TXN · Q2 FY2026
TEXAS INSTRUMENTS INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $5.46B | $4.45B (yr ago) | Beat |
| EPS | $2.14 | $1.41 (yr ago) | Beat |
| Free Cash Flow | $2.19B | $0.56B (yr ago) | Beat |
| Gross Margin | 61.4% | 57.9% (yr ago) | Beat |
| Operating Margin | 42.3% | 35.1% (yr ago) | Beat |
What changed
Revenue rose 23% year over year to $5.46 billion, while higher factory utilization helped gross margin expand 3.5 percentage points and operating margin expand 7.2 points. Standard free cash flow, calculated as operating cash flow less capital expenditures, increased to $2.19 billion as operating cash flow strengthened and quarterly capital spending declined.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We establish a $215 base-case fair value: the recovery is materially stronger, but the current price already capitalizes a substantial portion of normalized earnings improvement.