Texas Instruments Incorporated
TXN.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q2
Texas Instruments topped the high end of its guidance, delivering Q2 revenue of $5.46 billion (+23% YoY) and EPS of $2.14 (+52% YoY) while moving from signaling to active implementation of price increases. Inventory days fell 13 sequentially to 196 and factory loadings rose as demand surged, with automotive growth accelerating to mid‑teens YoY and a Q3 revenue midpoint set at $5.9 billion, an 8% sequential increase. The results reflect a broad market recovery across Industrial, Data Center and Automotive segments.
Revenue (YoY)
$5.46B
+22.8%
EPS (Diluted, YoY)
$2.14
+51.8%
Q3 Revenue Guidance (Midpoint)
$5.90B
+8.0% seq.
Operating Margin
42.3%
+720 bps YoY
Data Center Revenue Growth (YoY)
Doubled
+100%
What We're Watching
Risk
Personal Electronics (PE) Headwinds
📅
Next Quarter
What to Monitor
Commentary on whether external component shortages are still impacting their customers' ability to build products. Monitor if the segment's growth in Q3 is indeed "at a lower level" than typical seasonality, as cautioned by management.
Why It Matters
This is the most specific headwind management identified in an otherwise strong outlook. A material slowdown in this segment could temper overall growth during a seasonally important quarter and signal broader supply chain issues.
Opportunity
Financial Impact of Price Increases
📅
H2 2026 / FY 2027
What to Monitor
Any quantification of the contribution from pricing to gross margin and revenue growth in Q3 results and the Q4 outlook. While the Q3 impact was guided as "almost insignificant," the effect should become more visible over time.
Why It Matters
This is a new and material lever for margin expansion that goes beyond simple volume leverage. Successful execution and customer acceptance would provide a significant tailwind to profitability and validate the strength of TI's market position.
Operational
Industrial Segment Trajectory vs. 2022 Peak
📅
Next 1-2 Quarters
What to Monitor
Whether the segment's revenue can surpass its prior peak from 2022. Management noted it is still "5 or 6 points lower" than that level, framing it as room to grow.
Why It Matters
Exceeding the prior peak would validate the long-term secular growth thesis, proving that years of underlying content gains can drive the market to new highs and suggesting the current upcycle has significant runway.
Operational
Sustainability of Automotive Re-acceleration
📅
Next Quarter
What to Monitor
Whether the segment maintains strong sequential and year-over-year growth, or if the Q2 surge proves to be primarily a short-term inventory replenishment cycle from "not sustainable" low levels.
Why It Matters
The Automotive segment's inflection was a key catalyst confirming the recovery's breadth. Sustained momentum is critical to underpinning the "very, very broad" cycle narrative and provides a powerful second engine of growth alongside Industrial.
Strategic
CapEx Cadence and Factory Loadings
📅
H2 2026
What to Monitor
Whether full-year CapEx trends toward the "higher end of that midpoint" of the $2B–$3B range, as hinted by the CFO. Monitor commentary on factory utilization levels and any emerging internal supply constraints.
Why It Matters
In a strong upcycle, the ability to supply becomes a key competitive advantage. An accelerated CapEx cadence would signal high confidence in sustained long-term demand, while any inability to meet demand could limit upside and cede market share.
