--- title: "Texas Instruments | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 5.463 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/293764825.md" datetime: "2026-07-24T13:38:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293764825.md) - [en](https://longbridge.com/en/news/293764825.md) - [zh-HK](https://longbridge.com/zh-HK/news/293764825.md) --- # Texas Instruments | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 5.463 B Revenue: As of FY2026 Q2, the actual value is USD 5.463 B, beating the estimate of USD 5.253 B. EPS: As of FY2026 Q2, the actual value is USD 2.14, beating the estimate of USD 1.9381. EBIT: As of FY2026 Q2, the actual value is USD 2.379 B. Texas Instruments Incorporated’s overall performance in the second quarter of 2026 included a net income of $1.98 billion, with revenue increasing by 13% sequentially and 23% year-over-year . For the trailing 12 months, cash flow from operations was $8.7 billion, and free cash flow was $6.5 billion . The company invested $3.9 billion in R&D and SG&A and $3.3 billion in capital expenditures over the past 12 months . #### Segmented Financial Metrics - Second Quarter (Three Months Ended June 30) **Analog Segment:** Revenue: $4.365 billion in Q2 2026, an increase of 26% from $3.452 billion in Q2 2025 . Operating Profit: $1.992 billion in Q2 2026, up 50% from $1.325 billion in Q2 2025 . Operating Profit % of Revenue: 45.6% in Q2 2026, compared to 38.4% in Q2 2025 . **Embedded Processing Segment:** Revenue: $788 million in Q2 2026, an increase of 16% from $679 million in Q2 2025 . Operating Profit: $168 million in Q2 2026, up 98% from $85 million in Q2 2025 . Operating Profit % of Revenue: 21.3% in Q2 2026, compared to 12.5% in Q2 2025 . **Other Segment:** Revenue: $310 million in Q2 2026, a decrease of -2% from $317 million in Q2 2025 . Operating Profit: $150 million in Q2 2026, a decrease of -2% from $153 million in Q2 2025, which includes acquisition charges . Operating Profit % of Revenue: 48.4% in Q2 2026, compared to 48.3% in Q2 2025 . #### Segmented Financial Metrics - Year-to-Date (Six Months Ended June 30) **Analog Segment:** Revenue: $8.289 billion in YTD 2026, an increase of 24% from $6.662 billion in YTD 2025 . Operating Profit: $3.630 billion in YTD 2026, up 43% from $2.531 billion in YTD 2025 . Operating Profit % of Revenue: 43.8% in YTD 2026, compared to 38.0% in YTD 2025 . **Embedded Processing Segment:** Revenue: $1.511 billion in YTD 2026, an increase of 14% from $1.326 billion in YTD 2025 . Operating Profit: $290 million in YTD 2026, up 132% from $125 million in YTD 2025 . Operating Profit % of Revenue: 19.2% in YTD 2026, compared to 9.4% in YTD 2025 . **Other Segment:** Revenue: $488 million in YTD 2026, a decrease of -8% from $529 million in YTD 2025 . Operating Profit: $198 million in YTD 2026, a decrease of -14% from $231 million in YTD 2025, which includes acquisition charges . Operating Profit % of Revenue: 40.6% in YTD 2026, compared to 43.7% in YTD 2025 . #### Consolidated Operational Metrics - **Gross Profit:** $3.352 billion in Q2 2026, up 30% from Q2 2025, with gross profit as a percentage of revenue increasing to 61.4% from 57.9% . Year-to-date, gross profit was $6.151 billion, up 26%, with the percentage of revenue at 59.8% from 57.4% . - **Operating Expenses:** $1.03 billion in Q2 2026, compared to $1.01 billion in Q2 2025; YTD operating expenses were $2.00 billion in both 2026 and 2025 . - **Acquisition Charges:** $17 million in Q2 2026 and $34 million YTD 2026, related to the planned acquisition of Silicon Labs . - **Operating Profit:** $2.31 billion (42.3% of revenue) in Q2 2026, compared to $1.56 billion (35.1% of revenue) in Q2 2025 . Year-to-date, operating profit was $4.12 billion (40.0% of revenue) in 2026, compared to $2.89 billion (33.9% of revenue) in 2025 . - **Net Income:** $1.98 billion in Q2 2026, compared to $1.30 billion in Q2 2025 . Year-to-date net income was $3.53 billion in 2026, compared to $2.47 billion in 2025 . #### Cash Flow - **Cash Flow from Operating Activities (YTD):** $4.22 billion for the first six months of 2026, an increase of $1.51 billion from the prior year . - **Cash Flow from Operating Activities (Trailing 12 Months):** $8.667 billion for the 12 months ended June 30, 2026, compared to $6.439 billion for the same period in 2025 . - **Free Cash Flow (Trailing 12 Months):** $6.534 billion for the 12 months ended June 30, 2026, significantly up from $1.763 billion in the prior year . - **Capital Expenditures (YTD):** $1.19 billion for the first six months of 2026, compared to $2.43 billion in the year-ago period . - **Proceeds from U.S. CHIPS and Science Act (CHIPS Act) Incentives (YTD):** $1.104 billion for the first six months of 2026, compared to $260 million in the year-ago period . - **Total Cash Benefit from CHIPS Act (YTD):** $1.405 billion for the first six months of 2026, compared to $463 million in the year-ago period, including investment tax credits . - **Dividends Paid (YTD):** $2.586 billion for the first six months of 2026, compared to $2.473 billion in the year-ago period . - **Stock Repurchases (YTD):** $185 million to repurchase 0.9 million shares for the first six months of 2026, compared to $955 million to repurchase 5.4 million shares in the year-ago period . #### Financial Condition - **Total Cash:** $7.00 billion as of June 30, 2026, an increase of $2.12 billion from the end of 2025 . - **Accounts Receivable:** $2.52 billion as of June 30, 2026, with days sales outstanding at 42 . - **Inventory:** $4.61 billion as of June 30, 2026, a decrease of -$199 million from the end of 2025, with days of inventory at 196 . - **Long-term Debt:** $14.052 billion as of June 30, 2026, including a current portion of $1.149 billion . #### Future Outlook and Strategy Texas Instruments Incorporated’s strategy centers on maximizing long-term free cash flow per share growth through a strong business model, disciplined capital allocation, and efficiency, focusing on Analog and Embedded Processing products with competitive advantages in manufacturing, product portfolio, market channels, and product diversity . The company plans continued investment in 300mm wafer production for cost advantage and manufacturing capacity to meet customer demand, expecting capital expenditures between $2 billion to $3 billion in 2026, alongside anticipated benefits from the CHIPS Act . Furthermore, Texas Instruments Incorporated expects to close the $7.5 billion acquisition of Silicon Labs in the first half of 2027, funded by cash on hand and secured debt financing . ### Related Stocks - [TXN.US](https://longbridge.com/en/quote/TXN.US.md) ## Related News & Research - [Texas Instruments Generates Strong Free Cash Flow - But TXN Stock Looks Cheap to Value Buyers](https://longbridge.com/en/news/293762550.md) - [BUZZ-Street View: Texas Instruments to benefit from pricing gains](https://longbridge.com/en/news/293608215.md) - [Baxter Q2 2026 Earnings Preview](https://longbridge.com/en/news/294224876.md) - [Hercules Capital declares Q2 2026 cash distribution of $0.47 per share](https://longbridge.com/en/news/294045773.md) - [Bloom Credit finalist for Finovate Awards Best Embedded Finance Solution category](https://longbridge.com/en/news/294237399.md)