TXN · Texas Instruments Incorporated

Texas Instruments delivered strong Q1 2026 results with revenue of $4.83 billion, a 19% increase from Q1 2025 and 9% sequential growth, primarily driven by industrial and data center markets as highlighted by CEO Haviv Ilan. The Analog segment, TI's largest, grew 22% to $3.92 billion with operating profit up 36% to $1.64 billion, while Embedded Processing rose 12% to $723 million. Gross profit reached $2.80 billion on improved cost of revenue control, leading to operating profit of $1.81 billion and net income of $1.55 billion. Diluted EPS of $1.68 benefited from a 5-cent item beyond original guidance. Cash generation remained robust, with trailing 12-month operating cash flow at $7.8 billion and free cash flow at $4.4 billion after $4.1 billion in capex, underscoring the benefits of the 300mm production model. The company returned $6.0 billion to shareholders over the past year through $5.1 billion in dividends and $1.0 billion in repurchases, maintaining strong liquidity with $3.5 billion in cash equivalents and $16.8 billion in equity as of March 31, 2026. Balance sheet shows manageable $14.1 billion total debt against total assets of $34.4 billion. Q2 outlook signals continued momentum with revenue expected at $5.00-$5.40 billion and EPS $1.77-$2.05, reflecting confidence in demand and operational efficiency despite non-GAAP adjustments for free cash flow including CHIPS Act incentives.