TEXAS INSTRUMENTS INC
For the period ended Mar 31, 2026. Filed Apr 24, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 24, 2026
TXN$277.36-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-23.
0000097476-25-000060
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-24.
0000097476-26-000101
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 97 previous paragraphs and 78 current paragraphs.
40 unchanged; 30 reworded; 8 added; 22 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Semiconductor cycle
Current report
◦Our LFAB facility, which primarily supports our Embedded Processing business, was purchased as an operating fab and is continuing to ramp production, so we expect factory loadings to increase over time. As LFAB ramps, we expect Embedded to carry manufacturing costs that disproportionately benefit Embedded Processing operating profit as compared to Analog.
Current report
In first quarter, the overall analog and embedded semiconductor market recovery continued. While uncertainty related to broader macroeconomic dynamics remains, growth of semiconductor content in electronics has continued to drive demand for our products, particularly in the industrial, automotive and data center markets. We believe we are well positioned with inventory and capacity to support our customers with competitive lead times through the semiconductor cycle.
Current report
Acquisition of Silicon Labs
Current report
As announced on February 4, 2026, we have entered into a definitive agreement to acquire Silicon Labs for $231.00 per share in an all-cash transaction, representing a total enterprise value of approximately $7.5 billion. Under the terms of the agreement, Silicon Labs stockholders will receive $231.00 in cash for each share of Silicon Labs common stock they hold at the time of closing, which is currently expected in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions, including approval by Silicon Labs stockholders. We expect to fund the transaction with a combination of cash on hand and debt financing to be arranged prior to closing.
Current report
Acquisition charges were $17 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.
Current report
Net income was $1.55 billion compared with $1.18 billion. EPS was $1.68 compared with $1.28.
Current report
First quarter 2026 segment results
Removed paragraphs (22)
Previous report
Market cycle
Previous report
In 2020, we announced a multi-year plan to close our two remaining factories with 150mm production, which are more than 50 years old and located in Sherman and Dallas, Texas. Production is transitioning from these sites to our more advanced and cost-effective 300mm wafer fabrication facilities.
Previous report
We believe trade dynamics and geopolitics are disrupting and reshaping global supply chains and affecting customer order behavior. Our global manufacturing capabilities enable us to support our customers’ needs. The overall semiconductor market recovery is continuing, though at a slower pace than prior upturns, likely related to broader macroeconomic dynamics and overall uncertainty.
Previous report
U.S. legislative update
Previous report
On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). The OBBBA provides changes to U.S. federal tax law, including expensing of U.S. research expenditures and eligible capital expenditures, increasing the U.S. CHIPS and Science Act (CHIPS Act) investment tax credit (ITC) and changing other tax provisions. The effect of the new law results in a higher effective tax rate in the third quarter and full year 2025. For 2026 and beyond, we expect the effective tax rate to be lower than it would have been under prior tax law. Additionally, we expect tax-related cash payments to be lower for the next several years as a result of the changes.
Previous report
Restructuring charges/other was $85 million related to efforts to drive operational efficiencies to support our long-term strategy, including the planned closures of our two remaining factories with 150mm production.
Previous report
Operating profit was $1.66 billion, or 35.1% of revenue, compared with $1.55 billion, or 37.4% of revenue. This change was primarily due to higher revenue, partially offset by higher manufacturing costs.
Previous report
Net income was $1.36 billion in both periods. EPS was $1.48 compared with $1.47.
Previous report
Third quarter 2025 segment results
Previous report
Embedded Processing revenue increased due to higher demand, which was impacted by the macroeconomic factors discussed above. Operating profit was about even due to higher manufacturing costs and operating expenses, offset by higher revenue.
Previous report
Gross profit of $7.61 billion was up $831 million, or 12%, due to higher revenue. Our gross profit was also impacted by higher manufacturing costs associated with our planned capacity expansions, partially offset by reduced costs related to increased factory loadings. As a percentage of revenue, gross profit decreased to 57.4% from 58.3%.
Previous report
Operating expenses were $2.98 billion compared with $2.82 billion.
Previous report
Restructuring charges/other was $85 million related to efforts to drive operational efficiencies to support our long-term strategy, including the planned closures of our two remaining factories with 150mm production, compared with a credit of $124 million primarily due to a gain on the sale of a property during 2024.
Previous report
Interest and debt expense of $402 million increased $24 million.
Previous report
Our provision for income taxes was $500 million in both periods. This includes an increase in taxes from higher income before income taxes and changes in the effect of U.S. tax benefits, including the effect of OBBBA, offset by higher discrete tax benefits of $41 million, primarily related to our non-U.S. operations. Our effective tax rate, which includes discrete tax items, was 12% in both periods.
