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Companies · TXN · Semiconductors & Related Devices · Earnings · Jul 22, 2026

Revenue and EPS beat consensus; industrial-led recovery accelerated

Beatpartly known
EPS $2.14 vs ~$1.92 consensus; revenue $5.46B vs ~$5.24B
TEXAS INSTRUMENTS INC (TXN) — what happened, in plain English, and what it means versus what the market expected.

The quarter cleared a fairly high market bar. Published expectations were roughly $1.92 in EPS and $5.24 billion in revenue, so the reported $2.14 and $5.46 billion represent clear beats rather than merely strong year-over-year growth.

MetricQ2 2026Q2 2025ChangeMarket comparison
Revenue$5.463B$4.448B+23%vs ~$5.24B consensus
Operating profit$2.310B$1.563B+48%—
Net income$1.980B$1.295B+53%—
Diluted EPS$2.14$1.41+52%vs ~$1.92 consensus
Free cash flow, trailing 12 months$6.534B$1.763B+271%—

The operating recovery was broad but led by Analog. Analog revenue rose 26% to $4.365 billion and operating profit jumped 50% to $1.992 billion, while Embedded Processing revenue grew 16% and operating profit nearly doubled to $168 million. That mix indicates the beat was not dependent on a single small business, although the largest segment carried most of the upside. (Segment results — Analog and Embedded Processing)

EPS quality was better than the headline suggests. The company disclosed a five-cent benefit that was not included in its original guidance; excluding that item, EPS would have been approximately $2.09. That still implies a meaningful beat against the roughly $1.92 consensus, so the result was not just a tax-assisted surprise. (Financial Highlights; Consolidated Statements of Income)

Cash generation improved sharply, but government incentives are part of the explanation. Trailing-12-month free cash flow reached $6.534 billion versus $1.763 billion a year earlier, helped by $1.179 billion of CHIPS Act proceeds versus $260 million previously. The underlying operating result is still stronger, but the 271% free-cash-flow growth overstates the recurring improvement because those incentives are included in the company's non-GAAP measure. (Free cash flow reconciliation; Cash Flow statement)

Net read: a genuine earnings beat with improving semiconductor demand, not a clean all-organic cash-flow breakout. Revenue, operating profit and EPS all exceeded expectations, and the five-cent benefit does not erase the underlying upside. The main qualification is that part of the cash-flow acceleration came from CHIPS Act support, while stock repurchases fell 61% year over year to $27 million. (Shareholder returns; Cash Flow statement)

Read the original 8-K on SEC EDGAR ↗
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