Texas Instruments (TXN) Reports Strong Q2 2026 Results with Revenue Up +23%
Key Takeaways
- Texas Instruments reported Q2 2026 revenue of $5.46 billion, up 23% year over year.
- Diluted earnings per share reached $2.14, exceeding analyst estimates and rising 52% from the prior year.
- Net income totaled $1.98 billion, reflecting strong operating leverage and margin expansion.
- Growth was led by the industrial, data center, and automotive end markets.
- The company provided Q3 2026 revenue guidance of $5.65 billion to $6.15 billion.
- Trailing twelve-month free cash flow stood at $6.5 billion, underscoring robust cash generation.
Why These Results Matter
Texas Instruments, a leading semiconductor manufacturer, released its second-quarter 2026 results on July 22 amid a recovering chip cycle. The quarter’s performance highlights the company’s exposure to high-growth areas such as industrial automation, data centers, and electric vehicles. Strong sequential and year-over-year gains demonstrate improving demand and operational efficiency following softer periods in prior years. From what I see, investors closely monitor these results for signals on broader semiconductor demand trends and the company’s ability to sustain profitability in a competitive landscape. I also checked this using Tickeron’s AI tools to compare performance against industry peers.
The Reported Results
Texas Instruments posted revenue of $5.46 billion for the second quarter of 2026, a 23% increase from $4.45 billion in the same quarter of 2025. Diluted earnings per share came in at $2.14, up 52% from $1.41 a year earlier and above consensus expectations. Net income rose 53% to $1.98 billion. Operating profit increased 48% to $2.31 billion. Segment performance showed analog revenue up 26% and embedded processing revenue up 16%. The company also issued third-quarter guidance of $5.65 billion to $6.15 billion in revenue and $2.23 to $2.57 in earnings per share.
Market Reaction and Investor Sentiment
Shares of TXN experienced volatility following the July 22 release, with initial gains giving way to modest declines in extended trading despite the beat. Analysts highlighted the company’s raised outlook and broad-based revenue growth as positive developments. Investor focus centered on the strength of industrial and automotive demand as well as the company’s ability to convert revenue into free cash flow. The results reinforced confidence in the semiconductor recovery narrative heading into the second half of the year.
Using Tickeron’s AI Screener for Deeper Analysis
As part of my ongoing research process, I turned to Tickeron’s AI Screener to filter and compare TXN against other semiconductor names. This AI-powered tool helps scan for technical patterns, fundamentals, and performance metrics across thousands of stocks and ETFs. It allows for customizable filters on industry, market cap, volatility, and trends, which can surface ideas more efficiently than manual review. In this case, it helped confirm where TXN stood relative to peers on key growth indicators. I find it a useful addition when evaluating earnings beats in the sector.
Forward Outlook and Key Factors to Monitor
Texas Instruments provided upbeat guidance for the third quarter, signaling continued momentum in its core markets. Investors should watch for updates on inventory levels across the supply chain and any shifts in end-market demand, particularly in industrial and automotive segments.
Capital expenditure trends and the benefits from 300-millimeter wafer production remain important for margin sustainability. The company’s ongoing investments in research and development will influence long-term competitiveness in analog and embedded processing technologies.
Broader economic indicators, including industrial production data and automotive sales figures, could provide additional context for demand trends. Free cash flow generation and capital return policies will also stay in focus as the firm balances growth investments with shareholder distributions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsTXN's Stochastic Oscillator remains in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TXN advanced for three days, in of 295 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TXN as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TXN turned negative on July 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
TXN moved below its 50-day moving average on July 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TXN crossed bearishly below the 50-day moving average on July 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TXN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TXN broke above its upper Bollinger Band on June 18, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TXN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.859) is normal, around the industry mean (16.977). P/E Ratio (50.289) is within average values for comparable stocks, (239.136). Projected Growth (PEG Ratio) (1.416) is also within normal values, averaging (1.726). Dividend Yield (0.019) settles around the average of (0.015) among similar stocks. P/S Ratio (14.556) is also within normal values, averaging (43.383).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a manufacturer of integrated circuit semiconductors and calculators
Industry Semiconductors