TI reports first quarter 2026 financial results and shareholder returns
Conference call at 3:30 p.m. Central time today on ti.com/ir
DALLAS, April 22, 2026 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported first quarter revenue of $4.83 billion, net income of $1.55 billion and earnings per share of $1.68. Earnings per share included a 5-cent benefit that was not in the company's original guidance.
Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.
Earnings summary
(In millions, except per-share amounts)
Q1 2026
Q1 2025
Change
Revenue
$
4,825
$
4,069
19 %
Operating profit
$
1,808
$
1,324
37 %
Net income
$
1,545
$
1,179
31 %
Earnings per share
$
1.68
$
1.28
31 %
Cash generation
Trailing 12 Months
(In millions)
Q1 2026
Q1 2026
Q1 2025
Change
Cash flow from operations
$
1,520
$
7,824
$
6,150
27 %
Free cash flow
$
1,399
$
4,351
$
1,715
154 %
Free cash flow % of revenue
23.6 %
10.7 %
Cash return
Trailing 12 Months
(In millions)
Q1 2026
Q1 2026
Q1 2025
Change
Dividends paid
$
1,291
$
5,052
$
4,850
4 %
Stock repurchases
$
158
$
982
$
1,579
(38) %
Total cash returned
$
1,449
$
6,034
$
6,429
(6) %
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
For Three Months Ended
March 31,
(In millions, except per-share amounts)
2026
2025
Revenue
$
4,825
$
4,069
Cost of revenue (COR)
2,026
1,756
Gross profit
2,799
2,313
Research and development (R&D)
510
517
Selling, general and administrative (SG&A)
464
472
Acquisition charges
17
—
Operating profit
1,808
1,324
Other income (expense), net (OI&E)
47
80
Interest and debt expense
141
128
Income before income taxes
1,714
1,276
Provision for income taxes
169
97
Net income
$
1,545
$
1,179
Diluted earnings per common share
$
1.68
$
1.28
Average shares outstanding:
Basic
909
910
Diluted
914
916
Cash dividends declared per common share
$
1.42
$
1.36
Supplemental Information
(Quarterly, except as noted)
Provision for income taxes is based on the following:
Operating taxes (calculated using the estimated annual effective tax rate)
$
229
$
166
Discrete tax items
(60)
(69)
Provision for income taxes (effective taxes)
$
169
$
97
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted
EPS is calculated using the following:
Net income
$
1,545
$
1,179
Income allocated to RSUs
(9)
(6)
Income allocated to common stock for diluted EPS
$
1,536
$
1,173
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
(In millions, except par value)
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
3,549
$
2,763
Short-term investments
1,554
2,242
Accounts receivable, net of allowances of ($32) and ($16)
2,245
1,860
Raw materials
463
393
Work in process
2,355
2,370
Finished goods
1,877
1,924
Inventories
4,695
4,687
Prepaid expenses and other current assets
1,753
1,534
Total current assets
13,796
13,086
Property, plant and equipment at cost
17,870
16,036
Accumulated depreciation
(5,725)
(4,225)
Property, plant and equipment
12,145
11,811
Goodwill
4,330
4,362
Deferred tax assets
973
1,030
Capitalized software licenses
323
263
Overfunded retirement plans
321
240
Other long-term assets
2,505
2,965
Total assets
$
34,393
$
33,757
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt
$
1,149
$
—
Accounts payable
638
866
Accrued compensation
389
418
Income taxes payable
138
284
Accrued expenses and other liabilities
782
921
Total current liabilities
3,096
2,489
Long-term debt
12,901
12,848
Underfunded retirement plans
121
115
Deferred tax liabilities
63
56
Other long-term liabilities
1,434
1,843
Total liabilities
17,615
17,351
Stockholders' equity:
Preferred stock, $25 par value. Shares authorized – 10; none issued
—
—
Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741
1,741
1,741
Paid-in capital
4,722
4,058
Retained earnings
52,483
52,196
Treasury common stock at cost
Shares: March 31, 2026 – 831; March 31, 2025 – 832
(42,084)
(41,442)
Accumulated other comprehensive income (loss), net of taxes (AOCI)
(84)
(147)
Total stockholders' equity
16,778
16,406
Total liabilities and stockholders' equity
$
34,393
$
33,757
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For Three Months Ended
March 31,
(In millions)
2026
2025
Cash flows from operating activities
Net income
$
1,545
$
1,179
Adjustments to net income:
Depreciation
541
424
Amortization of capitalized software
21
20
Stock compensation
109
116
Gains on sales of assets
(5)
—
Deferred taxes
(4)
(87)
Increase (decrease) from changes in:
Accounts receivable
(282)
(141)
Inventories
109
(160)
Prepaid expenses and other current assets
(9)
(7)
Accounts payable and accrued expenses
(125)
(121)
Accrued compensation
(447)
(427)
Income taxes payable
130
132
Changes in funded status of retirement plans
4
(9)
Other
(67)
(70)
Cash flows from operating activities
1,520
849
Cash flows from investing activities
Capital expenditures
(676)
(1,123)
Proceeds from CHIPS Act incentives
555
260
Proceeds from asset sales
5
—
Purchases of short-term investments
(935)
(647)
Proceeds from short-term investments
1,043
2,807
Other
(39)
(44)
Cash flows from investing activities
(47)
1,253
Cash flows from financing activities
Repayment of debt
—
(750)
Dividends paid
(1,291)
(1,238)
Stock repurchases
(158)
(653)
Proceeds from common stock transactions
309
118
Other
(9)
(16)
Cash flows from financing activities
(1,149)
(2,539)
Net change in cash and cash equivalents
324
(437)
Cash and cash equivalents at beginning of period
3,225
3,200
Cash and cash equivalents at end of period
$
3,549
$
2,763
Supplemental cash flow information
Investment tax credit (ITC) used to reduce income taxes payable
$
—
$
—
Proceeds from CHIPS Act incentives
555
260
Total cash benefit related to the CHIPS Act
$
555
$
260
Segment results
(In millions)
Q1 2026
Q1 2025
Change
Analog:
Revenue
$
3,924
$
3,210
22 %
Operating profit
$
1,638
$
1,206
36 %
Embedded Processing:
Revenue
$
723
$
647
12 %
Operating profit
$
122
$
40
205 %
Other:
Revenue
$
178
$
212
(16) %
Operating profit *
$
48
$
78
(38) %
* Includes Acquisition charges
Non-GAAP financial information
This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.
We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.
Reconciliation to the most directly comparable GAAP measures is provided in the table below.
For Three
Months
Ended
March 31,
For 12
Months
Ended
March 31,
(In millions)
2026
2026
2025
Change
Cash flow from operations (GAAP) *
$
1,520
$
7,824
$
6,150
27 %
Capital expenditures
(676)
(4,103)
(4,695)
Proceeds from CHIPS Act incentives
555
630
260
Free cash flow (non-GAAP)
$
1,399
$
4,351
$
1,715
154 %
Revenue
$
18,438
$
16,049
Cash flow from operations as a percentage of revenue (GAAP)
42.4 %
38.3 %
Free cash flow as a percentage of revenue (non-GAAP)
23.6 %
10.7 %
* 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.
This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items.
Notice regarding forward-looking statements
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:
For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of TI's most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
TXN-G
SOURCE Texas Instruments Incorporated