10-QPeriod: Q1 FY2026

TEXAS INSTRUMENTS INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 24, 2026For Securities:TXN

Summary

Texas Instruments (TXN) reported a strong first quarter for 2026, with significant year-over-year growth in revenue and net income. Revenue increased by 19% to $4.83 billion, driven by robust demand in the industrial and automotive sectors, and further bolstered by growth in data center applications. Net income saw a substantial jump of 31%, reaching $1.55 billion, which translated to diluted earnings per share (EPS) of $1.68, up from $1.28 in the prior year's quarter. This performance reflects the company's strategic focus on its Analog and Embedded Processing segments and its ability to capitalize on the ongoing recovery in the semiconductor market. The company highlighted its robust financial position and commitment to shareholder returns. Despite a temporary increase in acquisition charges related to the pending acquisition of Silicon Labs, operating profit margins improved, demonstrating operational efficiency. TXN continues to invest in its manufacturing capabilities, particularly in 300mm wafer production, positioning itself for long-term free cash flow growth. The company also noted significant cash flow from operations and a strategic approach to capital allocation, including continued dividend payments and share repurchases, underscoring its confidence in sustained performance and shareholder value creation.

Financial Highlights

51 data points
Beta

Revenue

$4.83B

58.0% Gross Margin

Net Income

$1.54B

32.0% Net Margin

EPS (Diluted)

$1.68

Total Assets

$34.39B

Cash & Equivalents

$3.55B

Free Cash Flow

$844.00M

Financial Statements
Beta
Revenue$4.83B
Cost of Revenue$2.03B
Gross Profit$2.80B
R&D Expenses$510.00M
SG&A Expenses$464.00M
Operating Income$1.81B
Net Income$1.54B
EPS (Basic)$1.69
EPS (Diluted)$1.68
Shares Outstanding (Basic)909.00M
Shares Outstanding (Diluted)914.00M

Key Highlights

  • 1Revenue for the first quarter of 2026 surged 19% year-over-year to $4.83 billion, indicating strong market demand.
  • 2Net income increased by 31% to $1.55 billion, resulting in diluted EPS of $1.68, a significant improvement from $1.28 in Q1 2025.
  • 3The Analog segment showed strong growth, with revenue up 22% and operating profit up 36%, driven by Power and Signal Chain product lines.
  • 4Operating expenses (R&D and SG&A) remained relatively flat year-over-year at $974 million, contributing to improved operating margins.
  • 5The company generated $1.52 billion in cash flow from operating activities, a substantial increase from $849 million in the prior year, underscoring business model strength.
  • 6TXN is progressing with the planned acquisition of Silicon Labs, a $7.5 billion all-cash transaction expected to close in the first half of 2027, though it incurred $17 million in acquisition charges during the quarter.
  • 7Total cash and short-term investments stood at $5.10 billion, providing ample liquidity and financial flexibility.

Frequently Asked Questions

Revenue growth in Q1 2026 was primarily driven by increased demand in the Analog segment, particularly in Power and Signal Chain product lines, and to a lesser extent, in the Embedded Processing segment. Growth was also supported by demand in the industrial, automotive, and data center markets.

TXN is nearing the end of a six-year elevated capital expenditure cycle focused on 300mm wafer production. For 2026, capital expenditures are expected to be between $2 billion and $3 billion. The company is also benefiting from the U.S. CHIPS and Science Act, which provides direct funding and investment tax credits for its manufacturing facilities.

Texas Instruments has entered into a definitive agreement to acquire Silicon Labs for approximately $7.5 billion in an all-cash transaction, expected to close in the first half of 2027, pending regulatory and shareholder approvals. In Q1 2026, the company incurred $17 million in acquisition charges related to this transaction. The deal is expected to be funded by existing cash and debt financing.

For the trailing twelve months ended March 31, 2026, Texas Instruments reported free cash flow of $4.35 billion, a significant increase from $1.72 billion in the prior year period. This growth is attributed to strong cash flow from operations and effective capital expenditure management, with proceeds from CHIPS Act incentives also contributing.