus on strengthening core competitive advantages: manufacturing/technology, broad product portfolio, channel reach, and diverse long-lived market positions, supported by disciplined capital allocation - The company completed preparation of underutilized clean room space and existing fab shells, leaving TI uniquely positioned to scale capacity quickly in response to growing demand across high-growth end markets - CFO transition: Rafael Lizardi will retire at the end of August 2026; Julie Knecht will assume the CFO role on August 1, 2026
Guidance
- Third quarter 2026 revenue is guided to a range of $5.65 billion to $6.15 billion, with earnings per share expected between $2.23 and $2.57; the effective tax rate is projected to be ~13% - Full-year 2026 capital expenditures remain guided to a $2 billion to $3 billion range, with management noting there is now upside to the midpoint of the range to support growing customer demand - The prior long-term free cash flow framework (8-9 billion yen at $20 billion revenue, 9-10 billion yen at $22 billion revenue) remains valid for modeling - Management expects broad demand strength across all end markets to continue into Q3 2026, with automotive growth continuing after its Q2 inflection
Segment performance
Overall company Q2 2026 revenue was $5.5 billion, up 13% sequentially and 23% year-over-year. 1. Analog segment: Revenue grew 26% year-over-year, contributing the majority of total revenue growth. 2. Embedded Processing segment: Revenue grew 16% year-over-year, with sequential growth as well. 3. Other segment: Revenue declined 2% year-over-year. By end market: Industrial was up ~30% year-over-year and ~10% sequentially, with broad growth across regions and sectors; Automotive grew mid-teens year-over-year and upper single digits sequentially; Data Center doubled year-over-year and grew ~20% sequentially; Personal Electronics was flat year-over-year and grew upper single digits sequentially; Communications Equipment grew both year-over-year and sequentially.
Risks & headwinds
No explicit new material risks were discussed on the call. Management noted in the standard forward-looking disclaimer that actual results could differ materially from current expectations due to existing risks disclosed in prior SEC filings and earnings releases. Implicit operational risks include input cost inflation that required targeted price increases, and potential supply chain constraints for competitors that create both opportunities and near-term lead time pressure for TI.
Analyst Q&A
Q: Given stronger-than-expected Q2 demand and accelerating automotive growth, will this strength continue into H2 2026, and what is driving the automotive inflection? /
A: Management confirms current demand is stronger and broader than prior periods, with growth expanding beyond the previously strong industrial and data center markets to automotive. Above-seasonal Q3 growth will come from all markets, with automotive growth led by China-based EV and hybrid demand, pushed by fuel costs, plus restocking after customers depleted inventory to unsustainable levels. Management expects this broad growth cycle to continue. /
Q: With rising input costs and strong unanticipated demand, are you implementing planned second half price increases, when will they take effect, and do they cover both analog and embedded segments? /
A: Pricing held flat in the first half of 2026, which is an abnormal outcome vs. the typical 2% annual price decline. Price increases have started execution, and are implemented customer-by-customer rather than through one-time channel changes. Some increases will impact Q3 results, with others rolling out through Q4 and into early 2027 during annual pricing discussions. Increases are concentrated in segments and products facing the greatest lead time pressure, particularly automotive. /
Q: Where are current factory loadings, how fast will you increase loadings coming quarters, and will inventory stabilize or continue falling? /
A: Factory loadings increased from Q1 to Q2, and continued rising throughout Q2. TI has available pre-built clean room space that can be equipped and ramped quickly to support a wide range of demand scenarios. Inventory fell slightly in Q2, and management will adjust levels to support ongoing growth while maintaining healthy inventory buffers to meet customer demand. /
Q: What is TI's long-term growth outlook for the data center market, especially with the 800V transition, and how does the 800V shift impact your opportunity? /
A: Strong data center demand is expected to continue for the foreseeable future. The 800V architecture transition will expand the total addressable market for TI's analog and embedded products, as it adds additional power conversion stages that all require TI chips. Even with longer-term direct conversion changes, higher voltage architectures create more opportunity for TI. TI's goal is to outgrow the overall data center analog/embedded market, leveraging its dependable geopolitical supply capacity and broad product portfolio. Management expects data center gross margins to stay around the corporate average as the business scales.