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.
| Metric | Q2 2026 | Q2 2025 | Change | Market 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 ↗