01—Abstract
Summary
Summary of the 8-K filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Texas Instruments reported first-quarter 2026 revenue of $4.83 billiona, up 19% year over year and 9% sequentially, with net income of $1.55 billion (up 31%) and diluted EPS of $1.68 versus $1.28 a year earlier.
Growth was led by the Analog segment (revenue up 22%, operating profit up 36%) and management cited industrial and data center demand as the primary drivers. Operating profit rose 37% to $1.81 billionb, and the release notes that EPS included a 5-cent benefit not in the original guidance, so the underlying beat is somewhat smaller than the headline figure implies. Cash generation was the standout.
Trailing-twelve-month cash flow from operations reached $7.82 billionc (up 27%) and free cash flow reached $4.35 billion (up 154%), equal to 23.6% of revenue on a trailing basis versus 10.7% a year earlier. Free cash flow benefited from lower capital expenditures (trailing-twelve-month capex of $4.10 billion versus $4.70 billion) and $630 million of CHIPS Act incentive proceeds. Shareholder returns totaled $6.03 billion over the trailing twelve months, mostly dividends ($5.05 billion), with buybacks reduced to $982 million from $1.58 billion.
Quarterly stock repurchases fell to $158 milliond from $653 million a year ago. Looking ahead, management guided second-quarter revenue to $5.00-$5.40 billion and EPS to $1.77-$2.05. The balance sheet shows $5.1 billion in cash and short-term investments against $14.05 billion of total debt (including the $1.15 billion current portion), and the current portion of long-term debt is new versus a year earlier.
Dividends declared per share rose to $1.42 from $1.36. Investors should watch whether the revenue recovery sustains the guided growth path and whether capex stays subdued enough to keep free cash flow strong.
02—Key points
Key Highlights
- Q1 2026 revenue of $4.83B, up 19% YoY and 9% QoQ, led by industrial and data center demand
- Net income rose 31% to $1.55B; diluted EPS of $1.68 vs. $1.28, including a 5-cent benefit not in original guidance
- Analog revenue up 22% to $3.92B with operating profit up 36%; Embedded Processing revenue up 12% with operating profit up 205%
- Trailing-twelve-month free cash flow of $4.35B (up 154%), or 23.6% of revenue, driven by lower capex and CHIPS Act proceeds
- Trailing-twelve-month capital returns of $6.03B, with dividends of $5.05B and buybacks down 38% to $982M
- Q2 2026 guidance: revenue of $5.00-$5.40B and EPS of $1.77-$2.05
- Current portion of long-term debt of $1.15B appears on the balance sheet, against $3.55B cash and $1.55B short-term investments
03—Questions
Frequently Asked Questions
How strong was TI's first-quarter 2026 performance?
Revenue rose 19% year over year to $4.83 billion, operating profit rose 37% to $1.81 billion, and diluted EPS rose 31% to $1.68. Management attributed growth primarily to industrial and data center end markets, and noted that EPS included a 5-cent benefit not in the original guidance.
What is driving the jump in free cash flow?
Trailing-twelve-month free cash flow rose to $4.35 billion from $1.72 billion, mainly because capital expenditures fell to $4.10 billion from $4.70 billion and CHIPS Act incentive proceeds rose to $630 million from $260 million. Cash flow from operations also increased 27% to $7.82 billion.
What does the second-quarter guidance imply?
TI guided Q2 2026 revenue to $5.00-$5.40 billion, implying roughly 4% to 12% sequential growth from Q1's $4.83 billion, and EPS of $1.77-$2.05, which is above the Q1 level of $1.68.
Is TI's shareholder return sustainable and how has it changed?
Dividends paid over the trailing twelve months were $5.05 billion, up 4%, and dividends declared per share rose to $1.42 from $1.36. Buybacks fell 38% to $982 million, and quarterly repurchases dropped to $158 million from $653 million a year earlier, so the return mix has shifted toward dividends. Sustainability depends on continued free cash flow growth, which relies on the revenue recovery holding.
Are there any balance sheet concerns?
Total debt is about $14.05 billion, including a $1.15 billion current portion that was zero a year earlier, against $5.10 billion in cash and short-term investments. Total stockholders' equity increased to $16.78 billion. Liquidity appears adequate, but investors may want to review the debt maturity schedule in the 10-Q.
04—Continue