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Texas Instruments Posts Record Q2 as Shares Slip After Guidance

Management says unit-driven demand with initial price hikes signals a more durable revenue recovery.

Overview

  • The company reported record quarterly revenue of $5.46 billion and GAAP EPS of $2.14, beating Wall Street estimates.
  • Texas Instruments set third-quarter guidance above consensus with revenue of $5.65–$6.15 billion and EPS of $2.23–$2.57.
  • Management said growth is being driven mainly by unit demand, noted that data-center sales doubled year over year, and reported clearer strength in automotive and industrial markets.
  • Operational leverage pushed gross margin to 61% and operating profit to $2.3 billion, while trailing-12-month free cash flow rose to $6.5 billion and inventory days fell to 196.
  • Shares slipped about 5% in after-hours trading as investors took profits after a large year-to-date rally even as the company held a $2–3 billion capex range, maintained its long-running dividend policy, and kept the planned Silicon Labs deal on track to close in H1 2027.