TI

Texas Instruments Incorporated

Q2 FY26Semiconductors and Semiconductor Equipment

Texas Instruments Incorporated Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹316

Market cap₹2.9L Cr

P/E55.5

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

2 of 4 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

The short version

- Q2 guidance anticipates revenue between $5 billion to $5.4 billion, about 8% sequential growth, slightly above seasonal norms. - Free cash flow per share growth is the key long-term metric for value creation (p.13).

From Texas Instruments Incorporated's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Moderate growth

Q2 guidance anticipates revenue between $5 billion to $5.4 billion, about 8% sequential growth, slightly above seasonal norms.
First half of 2026 shows mid-to-high teens percent revenue growth (15-20%), stronger than last year.
Long-term revenue growth driven by secular trends in industrial, data center, and automotive markets.
Industrial sector growing broadly across applications and geographies, with room to surpass 2022 peak levels.
Automotive steady at elevated levels; content growth anticipated with more features in vehicles.
Demand signals strong and broad-based across all sectors and customer sizes.

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Profitability & Margins

Free cash flow per share growth is the key long-term metric for value creation (p.13).
For 2026, expected CapEx is $2 billion to $3 billion to support growth and capacity expansion, particularly assembly/test (p.10).
Depreciation for 2026 is anticipated to be $2.2 to $2.4 billion; upward pressure continues in 2027 but at a slower rate (p.10).
Revenue growth for first half of 2026 is strong, around 17-18% YoY, stronger than last year, with a cautious view on sustainability (p.10).
Gross margin expected to grow modestly; incremental gross margin falls within 75%-85% after excluding depreciation (p.6,9).

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Capital Expenditure Plans

Capex planned

TI expects to spend $2 billion to $3 billion in capital expenditures for 2026.
A growing portion of the CapEx will fund Phase III investments, including both fab-side incremental capacity and assembly/test (AT) capacity to support growth.
The company is increasing internalization of back-end assembly and test to address bottlenecks in the market, investing to control this capability internally.
Long-term CapEx intensity is expected to be about 1.2x the revenue growth rate; for example, 5% revenue growth translates to 6% CapEx as a percentage of revenue.

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Fundraising & Capital Structure

The company has $14 billion of total debt outstanding with a weighted average coupon of 4%.
In the first quarter, $676 million was spent on capital expenditures, part of a planned $2 billion to $3 billion CapEx for 2026.
The company recently received over $500 million from CHIPS Act direct funding, part of up to $1.6 billion expected over several years.
No explicit mention was made of any new fundraising through debt or equity during the call or in the provided pages.

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Order Book & Pipeline

Order book rising

The company is in Phase III, actively modulating starts based on real-time daily consumption.
Inventory strategy depends on demand rates; parts have varied build times ranging from 3 to 9 months.
Inventory enables quick customer support during demand surges, evidenced by Q1 performance.
Inventory days target ranges from 150 to 250; currently at 209 and expected to shift lower during market upturns.
If demand remains strong, inventory will be depleted; if downturn occurs, inventory will build up.

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Frequently Asked Questions

What were Texas Instruments Incorporated Q2 FY26 results?

- Q2 guidance anticipates revenue between $5 billion to $5.4 billion, about 8% sequential growth, slightly above seasonal norms. - Free cash flow per share growth is the key long-term metric for value creation (p.13).

What is Texas Instruments Incorporated share price analysis?

Texas Instruments Incorporated currently shows a below-average growth signal. The stock trades at a P/E of 55.5 with a market cap of $287,544. Investors should review the full earnings analysis for detailed insights.

Is Texas Instruments Incorporated planning capital expenditure?

- TI expects to spend $2 billion to $3 billion in capital expenditures for 2026.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.