Texas Instruments Inc. reported first‑quarter 2026 results, posting revenue of $4.83 billion, up 19% year‑over‑year, and earnings per share of $1.68, a 31% increase over the prior year’s $1.28. The company beat consensus estimates of $4.52 billion for revenue and $1.37 for EPS, delivering a $0.31 upside on both metrics.
Revenue growth was driven by the analog segment, which generated $3.92 billion, up 22% YoY, and the embedded‑processing segment, which earned $723 million, up 12%. Data‑center sales surged roughly 90% YoY, while industrial sales grew 30%, underscoring the company’s exposure to the AI infrastructure boom and the recovery of its core industrial markets.
Gross margin expanded to 58% of revenue, up from 56.9% a year ago, driven by higher factory loadings and the cost advantage of its 300 mm wafer capability. Operating profit rose 37% to $1.81 billion, and net income climbed 31% to $1.55 billion. Cash flow from operations reached $7.82 billion for the trailing 12 months, and free cash flow rose to $4.4 billion, reflecting the company’s strong cash‑generating capability.
Management raised its second‑quarter guidance, projecting revenue of $5.00 billion to $5.40 billion and EPS of $1.77 to $2.05, both above consensus estimates of $4.86 billion and $1.57. The company’s CEO, Haviv Ilan, said, “Revenue increased 9% sequentially and 19% from the same quarter a year ago with growth led by industrial and data center.” He added, “Our cash flow from operations of $7.8 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300 mm production.”
Texas Instruments also confirmed its acquisition of Silicon Labs, a deal that will enhance its global leadership in embedded wireless connectivity. The transaction is expected to close in the first half of 2027, adding complementary product lines and expanding the company’s presence in the IoT market.
Compared with the fourth quarter of 2025, when revenue was $4.4 billion and EPS was $1.27, the company’s first‑quarter performance represents a clear acceleration in both top‑line and profitability. The results reinforce Texas Instruments’ position as a leading analog and embedded‑processing supplier amid a growing data‑center and industrial demand cycle, while the raised guidance signals management confidence in sustained demand and the ability to convert inventory into sales as the cycle turns.
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