HighGravityData

Texas Instruments — Apr 22, 2026 release

Fiscal 2026 first-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000097476-26-000097
Open on SEC.gov ↗
Showing in the filing
Revenue
“$5.00 billion to $5.40 billion”
Period
Q2 FY2026
Measure
GAAP-tied
Source
Prose
All guidance in this release · 2
Revenue for Q2 FY2026
“$5.00 billion to $5.40 billion”
Earnings per share for Q2 FY2026
“$1.77 and $2.05”
Exhibit 99.1 · full document
Exhibit 99 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) – 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: • "Revenue increased 9% sequentially and 19% from the same quarter a year ago with growth led by industrial and data center. • "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. • "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 owners. • "TI's second quarter outlook is for revenue in the range of $5.00 billion to $5.40 billion and earnings per share between $1.77 and $2.05." 1      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) % 2      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  3      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  4      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  5      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   6      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. 7      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: • Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies; • Our ability to compete in products and prices in an intensely competitive industry; • Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts; • Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments; • Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties; • Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings; • Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity; • Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology; • Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession; • Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts; • Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors; • Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment; • Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability; • Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets; • Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims; • Our ability to make principal and interest payments on our debt when due; • Instability in the global credit and financial markets; and • Impairments of our non-financial assets. 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. 8      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 . 9
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.