TLDR
- TXN beat Q2 EPS estimates by 8.85%, reporting $2.14/share vs. $1.94 expected
- Revenue hit a record $5.46 billion, up 23% year over year
- Stock fell ~5% in premarket Thursday despite the beat
- Q3 guidance came in above consensus on both EPS and revenue
- Data center sales doubled year over year; automotive demand accelerated
Texas Instruments stock was down about 5% in premarket trading Thursday after the company posted record quarterly revenue and beat Wall Street estimates on both profit and revenue.
Texas Instruments Incorporated, TXN
The stock closed Wednesday’s regular session at $294.19 before dropping to $285.20 in after-hours trading — a fall of roughly $9, or 3.06%.
TXN reported Q2 adjusted EPS of $2.09, beating the $1.92 consensus by $0.17. Including a $0.05 tax benefit, GAAP EPS came in at $2.14.
TEXAS INSTRUMENTS $TXN Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $5.46B (Est. $5.24B) 🟢; +23% YoY, +13% QoQ
🔹 EPS: $2.14 (Est. $1.95) 🟢; +52% YoY
🔸 EPS includes a 5-cent benefit not in original guidanceQ3 Guide:
🔹 Revenue: $5.65B-$6.15B (Est. ~$5.57B) 🟢
🔹 EPS: $2.23-$2.57…— Wall St Engine (@wallstengine) July 22, 2026
Revenue reached $5.46 billion, up 23% year over year and 13% from Q1. That topped the $5.24 billion Wall Street had expected.
Analog revenue rose 26% year over year. Embedded processing was up 16%. Both major segments grew, pointing to a broad demand recovery rather than strength in just one area.
Operating profit came in at $2.3 billion, or 42% of revenue — up 48% from a year earlier. Gross margin hit 61%, up 340 basis points from Q1.
Free cash flow over the trailing 12 months was $6.5 billion, up sharply from $1.8 billion a year ago.
Guidance Topped Estimates But Wasn’t Enough
For Q3, TXN guided revenue of $5.65 billion to $6.15 billion, with a midpoint of $5.90 billion. That beat the $5.63 billion analysts had penciled in.
EPS guidance came in at $2.23 to $2.57, with a midpoint of $2.40 — above the $2.18 consensus.
Management said growth will be driven mainly by unit demand rather than pricing, though the company said it has started raising prices and expects more increases in coming quarters.
Capital expenditure guidance for 2026 was held at $2 billion to $3 billion, with management suggesting spending could trend toward the higher end.
Data Center Sales Double, Automotive Accelerates
CEO Haviv Ilan said data center sales doubled from a year ago, following a 90% rise last quarter. The segment, mostly power-management chips, remains a smaller part of the business but drew analyst attention.
Automotive demand also picked up more clearly this quarter, which management called a positive shift.
Industrial remained a steady contributor, rounding out what the company described as a broad-based recovery across its end markets.
TXN is up roughly 70% year-to-date heading into earnings. That run may help explain the muted after-hours reaction — a solid beat simply didn’t clear a high bar.
Inventory days fell to 196 from 209, a sign the supply-demand picture is tightening.
The company’s Silicon Labs acquisition remains on track to close in the first half of 2027, funded with cash and debt. TXN has raised its dividend for 22 consecutive years, with a current yield of 1.95%.
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