Texas Instruments is scheduled to report its second-quarter financial results on July 23, 2026. The Dallas-based semiconductor giant is projected to post earnings per share of $1.83 on revenue of $3.8 billion, according to consensus estimates compiled by Bloomberg. This performance would represent a year-over-year decline from the $2.05 EPS and $4.53 billion in revenue reported for the same period in 2025.
Context — [why this matters now]
The semiconductor industry is navigating a complex recovery cycle following the 2024 inventory correction. Texas Instruments, as a bellwether for industrial and automotive demand, provides critical insight into broader economic health. The company's performance is closely tied to capital expenditure cycles in manufacturing and auto production schedules.
Previous earnings reports have set a cautious tone. For Q1 2026, Texas Instruments reported revenue of $3.68 billion, which fell short of analyst expectations and marked a 16% decline from the prior year. Management guidance for Q2 projected revenue between $3.65 billion and $3.95 billion, with EPS between $1.72 and $1.98.
The current macro backdrop features the Federal Funds Rate at 4.75%, creating headwinds for capital-intensive industrial sectors. The key catalyst for this earnings report is the potential stabilization of order patterns from automotive clients and factory automation customers after several quarters of inventory drawdowns.
Data — [what the numbers show]
Analyst consensus points to Q2 revenue of $3.8 billion, which would sit near the midpoint of company guidance. This figure compares to $4.53 billion in Q2 2025 and $3.68 billion in Q1 2026. The projected EPS of $1.83 represents a significant compression from the $2.05 reported one year ago.
The company's gross margin remains a critical metric, with analysts expecting 58.5% for the quarter. This compares to a peak of over 70% during the 2022 semiconductor boom and 60.1% in the year-ago quarter. Texas Instruments maintains a strong balance sheet with $8.9 billion in cash and short-term investments as of last quarter.
Inventory levels stood at $2.1 billion last quarter, down from $2.3 billion the previous quarter but still elevated relative to historical norms. The company's capital expenditure program continues with $5 billion allocated annually toward expanding its 300-millimeter wafer fabrication capacity.
Peer comparison shows the Philadelphia Semiconductor Index (SOX) has gained 12% year-to-date, outperforming the S&P 500's 8% gain. Texas Instruments shares have underperformed the sector with a 3% decline year-to-date versus Analog Devices' 5% gain and NXP Semiconductors' 7% advance.
Analysis — [what it means for markets / sectors / tickers]
Texas Instruments' results will directly impact semiconductor equipment suppliers like Applied Materials and Lam Research, which could see order volatility based on capex commentary. Analog chip peers including Analog Devices and NXP Semiconductors typically trade in sympathy with Texas Instruments' earnings results, with potential 2-4% moves depending on the guidance tone.
The automotive sector represents approximately 25% of Texas Instruments' revenue, making results particularly relevant for automakers and suppliers. Strong results could signal improved electronic component availability for electric vehicle production. Weak results might indicate ongoing production challenges or demand softness.
A key limitation to this analysis is that Texas Instruments' diverse customer base across industrial, automotive, and consumer markets makes it difficult to attribute weakness or strength to any single segment without detailed commentary. The company's significant exposure to China (approximately 45% of revenue) also creates geopolitical risk that may not be fully reflected in quarterly numbers.
Positioning data shows hedge funds have maintained a net short position in Texas Instruments options, suggesting professional traders are hedging against potential disappointment. Institutional ownership remains stable at 86% of shares outstanding, indicating long-term confidence in the company's manufacturing strategy.
Outlook — [what to watch next]
Investors should monitor management's Q3 revenue guidance, particularly whether it exceeds the current analyst consensus of $3.95 billion. Any commentary on inventory normalization across industrial customers will be scrutinized for signs of sustainable demand recovery.
The next Federal Open Market Committee meeting on August 13 will be critical for interest rate direction, affecting industrial capital expenditure decisions. Texas Instruments' own capital expenditure plans for 2027 will be watched for signals about long-term demand expectations.
Key technical levels include the 50-day moving average at $185.50, which has acted as resistance throughout 2026. A break above this level on strong earnings could signal renewed institutional interest. Support sits at the 200-day moving average of $172.30, a level that has held through recent market volatility.
Frequently Asked Questions
What time does Texas Instruments report earnings?
Texas Instruments typically releases its quarterly earnings report after market close, with the conference call scheduled for 3:30 PM Central Time. The July 23 report will follow this pattern, with investor materials posted to the company website approximately one hour before the call begins.
How does Texas Instruments' dividend yield compare to other semiconductor stocks?
Texas Instruments offers a dividend yield of 3.2%, significantly higher than the semiconductor sector average of 1.4%. The company has increased its dividend for 20 consecutive years, returning approximately 55% of free cash flow to shareholders through dividends in 2025.
What is the significance of Texas Instruments' analog chip business?
Analog chips represent approximately 80% of Texas Instruments' revenue and are essential components that bridge the physical and digital worlds. These chips manage power regulation, signal processing, and sensor interfaces in everything from factory robots to electric vehicles, making them economically sensitive indicators.
Bottom Line
Texas Instruments' guidance will signal industrial demand trends more clearly than its backward-looking quarterly results.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
