TEXAS INSTRUMENTS INC
For the period ended Sep 30, 2026. Filed Oct 23, 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.
Sep 30, 2026 · Filed Oct 23, 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 2026-06-30; filed 2026-07-24.
0000097476-26-000152
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-23.
0000097476-26-000169
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 102 current paragraphs.
56 unchanged; 35 reworded; 11 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 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 (11)
Current report
Macroeconomic factors
Current report
During the quarter, we saw broad demand, with revenue growth across all end markets and regions. Secular growth of semiconductor content is continuing alongside a strong cyclical recovery. We are working closely with our customers to support them during this time of increased demand. We are executing to our long-term manufacturing plan, and our investments have positioned us to ramp our factories to support revenue growth.
Current report
Restructuring charges/other in the year-ago period was $85 million related to efforts to drive operational efficiencies to support our long-term strategy, including the closure of our remaining 150mm production.
Current report
Net income was $2.43 billion compared with $1.36 billion. EPS was $2.62 compared with $1.48.
Current report
Third quarter 2026 segment results
Current report
*Includes Acquisition charges and Restructuring charges/other
Current report
Operating expenses were $3.01 billion compared with $2.98 billion.
Current report
Restructuring charges/other in the year-ago period was $85 million related to efforts to drive operational efficiencies to support our long-term strategy, including the closure of our remaining 150mm production.
Current report
Net income was $5.95 billion compared with $3.84 billion. EPS was $6.44 compared with $4.18.
Current report
*Includes Acquisition charges and Restructuring charges/other
Current report
In September 2026, we announced we would increase our quarterly cash dividend by 7% to $1.52 per share, marking 23 consecutive years of dividend increases.
Removed paragraphs (6)
Previous report
Net income was $1.98 billion compared with $1.30 billion. EPS was $2.14 compared with $1.41.
Previous report
Second quarter 2026 segment results
Previous report
*Includes Acquisition charges
Previous report
Operating expenses were $2.00 billion in both periods.
Previous report
Net income was $3.53 billion compared with $2.47 billion. EPS was $3.82 compared with $2.69.
Previous report
*Includes Acquisition charges
Reworded paragraphs (35)
Previous 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.
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. We refer to growth in the amount of semiconductor content in electronics as secular growth.
Previous wording
Our second quarter revenue was $5.46 billion, net income was $1.98 billion and earnings per share (EPS) were $2.14.
Current wording
Our third quarter revenue was $6.06 billion, net income was $2.43 billion and earnings per share (EPS) were $2.62.
Previous wording
Revenue increased 13% sequentially and 23% from the same quarter a year ago with broad growth led by industrial, data center and automotive.
Current wording
Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center.
Previous wording
Our cash flow from operations of $8.7 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 $6.5 billion.
Current wording
Our cash flow from operations of $9.9 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 $8.4 billion.
Previous wording
Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $3.3 billion in capital expenditures and returned $5.8 billion to shareholders.
Current wording
Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.8 billion to shareholders.
Previous wording
Details of financial results – second quarter 2026 compared with second quarter 2025
Current wording
Details of financial results – third quarter 2026 compared with third quarter 2025
Previous wording
Revenue of $10.29 billion increased $1.77 billion, or 21%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment.
Current wording
Revenue of $6.06 billion increased $1.31 billion, or 28%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment.
Previous wording
Gross profit of $3.35 billion was up $777 million, or 30%, 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 61.4% from 57.9%.
Current wording
Gross profit of $3.89 billion was up $1.16 billion, or 43%, primarily due to higher revenue. As a percentage of revenue, gross profit increased to 64.2% from 57.4%.
Previous wording
Operating expenses (R&D and SG&A) were $1.03 billion compared with $1.01 billion.
Current wording
Operating expenses (R&D and SG&A) were $1.01 billion compared with $975 million.
Previous wording
Acquisition charges were $17 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.
Current wording
Acquisition charges were $7 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.
Previous wording
Operating profit was $2.31 billion, or 42.3% of revenue, compared with $1.56 billion, or 35.1% of revenue. This change was primarily due to higher revenue and associated gross profit.
Current wording
Operating profit was $2.87 billion, or 47.5% of revenue, compared with $1.66 billion, or 35.1% of revenue. This change was primarily due to higher revenue and associated gross profit.
Previous wording
OI&E was $69 million of income compared with $48 million of income. This increase was primarily due to higher interest income.
Current wording
OI&E was $72 million of income compared with $62 million of income. This increase was primarily due to higher interest income.
Previous wording
Interest and debt expense of $141 million increased $8 million. See Note 6 to the financial statements.
Current wording
Interest and debt expense was $141 million in both periods. See Note 6 to the financial statements.
Previous wording
Our provision for income taxes was $427 million compared with $280 million. This increase was primarily due to higher income before income taxes. Our effective tax rate, which includes discrete tax items, was 11% compared with 10%.
Current wording
Our provision for income taxes was $380 million compared with $220 million. This increase was primarily due to higher income before income taxes. Our effective tax rate, which includes discrete tax items, was 14% in both periods.
Previous wording
Analog revenue increased in both product lines, led by Signal Chain, due to higher demand. Operating profit increased due to higher revenue and associated gross profit.
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. Operating profit increased primarily due to higher revenue and associated gross profit.
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 revenue decreased $7 million, and operating profit decreased $3 million.
Current wording
Other revenue decreased $18 million, and operating profit increased $73 million.
Previous wording
Details of financial results – first six months of 2026 compared with first six months of 2025
Current wording
Details of financial results – first nine months of 2026 compared with first nine months of 2025
Previous wording
Revenue of $5.46 billion increased $1.02 billion, or 23%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment.
Current wording
Revenue of $16.34 billion increased $3.08 billion, or 23%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment.
Previous wording
Gross profit of $6.15 billion was up $1.26 billion, or 26%, 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 59.8% from 57.4%.
Current wording
Gross profit of $10.04 billion was up $2.43 billion, or 32%, 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 61.4% from 57.4%.
Previous wording
Acquisition charges were $34 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.
Current wording
Acquisition charges were $41 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.
Previous wording
Operating profit was $4.12 billion, or 40.0% of revenue, compared with $2.89 billion, or 33.9% of revenue. This change was due to higher revenue and associated gross profit.
Current wording
Operating profit was $6.99 billion, or 42.8% of revenue, compared with $4.55 billion, or 34.3% of revenue. This change was primarily due to higher revenue and associated gross profit.
Previous wording
OI&E was $116 million of income compared with $128 million of income. This decrease was primarily due to lower interest income.
Current wording
OI&E was $188 million of income compared with $190 million of income.
Previous wording
Interest and debt expense of $282 million increased $21 million.
Current wording
Interest and debt expense of $423 million increased $21 million.
Previous wording
Our provision for income taxes was $258 million compared with $183 million. This increase was primarily due to higher income before income taxes, partially offset by higher discrete tax benefits of $35 million, related to stock-based compensation. Our effective tax rate, which includes discrete tax items, was 12% in both periods.
Current wording
Our provision for income taxes was $807 million compared with $500 million. This increase was primarily due to higher income before income taxes. Our effective tax rate, which includes discrete tax items, was 12% in both periods.
Previous wording
Analog revenue increased in both product lines, led by Signal Chain, due to higher demand. Operating profit increased due to higher revenue and associated gross profit.
Current wording
Analog revenue increased in both product lines, led by Signal Chain, due to higher demand. Operating profit increased primarily due to higher revenue and associated gross profit.
Previous wording
Other revenue decreased $41 million, and operating profit decreased $33 million.
Current wording
Other revenue decreased $59 million, and operating profit increased $40 million.
Previous wording
At the end of the second quarter of 2026, total cash (cash and cash equivalents plus short-term investments) was $7.00 billion, an increase of $2.12 billion from the end of 2025.
Current wording
At the end of the third quarter of 2026, total cash (cash and cash equivalents plus short-term investments) was $8.14 billion, an increase of $3.26 billion from the end of 2025.
Previous wording
Accounts receivable were $2.52 billion, an increase of $557 million compared with the end of 2025. Days sales outstanding in the second quarter of 2026 were 42 compared with 40 at the end of 2025.
Current wording
Accounts receivable were $2.62 billion, an increase of $657 million compared with the end of 2025. Days sales outstanding in the third quarter of 2026 were 39 compared with 40 at the end of 2025.
Previous wording
Inventory was $4.61 billion, a decrease of $199 million from the end of 2025. Days of inventory for the second quarter of 2026 were 196 compared with 222 at the end of 2025, which reflects the continued execution of our inventory strategy.
Current wording
Inventory was $4.67 billion, a decrease of $132 million from the end of 2025. Days of inventory for the third quarter of 2026 were 194 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 June 30, 2026, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first six months of 2026 were $4.22 billion, an increase of $1.51 billion from the year-ago period due to higher net income and non-cash items, as well as lower cash used for working capital. Cash flows from operating activities for the first six months of 2026 and 2025 include cash benefits of $301 million and $203 million, respectively, from the U.S. CHIPS and Science Act (CHIPS Act) investment tax credit (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 September 30, 2026, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first nine months of 2026 were $7.64 billion, an increase of $2.74 billion from the year-ago period due to higher net income and non-cash items, as well as lower cash used for working capital. Cash flows from operating activities for the first nine months of 2026 and 2025 include cash benefits of $380 million and $246 million, respectively, from the U.S. CHIPS and Science Act (CHIPS Act) investment tax credit (ITC) used to reduce income taxes payable.
Previous wording
Investing activities for the first six months of 2026 used $1.75 billion compared with $82 million in the year-ago period. Capital expenditures were $1.19 billion compared with $2.43 billion in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods. In 2026, CHIPS Act incentives provided cash proceeds of $1.10 billion compared with $260 million in the year-ago period. Short-term investments used cash of $1.66 billion compared with $2.10 billion of cash provided in the year-ago period.
Current wording
Investing activities for the first nine months of 2026 used $2.74 billion compared with $763 million in the year-ago period. Capital expenditures were $1.65 billion compared with $3.63 billion in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods. In 2026, CHIPS Act incentives provided cash proceeds of $1.10 billion compared with $335 million in the year-ago period. Short-term investments used cash of $2.23 billion compared with $2.55 billion of cash provided in the year-ago period.
Previous wording
Financing activities for the first six months of 2026 used $2.04 billion compared with $2.78 billion 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. Dividends paid were $2.59 billion compared with $2.47 billion in the year-ago period, reflecting an increased dividend rate. We used $185 million to repurchase 0.9 million shares of our common stock compared with $955 million to repurchase 5.4 million shares in the year-ago period. Employee exercises of stock options provided cash proceeds of $754 million compared with $233 million in the year-ago period.
Current wording
Financing activities for the first nine months of 2026 used $3.92 billion compared with $4.03 billion in the year-ago period. We retired maturing debt of $500 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. Dividends paid were $3.88 billion compared with $3.71 billion in the year-ago period, reflecting an increased dividend rate. We used $233 million to repurchase 1.1 million shares of our common stock compared with $1.07 billion to repurchase 6.1 million shares in the year-ago period. Employee exercises of stock options provided cash proceeds of $770 million compared with $358 million in the year-ago period.
Previous wording
We had $3.66 billion of cash and cash equivalents and $3.34 billion of short-term investments as of June 30, 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.
Current wording
We had $4.21 billion of cash and cash equivalents and $3.93 billion of short-term investments as of September 30, 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 $433 million and $479 million from the CHIPS Act ITC used to reduce income taxes payable for the twelve months ended June 30, 2026 and 2025, respectively.
Current wording
*Includes cash benefits of $469 million and $302 million from the CHIPS Act ITC used to reduce income taxes payable for the twelve months ended September 30, 2026 and 2025, respectively.