Previous report
Net income was $3.84 billion compared with $3.59 billion. EPS was $4.18 compared with $3.89.
Previous report
Year-to-date segment results
Previous report
Analog
Previous report
Embedded Processing
Previous report
Other
Previous report
Other revenue increased $106 million, and operating profit decreased $123 million.
Previous report
In September 2025, we announced we would increase our quarterly cash dividend by 4% to $1.42 per share, marking 22 consecutive years of dividend increases.
Reworded paragraphs (30)
Previous wording
(c)The reach of our market channels that gives access to more customers and more of their design projects, leading to the opportunity to sell more of our products into each design and gives us better insight and knowledge of customer needs.
Current wording
(c)The reach of our market channels that gives access to more customers and more of their design projects, leading to better insight and knowledge of customer needs and the opportunity to sell more of our products into each design.
Previous wording
The end markets for our products are industrial, automotive, personal electronics, enterprise systems and communications equipment. See our 2024 Form 10-K for more information, where we also report calculators and other.
Current wording
The markets for our products are industrial, automotive, data center, personal electronics and communications equipment. See our 2025 Form 10-K for more information.
Previous wording
The “semiconductor cycle” refers to the ebb and flow of supply and demand and the building and depleting of inventories. The semiconductor market historically has been characterized by periods of tight supply caused by strengthening demand and/or insufficient manufacturing capacity, followed by periods of surplus inventory caused by weakening demand and/or excess manufacturing capacity. These are typically referred to as upturns and downturns in the semiconductor cycle. Semiconductor cycles are affected by the significant time and money required to build and maintain semiconductor manufacturing facilities.
Current wording
The semiconductor cycle refers to the ebb and flow of supply and demand and the building and depleting of inventories. It has been characterized by periods of tight supply caused by strengthening demand and/or insufficient manufacturing capacity, followed by periods of surplus inventory caused by weakening demand and/or excess manufacturing capacity. These are typically referred to as upturns and downturns in the semiconductor cycle. Semiconductor cycles are affected by the significant time and money required to build and maintain semiconductor manufacturing facilities.
Previous wording
We continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity plan. We are now mostly through a six-year elevated capital expenditures cycle that, when completed, will uniquely position TI to deliver dependable, low-cost 300mm capacity, scalability of capital expenditures, including capacity modularity, and free cash flow per share growth across a range of market conditions.
Current wording
We continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity plan. We are nearing the end of a six-year elevated capital expenditures cycle that, when completed, will uniquely position TI to deliver dependable, low-cost 300mm capacity, scalability of capital expenditures, including capacity modularity, and free cash flow per share growth across a range of market conditions.
Previous wording
With our planned capacity expansions to support demand over time, we expect our internal sourcing to continue to increase. As our Lehi, Utah, manufacturing facility is in the early ramping stages, Embedded Processing is disproportionately impacted by costs associated with the site’s capacity expansion. We expect to continue to maintain sufficient internal manufacturing capacity to meet the majority of our production needs and to obtain manufacturing equipment to support new technology developments and revenue growth.
Current wording
With our planned capacity expansions to support demand over time, we expect our internal sourcing to continue to increase. We expect to continue to maintain sufficient internal manufacturing capacity to meet the majority of our production needs and to obtain manufacturing equipment to support new technology developments and revenue growth.
Previous wording
Our third quarter revenue was $4.74 billion, net income was $1.36 billion and earnings per share (EPS) were $1.48.
Current wording
Our first quarter revenue was $4.83 billion, net income was $1.55 billion and earnings per share (EPS) were $1.68.
Previous wording
Revenue increased 7% sequentially and 14% from the same quarter a year ago with growth across all end markets.
Current wording
Revenue increased 9% sequentially and 19% from the same quarter a year ago with growth led by industrial and data center.
Previous wording
Our cash flow from operations of $6.9 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $2.4 billion.
Current wording
Our cash flow from operations of $7.8 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $4.4 billion.
Previous wording
Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $4.8 billion in capital expenditures and returned $6.6 billion to shareholders.
Current wording
Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $4.1 billion in capital expenditures and returned $6.0 billion to shareholders.
Previous wording
Details of financial results – third quarter 2025 compared with third quarter 2024
Current wording
Details of financial results – first quarter 2026 compared with first quarter 2025
Previous wording
Revenue of $4.74 billion increased $591 million, or 14%, due to higher revenue from increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment, which were both impacted by the macroeconomic factors discussed above.
Current wording
Revenue of $4.83 billion increased $756 million, or 19%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment, which were both impacted by the macroeconomic factors discussed above.
