Texas Instruments Stock Earnings Reports

Key points for investors: Revenue and segments — TI reported Q1 FY2026 revenue of $4.8B, up 9% sequentially and 19% YoY. Analog grew 22% YoY and Embedded Processing grew 12% YoY; Other declined 16% YoY. By end market: Industrial +30% YoY and +20%+ sequentially, Data Center ~+90% YoY and +25%+ sequentially, Automotive mid-single-digit YoY and roughly flat sequentially, Personal Electronics flat YoY. Acquisition — TI announced an agreement to acquire Silicon Labs to expand embedded wireless connectivity; expected to close in H1 2027 subject to approvals. Profitability & cash flow — Gross profit $2.8B (58% of revenue), operating profit 37% of revenue, net income $1.5B ($1.68/sh), with a $0.05/sh benefit from discrete tax items. Cash flow from operations was $1.5B in the quarter and $7.8B TTM; CapEx $676M in the quarter ($4.1B TTM). Free cash flow TTM was $4.4B (includes $965M of CHIPS Act incentives), and management reiterated that $8 of free cash flow per share for 2026 is highly probable if mid- to high-single-digit revenue growth continues. Capital return — $1.3B dividends and $158M share repurchases in the quarter; $6B returned over the past 12 months. Balance sheet — $5.1B cash & short-term investments; $14B debt (WAC ~4%). Inventory — $4.7B (209 days, down 13 days sequentially); management expects inventories to drift lower during an upturn. Guidance — Q2 revenue $5.0B–$5.4B; EPS $1.77–$2.05; expected effective tax rate ~13%. Capacity & investment — 2026 CapEx reiterated at $2B–$3B, with a rising share of spend into assembly & test (Phase III) to address growth and internalize back-end capacity. Market commentary — Management sees broad-based strength across industrial (multi-industry and geographies) and data center; automotive remaining at an elevated level but with regional differences (China softer in Q1). Pricing — pricing was broadly stable in Q1; management sees potential for price improvement in H2 if demand remains strong but is cautious and will monitor sustainability of demand. Competitive positioning — TI emphasizes manufacturing scale, broad analog portfolio, and the ability to supply as key competitive advantages that are enabling share gains, particularly in data center power and power delivery.