TI reports second quarter 2026 financial results and shareholder returns
DALLAS (July 22, 2026) – Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $5.46 billion, net income of $1.98 billion and earnings per share of $2.14. Earnings per share included a 5-cent benefit that was not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s chairman, president and CEO, made the following comments:
- “Revenue increased 13% sequentially and 23% from the same quarter a year ago with broad growth led by industrial, data center and automotive.
- “Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $6.5 billion.
- “Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $3.3 billion in capital expenditures and returned $5.8 billion to owners.
- “TI’s third quarter outlook is for revenue in the range of $5.65 billion to $6.15 billion and earnings per share between $2.23 and $2.57.”
Earnings Summary
| (In millions, except per-share amounts) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $5,463 | $4,448 | 23% |
| Operating profit | $2,310 | $1,563 | 48% |
| Net income | $1,980 | $1,295 | 53% |
| Earnings per share | $2.14 | $1.41 | 52% |
Cash Generation and Cash Return (trailing 12 months)
| (In millions) | Q2 2026 (TTM) | Q2 2025 (TTM) | Change |
|---|---|---|---|
| Cash flow from operations | $8,667 | $6,439 | 35% |
| Free cash flow (non-GAAP) | $6,534 | $1,763 | 271% |
| Free cash flow % of revenue | 33.6% | 10.6% | — |
| Dividends paid | $5,112 | $4,900 | 4% |
| Stock repurchases | $707 | $1,810 | (61)% |
| Total cash returned | $5,819 | $6,710 | (13)% |
Consolidated Statements of Income
| (In millions, except per-share amounts) — Three months ended June 30 | 2026 | 2025 |
|---|---|---|
| Revenue | $5,463 | $4,448 |
| Cost of revenue (COR) | 2,111 | 1,873 |
| Gross profit | 3,352 | 2,575 |
| Research and development (R&D) | 535 | 527 |
| Selling, general and administrative (SG&A) | 490 | 485 |
| Acquisition charges | 17 | — |
| Operating profit | 2,310 | 1,563 |
| Other income (expense), net (OI&E) | 69 | 48 |
| Interest and debt expense | 141 | 133 |
| Income before income taxes | 2,238 | 1,478 |
| Provision for income taxes | 258 | 183 |
| Net income | $1,980 | $1,295 |
| Diluted earnings per common share | $2.14 | $1.41 |
| Average shares outstanding — Basic | 912 | 908 |
| Average shares outstanding — Diluted | 920 | 912 |
| Cash dividends declared per common share | $1.42 | $1.36 |
Provision for income taxes is based on the following: operating taxes (calculated using the estimated annual effective tax rate) of $309 million, less discrete tax items of $(51) million, for effective taxes of $258 million. A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents: income allocated to RSUs of $(11) million leaves $1,969 million of income allocated to common stock for diluted EPS.
Segment Results
| (In millions) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Analog — Revenue | $4,365 | $3,452 | 26% |
| Analog — Operating profit | $1,992 | $1,325 | 50% |
| Embedded Processing — Revenue | $788 | $679 | 16% |
| Embedded Processing — Operating profit | $168 | $85 | 98% |
| Other — Revenue | $310 | $317 | (2)% |
| Other — Operating profit* | $150 | $153 | (2)% |
* Includes acquisition charges.
Consolidated Balance Sheets
| (In millions, except par value) — June 30 | 2026 | 2025 |
|---|---|---|
| Cash and cash equivalents | $3,660 | $3,044 |
| Short-term investments | 3,341 | 2,315 |
| Accounts receivable, net | 2,520 | 1,934 |
| Inventories | 4,605 | 4,812 |
| Prepaid expenses and other current assets | 1,631 | 2,379 |
| Total current assets | 15,757 | 14,484 |
| Property, plant and equipment, net | 11,911 | 12,321 |
| Goodwill | 4,330 | 4,362 |
| Deferred tax assets | 1,017 | 1,096 |
| Capitalized software licenses | 314 | 248 |
| Overfunded retirement plans | 316 | 253 |
| Other long-term assets | 2,237 | 2,169 |
| Total assets | $35,882 | $34,933 |
| Current portion of long-term debt | $1,149 | $— |
| Accounts payable | 680 | 881 |
| Total current liabilities | 3,244 | 2,492 |
| Long-term debt | 12,903 | 14,043 |
| Total liabilities | 17,875 | 18,530 |
| Total stockholders’ equity | 18,007 | 16,403 |
| Total liabilities and stockholders’ equity | $35,882 | $34,933 |
Consolidated Statements of Cash Flows
| (In millions) — Three months ended June 30 | 2026 | 2025 |
|---|---|---|
| Cash flows from operating activities | $2,703 | $1,860 |
| Capital expenditures | (514) | (1,305) |
| Proceeds from CHIPS Act incentives | 549 | — |
| Cash flows from investing activities | (1,702) | (1,335) |
| Dividends paid | (1,295) | (1,235) |
| Stock repurchases | (27) | (302) |
| Cash flows from financing activities | (890) | (244) |
| Net change in cash and cash equivalents | 111 | 281 |
| Cash and cash equivalents at end of period | $3,660 | $3,044 |
Supplemental cash flow information: investment tax credit (ITC) used to reduce income taxes payable of $301 million plus CHIPS Act incentive proceeds of $549 million made the total cash benefit related to the CHIPS Act $850 million for the quarter (versus $203 million a year ago).
Non-GAAP Reconciliation: Free Cash Flow
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.
| (In millions) | Q2 2026 (3 mo.) | TTM 2026 | TTM 2025 | Change |
|---|---|---|---|---|
| Cash flow from operations (GAAP)* | $2,703 | $8,667 | $6,439 | 35% |
| Capital expenditures | (514) | (3,312) | (4,936) | — |
| Proceeds from CHIPS Act incentives | 549 | 1,179 | 260 | — |
| Free cash flow (non-GAAP) | $2,738 | $6,534 | $1,763 | 271% |
| Revenue | — | $19,453 | $16,675 | — |
| Cash flow from operations as a % of revenue (GAAP) | — | 44.6% | 38.6% | — |
| Free cash flow as a % of revenue (non-GAAP) | — | 33.6% | 10.6% | — |
* Includes cash benefits of $301 million, $433 million and $479 million from the CHIPS Act ITC used to reduce income taxes payable for the three months ended June 30, 2026, and the twelve months ended June 30, 2026 and 2025, respectively.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
Forward-Looking Statements
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of TI’s most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances.