Texas Instruments Inc

Texas Instruments posted a standout second quarter for 2026, with results that cleared Wall Street's bar by a meaningful margin across every major line item. The chipmaker reported diluted EPS of $2.14, beating the consensus estimate of $1.94 by 10.56%, while revenue of $5.46 billion came in 4.31% above expectations and grew 22.8% year over year, driven by broad-based demand across industrial, data center, and automotive end markets. The most material engine behind the beat was a sharp recovery in factory utilization combined with TI's ongoing shift to 300mm wafer production, which helped lift gross profit to $3.35 billion and pushed operating profit up 48% to $2.31 billion. Free cash flow on a trailing twelve-month basis reached $6.53 billion, representing 33.6% of revenue, a dramatic improvement from 10.6% a year earlier, as capital expenditure intensity eased following the completion of major manufacturing capacity buildout phases. Ahead of the report, analyst price target increases had already signaled rising confidence in TI's cycle recovery. Management guided Q3 revenue to $5.65 billion to $6.15 billion, with EPS between $2.23 and $2.57, pointing to continued momentum.