Texas Instruments reported second quarter FY'26 revenue of $5.46 billion, representing a 23% year-over-year increase, driven by a 26% surge in Analog revenue to $4.37 billion and 16% growth in Embedded Processing to $788 million. Diluted earnings per share reached $2.14, up 52% from $1.41 in the prior year period, benefiting from higher fab utilization and operational leverage.
Note: Texas Instruments's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.
Texas Instruments continues to scale its 300mm manufacturing footprint, supported by CHIPS Act direct funding incentives received for its new facilities in Sherman, Texas and Lehi, Utah. This capital investment strategy aims to transition internally produced analog chips to 300mm wafers, driving long-term structural cost advantages, lower unit manufacturing costs, and greater supply chain resiliency.
Below are key drivers of Texas Instruments's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for Texas Instruments at the top of the page.
Texas Instruments is a global semiconductor design and manufacturing company specializing in analog and embedded processing chips that manage power, process real-world signals, and deliver control across automotive, industrial, data center, and personal electronics markets.
Texas Instruments derives the majority of its valuation from its Analog semiconductor division, which generates higher gross margins and features long product lifecycles.
Texas Instruments holds the industry-leading market share in analog chips, maintaining a broad product portfolio of over 80,000 products that serve tens of thousands of global customers with long product lifespans and low obsolescence risk.
The company's investment in owned 300mm wafer manufacturing capability creates a durable cost advantage over competitors reliant on third-party foundries, enabling superior gross margins and consistent capital returns.
Increasing chip content per vehicle and automation across factory floors drive sustained long-term volume growth for analog and microcontroller components despite short-term cyclical fluctuations.
Texas Instruments is executing a multi-year strategy to expand internal manufacturing capacity with backing from US CHIPS Act grants and tax credits, improving operational efficiency and long-term cash flow generation.
