Industrial and Automotive: Thirty-Three Percent EachWide moat
Texas Instruments (TXN) — moat facet
Two-thirds of the revenue is bought once, during a design cycle, and then repeats for a decade.
Two-thirds of the revenue comes from customers who design a part in and then buy it for a decade.
Industrial was 33% of TI's 2025 revenue and automotive another 33%.1 Both are markets where the purchasing decision is made once, during a design cycle, against qualification requirements — functional safety in automotive, long part-availability commitments in industrial — and then repeats until the end product is discontinued.
That produces the revenue characteristic TI's whole model depends on. There is no annual re-compete of the kind Qualcomm runs in handsets. A socket won in 2015 is still shipping, and a socket lost stays lost for just as long.
The sectors underneath are themselves diversified: industrial automation, aerospace and defence, energy infrastructure, building automation, medical, test and measurement; and in automotive, infotainment, driver assistance, body electronics, powertrain and chassis control.
The 2026 evidence is that both are working: industrial demand grew more than 30% year over year across all sectors and regions, and automotive re-accelerated.2
The exposure is that both are cyclical capital-goods markets, and they turned down together in 2023-24 while personal electronics did too.
Watch the industrial and automotive share of revenue. It is the part of the mix that pays for longevity.
Industrial and automotive were 33% of revenue each in 2025, and both re-accelerated in 2026 — a recovery in the cycle rather than a change in the mix.
Industrial and automotive customers design parts in once and reorder for a decade. Industrial leading the recovery shows that base restocking; automotive lagging is the one to watch.
Source: Futurum Group, TI Q2 FY2026 (Jul 2026) ↗- ReportedIndustrial was 33% of TI's 2025 revenue and automotive another 33%.Texas Instruments Incorporated, Form 10-K for the year ended 31 December 2025 (SEC, CIK 97476) — Item 1, Business. TI's two reportable segments are Analog and Embedded Processing, with remaining activities in Other; operations began in 1930 and it has design, manufacturing or sales operations in more than 30 countries. The product portfolio includes more than 80,000 products. TI states four sustainable competitive advantages: a strong foundation of manufacturing and technology, a broad portfolio of analog and embedded processing products, the reach of its market channels, and the diversity and longevity of its products, markets and customer positions, which in combination it describes as difficult to replicate. An unpackaged chip built on a 300mm wafer costs about 40% less than one built on a 200mm wafer; TI continued qualifying and ramping production at its newest 300mm fabs in Richardson and Sherman, Texas, and Lehi, Utah, supporting external foundry transfers and internal transfers from its legacy 150mm facilities, and expects to maintain sufficient internal capacity to meet the majority of its production needs, offering customers geopolitically dependable capacity. TI sells to over 100,000 customers, with about half of revenue derived from customers outside its largest 50; more than 80% of revenue was direct in 2025, including TI.com. End markets as a percentage of 2025 revenue: industrial 33%, automotive 33%, personal electronics 21%, data centre 9%, communications equipment 3%, and calculators about 1%. About 60% of revenue comes from customers headquartered outside the United States; revenue from end customers headquartered in China represented about 20% of revenue in 2025, while revenue from products shipped into China represented about 50%. The analog and embedded processing markets remain highly fragmented, with significant global competition from dozens of large and small companies including emerging companies, particularly in Asia. The company's stated objective is the growth of free cash flow per share over the long term. — FY2025 · publ. 2026-02-06 · source ↗
- ReportedThe 2026 evidence is that both are working: industrial demand grew more than 30% year over year across all sectors and regions, and automotive re-accelerated.Coverage of Texas Instruments' second-quarter 2026 results, July 2026 — revenue of $5.46 billion, up 23% year over year and 13% sequentially against consensus near $5.24 billion; net income of $1.98 billion, up 53%, and EPS of $2.14, up 52% and above the high end of guidance. By segment, Analog revenue was $4.37 billion (up 26%), Embedded Processing $788 million (up 16%) and Other $310 million (down 2%). Industrial revenue grew more than 30% year over year across all sectors and regions, automotive re-accelerated, and data centre revenue roughly doubled. Management guided third-quarter revenue to $5.65-6.15 billion and confirmed 2026 capital expenditure of $2-3 billion, declining to bias the range toward the lower end. After holding pricing flat through the first half, TI began executing customer-by-customer price increases from the third quarter, extending into the fourth quarter and into 2027, concentrated in Analog. Management has framed free cash flow per share of $8 or more as probable for 2026, having earlier suggested $12. The shares fell after hours. — Q2 2026 · publ. 2026-07-24 · source ↗