Texas Instruments Incorporated Q2 2026 Earnings Recap

Texas Instruments shares fell 2.2% after reporting second-quarter results as market enthusiasm was tempered by a cautious outlook despite solid top-line growth and margin improvement.

Key Takeaways

• Q2 revenue grew 23% year-over-year to $5.5 billion, driven by strong gains in Analog (+26% YoY) and Embedded Processing (+16% YoY).
• End markets showed broad strength: industrial revenue up ~30% YoY, automotive mid-teens YoY growth with signs of acceleration, and data center doubling YoY.
• Gross margin improved significantly, rising 340 basis points sequentially to 61%, contributing to operating profit margin of 42%.
• Free cash flow remains robust at $6.5 billion on a trailing 12-month basis, supported by $1.6 billion in CHIPS Act incentives.
• Management provided guidance for Q3 revenue between $5.65 billion and $6.15 billion with EPS of $2.23 to $2.57, indicating confidence but also signaling moderation relative to the strong Q2 growth phase.