We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TXN posted Q1 2026 EPS of $1.68, up 31% Y/Y, and revenues of $4.83B, up 18.6% Y/Y.
Texas Instruments saw Analog revenues rise 22% and Embedded Processing grow 12% in Q1.
TXN guided Q2 revenues of $5B-$5.4B and EPS of $1.77-$2.05, both above consensus.
Texas Instruments (TXN - Free Report) reported first-quarter 2026 earnings of $1.68 per share, which increased 31.3% year over year. The bottom line beat the Zacks Consensus Estimate by 22.6%.
TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average surprise of 6.9%.
TXN posted revenues of $4.83 billion, which rose 18.6% from the year-ago quarter. The top line surpassed the consensus mark by 6.8%, driven by strength in industrial and data center demand.
Texas Instruments Incorporated Price, Consensus and EPS Surprise
Texas Instruments’ first-quarter results reflected strength across its two core operating segments.
Analog revenues came in at $3.92 billion (81.3% of total revenues), which grew 22% from the year-ago quarter, underscoring improving demand conditions across key end markets. The figure came above our model estimate of $3.57 billion.
Embedded Processing revenues totaled $723 million (15% of total revenues), reflecting 12% year-over-year growth. The figure surpassed our model estimate of $682.9 million.
The Other segment generated $178 million of revenues (3.7% of total revenues), which declined 16% from the prior-year period. The figure missed our model estimate of $278.6 million.
Texas Instruments Expands Operating Leverage
Texas Instruments’ gross profit increased 21% year over year to $2.80 billion. Gross margin of 58% expanded 120 basis points (bps) year over year.
Selling, general and administrative (SG&A) expenses decreased 1.7% year over year to $464 million. As a percentage of revenues, SG&A expenses contracted 200 bps year over year to 9.6%.
Research and development expenses declined 1.4% year over year to $510 million. As a percentage of revenues, it decreased 160 bps year over year to 10.6%.
Operating profit rose 36.6% year over year to $1.81 billion. The operating margin was 37.5%, which expanded 490 bps from the prior-year quarter’s number.
TXN Cash Generation Supports Shareholder Returns
As of March 31, 2026, the cash and short-term investment balance was $5.1 billion, up from $4.88 billion as of Dec. 31, 2025.
At the end of the reported quarter, TXN’s long-term debt was $12.9 billion, down from $13.55 billion in the previous quarter.
Texas Instruments generated an operating cash flow of approximately $1.52 billion in the first quarter. During the first quarter, it repurchased stocks worth $158 million and paid $1.29 billion in dividends.
Texas Instruments Initiates Guidance for Q2 2026
Management’s outlook calls for second-quarter 2026 revenues in the range of $5.00-$5.40 billion. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $4.80 billion, indicating an increase of 7.9% from the year-ago quarter.
The company expects earnings per share between $1.77 and $2.05. The consensus mark for the same is pegged at $1.55 per share, indicating an increase of 9.9% from the year-ago quarter.
The company expects an effective tax rate of about 13% in the second quarter.
On the second-quarter earnings call, management pointed to continued acceleration in industrial and data center, noting industrial growth of more than 30% year over year and data center growth of about 90%. The company also highlighted its agreement to acquire Silicon Labs, a deal it expects to close in the first half of 2027, subject to approvals.
Shares of Arista Networks have gained 35.6% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by a penny over the past seven days, indicating an increase of 18.8% year over year.
Shares of Advanced Energy have gained 80.2% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, up by 12 cents over the past 60 days, indicating a rise of 29.8% year over year.
Applied Materials shares have surged 57% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $11.10 per share, down by a penny over the past 30 days, indicating an increase of 17.8% year over year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Texas Instruments Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Texas Instruments (TXN - Free Report) reported first-quarter 2026 earnings of $1.68 per share, which increased 31.3% year over year. The bottom line beat the Zacks Consensus Estimate by 22.6%.
TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average surprise of 6.9%.
TXN posted revenues of $4.83 billion, which rose 18.6% from the year-ago quarter. The top line surpassed the consensus mark by 6.8%, driven by strength in industrial and data center demand.
Texas Instruments Incorporated Price, Consensus and EPS Surprise
Texas Instruments Incorporated price-consensus-eps-surprise-chart | Texas Instruments Incorporated Quote
TXN’s Segment Mix Highlights Broad-Based Growth
Texas Instruments’ first-quarter results reflected strength across its two core operating segments.
Analog revenues came in at $3.92 billion (81.3% of total revenues), which grew 22% from the year-ago quarter, underscoring improving demand conditions across key end markets. The figure came above our model estimate of $3.57 billion.
Embedded Processing revenues totaled $723 million (15% of total revenues), reflecting 12% year-over-year growth. The figure surpassed our model estimate of $682.9 million.
The Other segment generated $178 million of revenues (3.7% of total revenues), which declined 16% from the prior-year period. The figure missed our model estimate of $278.6 million.
Texas Instruments Expands Operating Leverage
Texas Instruments’ gross profit increased 21% year over year to $2.80 billion. Gross margin of 58% expanded 120 basis points (bps) year over year.
Selling, general and administrative (SG&A) expenses decreased 1.7% year over year to $464 million. As a percentage of revenues, SG&A expenses contracted 200 bps year over year to 9.6%.
Research and development expenses declined 1.4% year over year to $510 million. As a percentage of revenues, it decreased 160 bps year over year to 10.6%.
Operating profit rose 36.6% year over year to $1.81 billion. The operating margin was 37.5%, which expanded 490 bps from the prior-year quarter’s number.
TXN Cash Generation Supports Shareholder Returns
As of March 31, 2026, the cash and short-term investment balance was $5.1 billion, up from $4.88 billion as of Dec. 31, 2025.
At the end of the reported quarter, TXN’s long-term debt was $12.9 billion, down from $13.55 billion in the previous quarter.
Texas Instruments generated an operating cash flow of approximately $1.52 billion in the first quarter. During the first quarter, it repurchased stocks worth $158 million and paid $1.29 billion in dividends.
Texas Instruments Initiates Guidance for Q2 2026
Management’s outlook calls for second-quarter 2026 revenues in the range of $5.00-$5.40 billion. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $4.80 billion, indicating an increase of 7.9% from the year-ago quarter.
The company expects earnings per share between $1.77 and $2.05. The consensus mark for the same is pegged at $1.55 per share, indicating an increase of 9.9% from the year-ago quarter.
The company expects an effective tax rate of about 13% in the second quarter.
On the second-quarter earnings call, management pointed to continued acceleration in industrial and data center, noting industrial growth of more than 30% year over year and data center growth of about 90%. The company also highlighted its agreement to acquire Silicon Labs, a deal it expects to close in the first half of 2027, subject to approvals.
Zacks Rank and Other Stocks to Consider
Currently, TXN carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) and Applied Materials (AMAT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Arista Networks have gained 35.6% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by a penny over the past seven days, indicating an increase of 18.8% year over year.
Shares of Advanced Energy have gained 80.2% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, up by 12 cents over the past 60 days, indicating a rise of 29.8% year over year.
Applied Materials shares have surged 57% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $11.10 per share, down by a penny over the past 30 days, indicating an increase of 17.8% year over year.