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Beta Finch - Texas Inst. - TXN - EN

Beta Finch - Texas Inst. - TXN - EN

Written by: Beta Finch
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AI-powered earnings call analysis for Texas Instruments (TXN). Two AI hosts break down quarterly results, key metrics, and market implications in digestible podcast episodes.2026 Beta Finch Economics Personal Finance
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  • Texas Instruments Q2 2026 Earnings Analysis

    Texas Instruments Q2 2026 Earnings Analysis
    Jul 23 2026
    More earnings analysis: https://betafinch.com
    Groups: CHIPS (https://betafinch.com/groups/CHIPS)
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    ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown for the companies moving the market. Today we're digging into Texas Instruments' second quarter 2026 results — and there's a lot going on, including a CFO transition. Before we get into it, quick note: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

    JORDAN: And there's plenty to unpack here, Alex. TI just posted $5.5 billion in revenue, up 13% sequentially and 23% year-over-year. That's a really strong beat — they actually came in above their guided range.

    ALEX: Right, and it wasn't just one segment carrying the load. Analog grew 26% year-over-year, Embedded Processing grew 16%. Gross margin jumped 340 basis points sequentially to 61%. Operating profit was $2.3 billion, up 48% from a year ago. Net income landed at $2 billion, or $2.14 a share — and that included a nice little tax-related bonus of about five cents that wasn't in the original guide.

    JORDAN: What really stands out to me is the breadth. Industrial was up around 30% year-over-year, data center literally doubled year-over-year, and automotive — which had been the laggard — suddenly accelerated to mid-teens growth. CEO Aviv Alon said it best: this used to be an industrial-and-data-center story, and now automotive is joining the party.

    ALEX: Yeah, and he had an interesting theory on why automotive picked up so fast — inventory at customers had gotten so lean that even a small uptick in demand exposed the shortage. Combine that with EV and hybrid strength out of China, and you get this sudden inflection.

    JORDAN: There's also a CFO changing of the guard here. Rafael Lizardi, who's been CFO for nearly a decade, is retiring at the end of August. Julie Knecht, a 25-year TI veteran and the outgoing chief accounting officer, steps in August 1st. Rafael got a nice send-off on the call — sounded like an emotional moment for him.

    ALEX: Definitely bittersweet. But let's talk guidance, because that's where it gets exciting. TI guided Q3 revenue to $5.65 to $6.15 billion and EPS of $2.23 to $2.57 — that's an above-seasonal guide, and management basically said the strength is broad-based across industrial, data center, automotive, and even personal electronics, which is typically TI's seasonal Q3 driver anyway.

    JORDAN: One thing analysts kept probing on was pricing. Management confirmed prices were flat — stable — through the first half, which is actually notable since prices typically erode a couple points a year at TI. Now they're starting to push through price increases, customer by customer, mostly concentrated in Analog for now, with Embedded pricing conversations pushed more toward next year's annual negotiations. But they were clear Q3's growth is overwhelmingly unit-driven, not price-driven.

    ALEX: The data center story is fascinating too. It's already doubled year-over-year, and when asked about long-term growth rates there, Aviv wouldn't pin a number on it — he framed it as "we want to outgrow the market," pointing to their power tree and signal chain content, plus the shift toward higher-voltage architectures like 800 volts, which actually creates more conversion stages and more silicon opportunity for TI.

    JORDAN: And capacity is a big differentiator this cycle. Unlike the last upcycle, where clean room construction was the bottleneck, TI says they now have clean room space ready to go at Sherman and Richardson, plus Lehigh 2 coming online by year-end. CFO commentary reinforced the 2026 capex guide stays at $2 to $3 billion, possibly trending toward the higher end given demand.

    ALEX: On the capital return side, trailing-twelve-month free cash flow was $6.5 billion, way up from $1.8 billion

    This episode includes AI-generated content.
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    6 mins
  • Texas Instruments Q4 2025 Earnings Analysis

    Texas Instruments Q4 2025 Earnings Analysis
    Feb 25 2026
    # Beta Finch Podcast Script: Texas Instruments Q4 2025 Earnings

    **ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we turn quarterly reports into conversations you can actually follow. I'm Alex, and I'm here with Jordan to dive into Texas Instruments' fourth quarter results that just dropped. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

    **JORDAN**: Thanks Alex. And wow, what a quarter to unpack from TXN. They just reported some pretty impressive numbers that have me raising my eyebrows - in a good way.

    **ALEX**: Right? Let's start with the headline numbers. Revenue came in at $4.4 billion for Q4, which was actually right in line with expectations. But here's what's interesting - that's a 10% jump year-over-year, even though it was down 7% sequentially, which is pretty normal for a fourth quarter.

    **JORDAN**: What really caught my attention was the segment performance. Analog revenue grew 14% year-over-year, embedded processing was up 8%. But Alex, I think the real story here is what's happening with their end markets. They've actually reorganized how they report these, and there's a new player in town.

    **ALEX**: You're talking about data center, right? They carved out this new category that includes data center compute, networking, and power management. And Jordan, the numbers here are eye-popping - data center revenue grew around 70% year-over-year.

    **JORDAN**: Exactly! And it's not just a flash in the pan. Management said this has been growing for seven consecutive quarters now. They're ending 2025 with about $450 million quarterly run rate in data center, which is becoming a material part of their business.

    **ALEX**: Let's zoom out to the full year picture because it really shows TI's strategic positioning. Industrial was their biggest segment at $5.8 billion, up 12% year-over-year. Automotive matched that at $5.8 billion, up 6%. Together with data center, these three segments made up 75% of their revenue.

    **JORDAN**: That's a massive shift from where they were in 2013 when these segments were only 43% of revenue. It shows they've really focused their portfolio on higher-growth, more resilient markets. But Alex, what really impressed me was the cash flow story.

    **ALEX**: Oh absolutely. Free cash flow nearly doubled to $2.9 billion, or 17% of revenue. That's a 96% increase from 2024. And they returned a whopping $6.5 billion to shareholders over the past twelve months through dividends and buybacks.

    **JORDAN**: Speaking of dividends, they raised it 4% to $1.42 per share - that's their 22nd consecutive year of increases. But here's what I found fascinating in the Q&A section: they're guiding Q1 revenue between $4.32 billion and $4.68 billion, which is significantly above normal seasonality.

    **ALEX**: Yeah, that really stood out to me too. One analyst pointed out this might be the first time they've guided sequential growth in Q1 since right after the financial crisis, about fifteen years ago. When pressed about what's driving this, management was pretty clear it's not pricing-related.

    **JORDAN**: Right, CEO Haviv Ilan was emphatic that pricing isn't the driver here. He actually expects company-wide pricing to be down low single digits in 2026, similar to 2025. Instead, he pointed to stronger bookings, particularly in industrial and data center markets.

    **ALEX**: The industrial recovery story is interesting because they're still about 25% below their 2022 peak levels, so there's room to run. But what I found most intriguing was their inventory strategy. They've built up $4.8 billion in inventory - 222 days worth - and management seems really proud of this position.

    **JORDAN**: And for good reason, Alex. In today's environment where customers are placing more last-minute orders - what

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    9 mins
  • Coming Soon - Beta Finch EN

    Coming Soon - Beta Finch EN
    Feb 17 2026
    Stay tuned for AI-powered earnings analysis from Beta Finch.

    This episode includes AI-generated content.
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    2 mins
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