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FY2026 Q1
Improving
Texas Instruments Incorporated earnings call
Buzzberg read
Industrial revenue up over 30% YoY, still 15% below 2022 peak
Texas Instruments reported a strong Q1 2026 beat with 19% YoY revenue growth, driven by broad industrial recovery and 90% data center growth. Management guided Q2 above seasonal, and highlighted stable pricing with potential for H2 increases. The Silicon Labs acquisition was announced, and capacity investments are supporting share gains in analog. Q1 revenue $4.8B (+9% QoQ, +19% YoY), above guidance, with industrial up >30% and data center +90%.
Buzzberg read Industrial revenue up over 30% YoY, still 15% below 2022 peak Texas Instruments reported a strong Q1 2026 beat with 19% YoY revenue growth, driven by broad industrial recovery and 90% data center growth. Management guided Q2 above seasonal, and highlighted stable pricing with potential for H2 increases. The Silicon Labs acquisition was announced, and capacity investments are supporting share gains in analog. Q1 revenue $4.8B (+9% QoQ, +19% YoY), above guidance, with industrial up >30% and data center +90%. Read full analysisCollapse analysis
Texas Instruments reported a strong Q1 2026 beat with 19% YoY revenue growth, driven by broad industrial recovery and 90% data center growth. Management guided Q2 above seasonal, and highlighted stable pricing with potential for H2 increases. The Silicon Labs acquisition was announced, and capacity investments are supporting share gains in analog. Q1 revenue $4.8B (+9% QoQ, +19% YoY), above guidance, with industrial up >30% and data center +90%.
- Q2 guided $5.0-5.4B (above seasonal), EPS $1.77-2.05, reflecting continued strength in industrial and data center.
- Pricing stable in Q1 but may rise in H2 if demand persists; TI has capacity edge to support customers.
- Industrial still 15% below 2022 peak, offering further upside; auto flat near peak levels.
Revenue$4.825B+9% QoQ
EPS$1.68+32% QoQ
Gross margin58.01%Reported
Operating margin37.47%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
Data center revenue grew ~90% YoY, led by power portfolio
Pricing
Pricing stable in Q1, potential increases in H2 if demand holds
Show 3 more callouts
Capex
Capex guidance of $2-3B for 2026, backend investment rising
Inventory
Inventory down to 209 days, set to drain during upturn
M&A
Acquisition of Silicon Labs to close in H1 2027
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $4.825B | +9% QoQ |
| EPS | $1.68 | +32% QoQ |
| Gross margin | 58.01% | Reported |
| Operating margin | 37.47% | Reported |
| Free cash flow | $0.844B | -36% QoQ |
| Capex | $0.676B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $2B–$3B | $2.5B | Maintained |
| EPS | FY2026 Q2 | $1.77–$2.05 | $1.91 | Guided |
| Revenue | FY2026 Q2 | $5B–$5.4B | $5.2B | Guided |
AI, capex & demand read
Management read
Confident
Management expressed optimism about the recovery, highlighting broad-based industrial growth and data center strength, while maintaining a cautious stance on sustainability due to macro uncertainties.
Management AI read
Management highlighted data center as a secular growth market, with Q1 revenue growing about 90% year-over-year and over 25% sequentially. They emphasized their strength in power delivery for data centers, broad portfolio coverage, and unique supply position, expecting application-specific sockets to contribute more in the second half of 2026 and into 2027.
Investment and capacity
Management reiterated capex guidance of $2-3 billion for 2026, with increased investments in assembly and test (backend) to support growth. They noted they are well positioned with 300mm wafer capacity and can modulate starts in Phase 3, while also receiving CHIPS Act funding for new fabs.
all 5 named companies below
Companiesreturns since call
Supply chain
Supply chain
Haviv Alon
TI's acquisition of Silicon Labs signals consolidation in embedded wireless connectivity and will expand TI's portfolio with an established player.
Evidence
“we announced an agreement for TI to acquire Silicon Labs. This transaction enhances our global leadership in embedded wireless connectivity”
Supply chain
Haviv Alon
Pricing was stable in Q1 but may rise in H2 if demand sustains, as TI discusses new agreements with customers amid tightening OSAT capacity. — Industry-wide analog pricing could inflect upward, benefiting all analog suppliers, but TI's internal manufacturing gives it an edge in meeting demand without third-party constraints.
Evidence
“if demand continues to be strong and we are monitoring the market price and there is definitely at least an average price increase in the last several months across the analog market, I think it's likely that prices may go up in the second”
Supply chain
Haviv Alon
Data center revenue grew ~90% YoY, driven by broad portfolio and capacity to fill shortages from competitors. — TI is gaining share in data center power and signal chain, potentially displacing competitors on GPU system boards, which benefits NVDA/AMD by improving supply reliability.
Evidence
“we have seen cases where our customers needed help because they had supply shortages from their other suppliers, and we come in and solve the problem”
External signals
Supply-chain alpha · 3returns since call
Industrial revenue remains 15% below its 2022 peak despite 30% YoY growth, indicating further recovery potential.
Evidence
“we are still 15% lower than the peak that was back in 2022... there is a secular growth continuing in industrial”
Pricing was stable in Q1 but may rise in H2 if demand sustains, as TI discusses new agreements with customers amid tightening OSAT capacity.
Evidence
“if demand continues to be strong and we are monitoring the market price and there is definitely at least an average price increase in the last several months across the analog market, I think it's likely that prices may go up in the second…”
Data center revenue grew ~90% YoY, driven by broad portfolio and capacity to fill shortages from competitors.
Methodology & coverage
Management-only analysis. All 5 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.