TXN stock in focus as Texas Instruments posts Q2 results
Texas Instruments reported second-quarter 2026 revenue of $5.46 billion and earnings per share of $2.14, putting TXN stock in the spotlight as chip earnings season opens. Growth of 23% year over year was led by industrial, data center and automotive demand, while management guided third-quarter revenue to $5.65 billion to $6.15 billion.
Key Takeaways
- TI posted Q2 2026 revenue of $5.46 billion, up 23% year over year and 13% sequentially.
- EPS came in at $2.14, including a 5-cent benefit not in original guidance; net income was $1.98 billion.
- Analog revenue rose 26% to $4.37 billion; embedded processing climbed 16% to $788 million.
- Q3 outlook calls for revenue of $5.65 to $6.15 billion and EPS of $2.23 to $2.57.
- Trailing 12-month free cash flow reached $6.5 billion as TI returned $5.8 billion to owners.
What did Texas Instruments report for Q2 2026?
According to the company's official results release, Texas Instruments (Nasdaq: TXN) delivered revenue of $5.463 billion in the quarter ended June 30, 2026, compared with $4.448 billion a year earlier.
Operating profit rose 48% to $2.31 billion. Net income jumped 53% to $1.98 billion. Diluted earnings per share were $2.14, up from $1.41 in Q2 2025.
CEO Haviv Ilan said growth was broad-based and led by industrial, data center and automotive markets. Analog chips remained the core engine, with segment revenue of $4.365 billion, up 26%. Embedded processing revenue was $788 million, up 16%.
Why does this matter for TXN stock?
TXN stock had been under pressure heading into the print. A pre-earnings market preview noted semiconductor shares were down about 22% on average over the prior month, with Texas Instruments down roughly 14% in that stretch.
That backdrop made Wednesday's report a key test for investors watching analog demand and cash returns. Over the trailing 12 months, TI generated $8.7 billion in cash flow from operations and $6.5 billion in free cash flow. The company invested $3.9 billion in R&D and SG&A, spent $3.3 billion on capital expenditures, and returned $5.8 billion to shareholders.
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What is TI guiding for the next quarter?
Management's third-quarter outlook points to continued expansion. TI expects revenue between $5.65 billion and $6.15 billion, with earnings per share between $2.23 and $2.57.
Before the release, analysts surveyed in market coverage had looked for roughly 18% year-over-year revenue growth. The reported 23% increase cleared that bar on the top line and kept focus on whether industrial and automotive demand can sustain the rebound.
Cash returns remain central to the TXN stock story. In Q2 alone, TI paid $1.295 billion in dividends and repurchased $27 million of stock. The company also listed a cash dividend of $1.42 per common share for the quarter.