Previous wording
Gross profit of $2.72 billion was up $249 million, or 10%, due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions. As a percentage of revenue, gross profit decreased to 57.4% from 59.6%.
Current wording
Gross profit of $2.80 billion was up $486 million, or 21%, primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions. As a percentage of revenue, gross profit increased to 58.0% from 56.8%.
Previous wording
Operating expenses (R&D and SG&A) were $975 million compared with $920 million.
Current wording
Operating expenses (R&D and SG&A) were $974 million compared with $989 million.
Previous wording
Operating profit was $4.55 billion, or 34.3% of revenue, compared with $4.09 billion, or 35.1% of revenue. This change was primarily due to higher revenue and associated gross profit, partially offset by higher operating expenses.
Current wording
Operating profit was $1.81 billion, or 37.5% of revenue, compared with $1.32 billion, or 32.5% of revenue. This change was primarily due to higher revenue and associated gross profit.
Previous wording
OI&E was $62 million of income compared with $131 million of income. This decrease was due to lower interest income.
Current wording
OI&E was $47 million of income compared with $80 million of income. This decrease was primarily due to lower interest income.
Previous wording
Interest and debt expense of $141 million increased $10 million. See Note 6 to the financial statements.
Current wording
Interest and debt expense of $141 million increased $13 million. See Note 6 to the financial statements.
Previous wording
Our provision for income taxes was $220 million compared with $192 million. This increase was primarily due to changes in the effect of U.S. tax benefits, including the effect of OBBBA, lower discrete tax benefits and higher income before income taxes. Our effective tax rate, which includes discrete tax items, was 14% compared with 12%.
Current wording
Our provision for income taxes was $169 million compared with $97 million. This increase was primarily due to higher income before income taxes. Our effective tax rate, which includes discrete tax items, was 10% compared with 8%.
Previous wording
Analog revenue increased in both product lines, led by Power, due to higher demand, which was impacted by the macroeconomic factors discussed above. Operating profit increased primarily due to higher revenue and associated gross profit, partially offset by higher operating expenses.
Current wording
Analog revenue increased in both product lines, led by Signal Chain, due to higher demand, which was impacted by the macroeconomic factors discussed above. Operating profit increased primarily due to higher revenue and associated gross profit.
Previous wording
Embedded Processing revenue increased due to higher demand, which was impacted by the macroeconomic factors discussed above. Operating profit decreased primarily due to higher manufacturing costs and operating expenses, partially offset by higher revenue.
Current wording
Embedded Processing revenue increased due to higher demand, which was impacted by the macroeconomic factors discussed above. Operating profit increased primarily due to higher revenue and associated gross profit.
Previous wording
Other (includes DLP® products, calculators and custom ASIC products)
Current wording
Other (includes DLP® products and calculators)
Previous wording
Other revenue increased $29 million, and operating profit decreased $60 million.
Current wording
Other revenue decreased $34 million, and operating profit decreased $30 million.
Previous wording
At the end of the third quarter of 2025, total cash (cash and cash equivalents plus short-term investments) was $5.19 billion, a decrease of $2.39 billion from the end of 2024.
Current wording
At the end of the first quarter of 2026, total cash (cash and cash equivalents plus short-term investments) was $5.10 billion, an increase of $222 million from the end of 2025.
Previous wording
Accounts receivable were $2.06 billion, an increase of $343 million compared with the end of 2024. Days sales outstanding were 39 for both the third quarter of 2025 and at the end of 2024.
Current wording
Accounts receivable were $2.25 billion, an increase of $282 million compared with the end of 2025. Days sales outstanding in the first quarter of 2026 were 42 compared with 40 at the end of 2025.
Previous wording
Inventory was $4.83 billion, an increase of $302 million from the end of 2024. Days of inventory for the third quarter of 2025 were 215 compared with 241 at the end of 2024, which reflects the continued execution of our inventory strategy. As our current inventory levels align with our objectives, we expect to moderate factory loadings accordingly.
Current wording
Inventory was $4.70 billion, a decrease of $109 million from the end of 2025. Days of inventory for the first quarter of 2026 were 209 compared with 222 at the end of 2025, which reflects the continued execution of our inventory strategy.
Previous wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments and access to debt markets. We also have a variable-rate, revolving credit facility. As of September 30, 2025, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first nine months of 2025 were $4.90 billion, an increase of $579 million from the year-ago period primarily due to higher net income and non-cash items, partially offset by higher cash used for working capital. Cash flows from operating activities for the first nine months of 2025 and 2024 includes cash benefits of $246 million and $532 million, respectively, from the CHIPS Act ITC used to reduce income taxes payable.
