Key Takeaways for Texas Instruments Stock as of July 2026
- Revenue hit $5.46 billion, a 4% beat and a 23% year over year jump.
- Guiding third quarter revenue to $5.65 billion to $6.15 billion, above normal seasonal levels, management flagged broad strength across every end market Texas Instruments serves.
- With data center revenue doubling year over year and up 20% sequentially, that segment drove more of the 715 basis point year over year jump in operating margin to 42% than any other line.
- “We are in the start of a cycle that is very, very broad,” said CEO Haviv Ilan, describing an upswing now touching industrial, automotive, data center and personal electronics together.
Every Segment Texas Instruments Named Just Grew at Once
Texas Instruments (TXN) closed its second quarter of 2026 with revenue of $5.46 billion, up 22.82% from a year ago and 13.22% from the prior quarter, blowing past the $5.24 billion analysts had modeled. The beat wasn’t confined to the top line. Adjusted EPS of $2.17 topped estimates by 11.01%, and operating margin expanded to 42.28%, a 715 basis point jump from the year ago quarter.
Every end market that management named grew from a year earlier. Industrial revenue climbed around 30% year over year and 10% sequentially, spreading across sectors and regions rather than concentrating in one pocket. Data center revenue doubled year over year and rose 20% sequentially, while automotive accelerated into the mid teens, a segment that had lagged the broader recovery until this quarter. That breadth confirms the analog recovery thesis laid out earlier this year has now fully played out.
That automotive turn came from customers who had run inventories down to unsustainable levels, CEO Haviv Ilan explained on the Q2 earnings call: “I think we are in the start of a cycle that is very, very broad.” Coming from an executive who typically avoids forecasting multiple quarters out, that statement carries weight. It frames the third quarter guide of $5.65 billion to $6.15 billion in revenue and EPS of $2.23 to $2.57, both above the seasonal pattern Texas Instruments usually sees entering the back half of the year.
Pricing, flat through the first half after years of annual declines, is now moving higher on a customer by customer basis, concentrated mostly in Analog products, with Embedded increases pushed toward next year’s annual discussions. That discipline showed up in cash generation. Trailing twelve month free cash flow reached $6.5 billion, up from $1.8 billion a year earlier, helped by $1.6 billion in CHIPS Act incentives and a $549 million investment tax credit payment received in the quarter.
The quarter also marked the last earnings call for CFO Rafael Lizardi, who retires at the end of August after nearly a decade in the role, with 25 year TI veteran Julie Knecht stepping in as CFO on August 1. Inventory fell to 196 days, down 13 from the prior quarter, even as management held that clean room capacity built during the last cycle now stands ready to absorb demand without a repeat of the multi year buildout delays that hit 2022.
TIKR Prices Texas Instruments Stock at $514, a 75% Return by 2030
TIKR’s mid case model values Texas Instruments stock at $514 by December 2030, implying a 75% total return from the current price of $294, or 13% annualized over 4.4 years.
A 13.4% annualized return over 4.4 years places Texas Instruments stock well ahead of the low single digit gains investors typically expect from mature, dividend paying semiconductor franchises of comparable size.
The target is reachable because the earnings section already shows the mechanics behind it: broad based demand across industrial, automotive and data center end markets, margin expansion of 715 basis points year over year, and a pricing cycle that management is only beginning to phase in. With free cash flow already accelerating to $6.5 billion on a trailing twelve month basis and CapEx guided at $2 billion to $3 billion for the year, Texas Instruments has both the capacity and the balance sheet to keep compounding at the pace TIKR’s model assumes.
Should You Invest in Texas Instruments Incorporated?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
