Texas Instruments (TXN) Q2 2026 earnings summary

Executive summary

• Second quarter revenue reached $5.5 billion, up 13% sequentially and 23% year-over-year, with broad-based growth across industrial, automotive, and data center markets.

• Net income for Q2 2026 was $2 billion, or $2.14 per share, including a $0.05 discrete tax benefit above guidance.

• Cash flow from operations over the trailing 12 months was $8.7 billion, with free cash flow at $6.5 billion.

• $5.8 billion was returned to shareholders over the past 12 months through dividends and stock repurchases.

• Demand strength is broad-based, with inventory and capacity investments supporting customer needs.

Financial highlights

• Gross profit was $3.4 billion (61% of revenue), with gross margin up 340 basis points sequentially.

• Operating profit reached $2.31 billion (42% of revenue), up 48% from the year-ago quarter.

• Free cash flow for Q2 2026 was $2.74 billion, a 271% increase year-over-year.

• Free cash flow for the trailing 12 months was $6.5 billion, up from $1.8 billion a year ago, aided by $1.6 billion in CHIPS Act incentives.

• Cash and cash equivalents at quarter-end were $3.66 billion.

Outlook and guidance

• Q3 revenue expected between $5.65 billion and $6.15 billion; EPS guidance is $2.23–$2.57.

• Effective tax rate for Q3 projected at 13%.

• Strong demand anticipated across all markets, with particular strength in industrial, data center, and automotive.