◆ Inside the Latest Quarter (Q2 2026)

Texas Instruments' June 2026 quarter was the one that made the recovery look like a trend rather than a bounce.

The numbers. Revenue of $5.46 billion, up 23% year over year and 13% sequentially, against consensus near $5.24 billion.¹ Gross profit was $3.35 billion — a 61.4% gross margin, up from 57.9% — and operating profit $2.31 billion at a 42.3% margin, against $1.56 billion a year earlier. Net income was $1.98 billion, up 53%, and diluted EPS $2.14, up 52% and above the high end of guidance.

Where the growth came from. Analog revenue was $4.37 billion, up 26%; Embedded Processing $788 million, up 16%; Other $310 million, down 2%.² Industrial demand grew more than 30% across all sectors and regions, automotive re-accelerated, and data centre revenue roughly doubled. That is broad-based in a way the 2024 trough was not — analog upturns tend to arrive one end market at a time, and this one did not.

The operating leverage is the story. Revenue rose 23% and operating profit rose 48%, because the fabs TI spent six years building were finally being filled. Research and development was flat at $535 million and selling and administrative flat at $490 million. This is what the capital cycle was supposed to produce, arriving on schedule.

Two forward items. Management guided third-quarter revenue to $5.65–6.15 billion, and confirmed 2026 capital expenditure of $2–3 billion — down from $4.55 billion in 2025 — declining to bias it toward the lower end. And after holding prices flat through the first half, TI began customer-by-customer price increases from the third quarter, concentrated in Analog and extending into 2027.

The shares fell after hours, on a guide that was above normal seasonality and below what a stock that had run hard all year expected. The number to watch is free cash flow per share, which is what management steers by and what an activist has been pressing on since 2024 — not revenue, and not the gross margin that gets the headlines.