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TI reports first quarter 2026 financial results and shareholder returns

prnewswire.com

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