Current wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments and access to debt markets. We also have a variable-rate, revolving credit facility. As of March 31, 2026, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first three months of 2026 were $1.52 billion, an increase of $671 million from the year-ago period due to higher net income and non-cash items, as well as lower cash used for working capital.
Previous wording
Investing activities for the first nine months of 2025 used $763 million compared with $3.82 billion in the year-ago period. Capital expenditures were $3.63 billion in both periods and were primarily for semiconductor manufacturing equipment and facilities. For the first nine months of 2025, we received proceeds of $335 million from CHIPS Act incentives, including $75 million in direct funding. Short-term investments provided cash of $2.55 billion compared with $346 million of cash used in the year-ago period.
Current wording
Investing activities for the first three months of 2026 used $47 million compared with $1.25 billion of cash provided in the year-ago period. Capital expenditures were $676 million compared with $1.12 billion in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods. U.S. CHIPS and Science Act (CHIPS Act) incentives provided cash proceeds of $555 million of direct funding compared with $260 million related to the investment tax credit (ITC) in the year-ago period. Short-term investments provided cash of $108 million compared with $2.16 billion in the year-ago period.
Previous wording
We are now mostly through a six-year elevated capital expenditures cycle, and consistent with our capital management strategy, we are currently evaluating our capital expenditure levels to determine if they will remain at elevated levels in 2026 and beyond, dependent on revenue and growth expectations. We expect to continue benefiting from the CHIPS Act, including the 25% ITC on qualifying manufacturing investments that increases to 35% for assets placed in service after December 31, 2025, and direct funding of up to $1.6 billion for our three large-scale 300mm wafer fabs located in Sherman, Texas, and Lehi, Utah.
Current wording
We are nearing the end of our six-year elevated capital expenditures cycle, and consistent with our capital management strategy, we are expecting to spend about $2 billion to $3 billion in 2026. Beyond 2026, capital expenditures will be dependent on revenue and growth expectations. We expect to continue benefiting from the CHIPS Act. This includes the 35% ITC on qualifying manufacturing investments as well as direct funding of up to $1.6 billion, of which we have received $630 million, for our three large-scale 300mm wafer fabs located in Sherman, Texas, and Lehi, Utah.
Previous wording
Financing activities for the first nine months of 2025 used $4.03 billion compared with $879 million in the year-ago period. We received net proceeds of $1.20 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $750 million. In the year-ago period, we received net proceeds of $2.98 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $300 million. Dividends paid were $3.71 billion compared with $3.56 billion in the year-ago period, reflecting an increased dividend rate. We used $1.07 billion to repurchase 6.1 million shares of our common stock compared with $392 million to repurchase 2.0 million shares in the year-ago period. Employee exercises of stock options provided cash proceeds of $358 million compared with $430 million in the year-ago period.
Current wording
Financing activities for the first three months of 2026 used $1.15 billion compared with $2.54 billion in the year-ago period. We retired maturing debt of $750 million in the year-ago period. Dividends paid were $1.29 billion compared with $1.24 billion in the year-ago period, reflecting an increased dividend rate. We used $158 million to repurchase 0.8 million shares of our common stock compared with $653 million to repurchase 3.5 million shares in the year-ago period. Employee exercises of stock options provided cash proceeds of $309 million compared with $118 million in the year-ago period.
Previous wording
We had $3.31 billion of cash and cash equivalents and $1.88 billion of short-term investments as of September 30, 2025. We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.
Current wording
We had $3.55 billion of cash and cash equivalents and $1.55 billion of short-term investments as of March 31, 2026. We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.
Previous wording
Includes cash benefits of $302 million and $532 million from the CHIPS Act ITC used to reduce income taxes payable for the twelve months ended September 30, 2025 and 2024, respectively.
Current wording
Includes cash benefits of $335 million and $588 million from the CHIPS Act ITC used to reduce income taxes payable for the twelve months ended March 31, 2026 and 2025, respectively.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Analog revenue increased in both product lines, led by Signal Chain, due to higher demand, which was impacted by the macroeconomic factors discussed above. Operating profit increased primarily due to higher revenue, partially offset by higher manufacturing costs and operating expenses.
Previous report — wording carried elsewhere
Details of financial results – first nine months of 2025 compared with first nine months of 2024
Previous report — wording carried elsewhere
Revenue of $13.26 billion increased $1.63 billion, or 14%, due to higher revenue from increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment, which were both impacted by the macroeconomic factors discussed above.
Previous report — wording carried elsewhere
OI&E was $190 million of income compared with $384 million of income. This decrease was due to lower interest income.
Previous report — wording carried elsewhere
Our segment results compared with the year-ago period are as follows: