AI Takeaway
Texas Instruments delivered a strong Q1 2026 with revenue of $4.83B (+18.6% YoY), operating income surging 36.6% to $1.81B, and operating cash flow nearly doubling to $1.52B, reflecting broad-based demand recovery across its analog and embedded processing segments.
Revenue
$4.83B
++18.58% YoY
EPS (Basic)
$1.69
++31.01% YoY
Gross Margin
58.0%
++1.17% YoY
Operating Income
$1.81B
++36.56% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue grew 18.6% YoY to $4.83B in Q1 2026 from $4.07B in Q1 2025, suggesting a meaningful cyclical recovery in semiconductor demand after a prolonged inventory correction. This top-line growth outpaced cost growth, driving significant operating leverage.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Gross margin improved 117 bps YoY to 58.0%, while operating margin expanded 493 bps to 37.5%, reflecting strong operating leverage as revenue scaled faster than costs. R&D and SG&A expenses each declined slightly (~1.5%) YoY, contributing to the margin improvement.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
Operating cash flow surged 79.0% YoY to $1.52B from $849M, demonstrating significantly improved cash generation quality alongside earnings growth. This improvement supports TI's capital return and manufacturing investment programs.
Source: Source: 10-Q Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockLong-term debt stands at $14.05B with a debt-to-equity ratio of approximately 1.05x, elevated compared to historical norms. Rising interest rates or a revenue downturn could pressure TI's ability to service this debt while maintaining its dividend and capital expenditure programs.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.68 versus the $1.38 analyst consensus — a +21.6% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.83B | $4.07B | +18.58% |
Cost of Revenue | $2.03B | $1.76B | +15.38% |
Gross Profit | $2.8B | $2.31B | +21.01% |
Operating Income | $1.81B | $1.32B | +36.56% |
Net Income | $1.54B | $1.18B | +31.04% |
EPS (Basic) | $1.69 | $1.29 | +31.01% |
EPS (Diluted) | $1.68 | $1.28 | +31.25% |
R&D Expense | $510M | $517M | -1.35% |
SG&A Expense | $464M | $472M | -1.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.39B | $33.76B | +1.88% |
Current Assets | $13.8B | $13.09B | +5.43% |
Total Liabilities | $17.61B | $17.35B | +1.52% |
Current Liabilities | $3.1B | $2.49B | +24.39% |
Stockholders' Equity | $16.78B | $16.41B | +2.27% |
Cash & Equivalents | $3.55B | $2.76B | +28.45% |
Long-Term Debt | $14.05B | $12.85B | +9.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.52B | $849M | +79.03% |
Investing Cash Flow | $-47M | $1.25B | -103.75% |
Financing Cash Flow | $-1.15B | $-2.54B | +54.75% |
Dividends Paid | $1.29B | $1.24B | +4.28% |
Share Buybacks | $158M | $653M | -75.80% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 58.0% | 56.8% | +1.17% |
Operating Margin | 37.5% | 32.5% | +4.93% |
Net Margin | 32.0% | — | — |
ROE | 9.2% | — | — |
ROA | 4.5% | — | — |
Current Ratio | $4.456 | — | — |
Debt to Equity | $1.05 | — | — |
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TI reported Q1 2026 diluted EPS of $1.68, up 31.2% from $1.28 in Q1 2025, and revenue of $4.83B, up 18.6% YoY. While consensus estimates are not included in the filing, the magnitude of growth across revenue, operating income, and cash flow suggests a strong quarter relative to typical analyst expectations for a semiconductor recovery.
The headline takeaways are: revenue grew 18.6% to $4.83B, operating margin expanded ~500 bps to 37.5%, and operating cash flow nearly doubled to $1.52B. These results point to a robust cyclical recovery in TI's core analog and embedded processing markets, with strong operating leverage amplifying top-line growth into outsized profit gains.
TI's revenue grew 18.6% YoY to $4.83B in Q1 2026, compared to $4.07B in Q1 2025. This acceleration likely reflects restocking and demand recovery in industrial and automotive end markets after a prolonged semiconductor inventory correction in 2023-2024.
TI's balance sheet shows $3.55B in cash, a strong current ratio of 4.46x, and stockholders' equity of $16.78B, indicating solid liquidity. However, long-term debt has grown to $14.05B (debt-to-equity of 1.05x) as TI funds its domestic fab expansion, which is a key leverage risk to monitor.
Based on the financial data, key risks include the high capital expenditure burden compressing free cash flow (investing cash flow swung to -$47M from +$1.25B), elevated long-term debt of $14.05B, and the cyclical nature of semiconductor demand which could reverse the current recovery. Share buybacks were also cut 75.8% YoY to $158M, reflecting capital allocation trade-offs.