--- title: "Texas Instruments Says AI Data Center Demand Will Stay Strong 'for the Foreseeable Future'" type: "News" locale: "en" url: "https://longbridge.com/en/news/293596628.md" description: "Texas Instruments reported Q2 2026 earnings that beat estimates, with revenue rising 23% year-over-year to $5.46 billion, driven by strong demand in industrial and data center sectors. The company announced a CFO transition and issued positive Q3 guidance. Despite the strong results, TXN stock fell in premarket trading due to profit-taking after a significant rally and broader market caution." datetime: "2026-07-23T09:58:46.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293596628.md) - [en](https://longbridge.com/en/news/293596628.md) - [zh-HK](https://longbridge.com/zh-HK/news/293596628.md) --- # Texas Instruments Says AI Data Center Demand Will Stay Strong 'for the Foreseeable Future' **Texas Instruments Inc.** (NASDAQ:TXN) stock fell in premarket trading Thursday after the chipmaker reported second-quarter 2026 results that topped Wall Street estimates but issued mixed guidance and announced a chief financial officer transition. ## Earnings Beat Estimates Texas Instruments reported second-quarter revenue of $5.46 billion, topping analysts’ estimate of $5.25 billion. Earnings came in at $2.14 per share, ahead of the consensus estimate of $1.92 per share, according to Benzinga Pro. Revenue increased 13% sequentially and 23% from a year earlier, driven by continued strength in the company’s Analog and Embedded Processing businesses. Gross profit rose to $3.4 billion, resulting in a 61% gross margin, while operating profit climbed 48% year over year to $2.3 billion. The company generated $2.7 billion in operating cash flow during the quarter and spent $514 million on capital expenditures. It ended the quarter with $7 billion in cash and short-term investments. ## Industrial, Data Center Drive Growth Industrial revenue increased about 30% from a year earlier and 10% sequentially, supported by broad-based demand. Automotive revenue grew in the mid-teens year over year and in the upper-single digits sequentially. Data center revenue doubled from a year earlier and increased about 20% from the previous quarter. Within its business segments, Analog revenue rose 26% year over year, while Embedded Processing increased 16%. The Other segment declined 2%. Personal electronics revenue was flat from a year earlier but improved sequentially. Communications equipment revenue increased on both an annual and sequential basis. ## Outlook And CFO Transition Texas Instruments said AI infrastructure demand remains a long-term growth driver, with management expecting strong data center demand to continue as higher-power server architectures require more analog and embedded chips. For the third quarter, Texas Instruments expects revenue of $5.65 billion to $6.15 billion, compared with analysts’ estimate of $5.61 billion. The company forecast earnings of $2.23 to $2.57 per share, above the consensus estimate of $2.15 per share. Texas Instruments said it continues to implement price increases amid strong demand while expanding its 300-millimeter manufacturing capacity. The company also announced that **Julie Knecht** will succeed **Rafael Lizardi** as chief financial officer following his retirement. ## Why Texas Instruments Stock Is Falling The pullback appears to stem from profit-taking following the stock’s nearly 70% year-to-date rally, rather than disappointment with the company’s latest results. Cautious premarket sentiment across the broader market also weighed on investor positioning. Nasdaq futures slipped 0.32%, while S&P 500 futures lost 0.33%, adding pressure to semiconductor stocks. Texas Instruments remains well above its long-term trend levels. However, the recent pullback has left the stock under pressure in the short term as traders lock in gains. Texas Instruments remains under short-term pressure, trading below its 20-day and 50-day moving averages. However, it stays above its 100-day and 200-day averages, keeping the longer-term uptrend intact. The RSI of 48.47 signals neutral momentum. Resistance stands near $315.50, while support is around $276.00. **TXN Price Action:** Texas Instruments shares were down 5.14% at $279.06 during premarket trading on Thursday, according to Benzinga Pro data. _Photo via Shutterstock_  **Read Also: Chip Stocks Retreat As Yemen’s Houthis Enter The War; Alphabet, Tesla Earnings Ahead** ### Related Stocks - [TXN.US](https://longbridge.com/en/quote/TXN.US.md) - [TXNU.US](https://longbridge.com/en/quote/TXNU.US.md) - [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) ## Related News & Research - [Texas Instruments Inc. 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