Raising Prices AgainNarrow moat
Texas Instruments (TXN) — moat facet
Held flat through the first half of 2026, then raised customer by customer — the lever that needs no additional wafer.
After holding prices flat through the first half of 2026, TI started raising them — customer by customer, concentrated in Analog.
The company held pricing flat through the first half and began executing increases from the third quarter, extending into the fourth and into 2027, with the increases concentrated in the Analog segment.1 Reports describe it as the third such move in six months across the industry, with Chinese analog manufacturers following.2
This matters because price is the second lever after volume and the only one that requires no additional wafer. Gross margin was 57.0% in 2025 and reached 61.4% in the June 2026 quarter on volume alone; price increases land on top of that.34
It also says something about the customer base. A company with more than 100,000 customers and no concentration can raise prices customer by customer without a negotiation that matters, which a company with three customers above 10% cannot.5
The constraint is competitive rather than commercial. Prices can be raised where a Chinese alternative does not exist and cannot be where one does, which is why the increases are concentrated in Analog rather than spread across the commodity end.
Watch gross margin against the China shipment share. The first tells you the increases are sticking; the second tells you where they cannot be applied.
After holding prices flat through the first half of 2026, TI began customer-by-customer increases from the third quarter, concentrated in Analog and extending into 2027. Pricing power that was dormant through the downturn is being exercised again.
TI is raising prices customer by customer from the third quarter, mostly in Analog. Sequential growth continuing once the increases land would show customers accepting them.
Source: Futurum Group, TI Q2 FY2026 (Jul 2026) ↗- ReportedThe company held pricing flat through the first half and began executing increases from the third quarter, extending into the fourth and into 2027, with the increases concentrated in the Analog segment.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 ↗
- ReportedThe company held pricing flat through the first half and began executing increases from the third quarter, extending into the fourth and into 2027, with the increases concentrated in the Analog segment. Reports describe it as the third such move in six months across the industry, with Chinese analog manufacturers following.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 ↗
- ReportedGross margin was 57.0% in 2025 and reached 61.4% in the June 2026 quarter on volume alone; price increases land on top of that.Texas Instruments Incorporated, Form 10-Q for the quarter ended 30 June 2026 (SEC, CIK 97476). Revenue $5,463M against $4,448M a year earlier, and $10,288M for the six months against $8,517M; cost of revenue $2,111M; gross profit $3,352M against $2,575M — a 61.4% gross margin against 57.9%; research and development $535M against $527M; selling, general and administrative $490M against $485M; acquisition charges $17M; operating profit $2,310M against $1,563M. Income before income taxes $2,238M; provision for income taxes $258M; net income $1,980M against $1,295M. Basic EPS $2.16 and diluted EPS $2.14, against $1.42 and $1.41, on 920 million diluted shares. — Q2 2026 · publ. 2026-07-24 · source ↗
- ReportedGross margin was 57.0% in 2025 and reached 61.4% in the June 2026 quarter on volume alone; price increases land on top of that.Texas Instruments Incorporated, Form 10-Q for the quarter ended 30 June 2026 (SEC, CIK 97476). Revenue $5,463M against $4,448M a year earlier, and $10,288M for the six months against $8,517M; cost of revenue $2,111M; gross profit $3,352M against $2,575M — a 61.4% gross margin against 57.9%; research and development $535M against $527M; selling, general and administrative $490M against $485M; acquisition charges $17M; operating profit $2,310M against $1,563M. Income before income taxes $2,238M; provision for income taxes $258M; net income $1,980M against $1,295M. Basic EPS $2.16 and diluted EPS $2.14, against $1.42 and $1.41, on 920 million diluted shares. — Q2 2026 · publ. 2026-07-24 · source ↗
- ReportedA company with more than 100,000 customers and no concentration can raise prices customer by customer without a negotiation that matters, which a company with three customers above 10% cannot.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 ↗