A maker of analog and embedded processing semiconductors, Texas Instruments supplies the power-management chips, microcontrollers, and processors inside cars, factories, phones, and data centers. It began in 1930 as Geophysical Service, a Dallas oil-exploration firm, renaming itself Texas Instruments in 1951. Three years later it built the first commercial transistor radio, and engineer Jack Kilby invented the integrated circuit there in 1958.
Q2 FY2026 revenue rose 18.6% to $4.83B with gross margin up 1.2 points to 58.0%
The recovery held and widened in Q2. Revenue rose 18.6% to $4.83B and expanded 1.2 points to 58.0% as and demand recovered, with up 36.6% to $1.81B. The company is back to growth but carries $12.9B of ahead of a $7.5B acquisition.
Key takeaways
rose 18.6% to $4.83B, led by up 22% and up 12% on industrial and data center demand recovery, the fourth straight increase after eight quarters of decline.
expanded 1.2 points to 58.0% from 56.8% a year earlier as higher more than offset manufacturing costs from capacity expansions, and grew 21% to $2.80B.
rose 36.6% to $1.81B (37.5% of ) from $1.32B, with $17M in one-off acquisition charges for the planned deal included.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 23% YoY to $5.46B, driven by broad demand recovery led by industrial, data center, and automotive, with gross margin expanding to 61.4%.
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increased 23% to $5.46B, with up 26% and up 16%, driven by higher demand across industrial, data center, and automotive markets.
was $4.4B, supported by $7.8B in and Q1 of $676M down from $1.12B a year ago, as the company nears the end of a six-year elevated cycle.
decreased to 209 from 222 at year-end 2025 under the company's build-ahead strategy.
The company expects 2026 of $2–$3B and plans to fund the $7.5B acquisition with cash and debt.
What changed
Q1 2026 flagged watching whether the 22% rise holds; Q2 rose 18.6% with Analog up 22% and up 12%, so the recovery held.
FY 2025 flagged 2026 against the 16.6% of level; free cash flow reached $4.4B (about 23% of revenue) with falling to $2–3B.
fell 14% in 2025; Q1 and Q2 2026 show up 12% and 12% but the filing does not report operating profit this quarter.
flagged against the 105–135 day target after 2023 ended at 205; Q1 2026 was 209 and Q2 decreased to 209 from 222 at year-end 2025, still above target.
acquisition progress toward H1 2027 close continued; a $5B delayed draw term loan facility was arranged and the deal remains funded by cash and debt.
Risk factors in this 10-Q restate the 2025 10-K items by reference with no new risk added, so the acquisition and exposure carry forward unchanged.
What to watch
Q3 2026 to see if the 22% Q2 rise holds as the recovery matures.
Next trailing figure against the $4.4B Q2 level as stays at $2–3B.
Next disclosure against the 105–135 day target after Q2 showed 209.
acquisition progress and any additional debt issuance toward the H1 2027 close.
rose 30% to $3.35B, and expanded from 57.9% to 61.4%, primarily due to higher , partially offset by higher manufacturing costs from planned capacity expansions.
grew 48% to $2.31B, with improving from 35.1% to 42.3%, reflecting growth and .
Trailing 12-month reached $6.5B, up 271% , supported by $8.7B in , lower of $3.3B, and $1.2B in incentive proceeds.
The company announced a $7.5B all-cash acquisition of Silicon Labs, expected to close in H1 2027, funded by cash and debt, with a $5B delayed draw term loan facility arranged.
are expected to be $2B–$3B in 2026, down from prior periods, with future dependent on and growth expectations.
Information with respect to legal proceedings can be found in Note 8 to the financial statements. Pursuant to SEC regulation, we have elected to use a disclosure threshold of $1 million in monetary sanctions for environmental proceedings involving a governmental authority.
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Information with respect to legal proceedings can be found in Note 8 to the financial statements.
Pursuant to SEC regulation, we have elected to use a disclosure threshold of $1 million in monetary sanctions for environmental proceedings involving a governmental authority.
Information concerning our risk factors is contained in Item 1A of our Form 10-K for the year ended December 31, 2025, and is incorporated by reference herein.
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Information concerning our risk factors is contained in Item 1A of our Form 10-K for the year ended December 31, 2025, and is incorporated by reference herein.