Q1 2026 revenue was $4.825B, up 19% year over year, with Analog revenue up 22%.
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Security report / TXN
TXN Operating Console
Texas Instruments has credible analog-led recovery evidence, but the valuation already prices a cleaner FCF and capex-normalization path. The next proof window is Q2 revenue and EPS versus guide, Analog margin, inventory days, 2026 capex, FCF quality excluding incentive and timing effects, and Silicon Labs financing.
Ticker
TXN
Knowledge reviewed
2026-06-07
Links checked
2026-06-24
Chart source
Local API
Module 01 / Price
API required
Selected-Security Chart
Loading TXN daily chart from the local report API.
Loading TXN chart...
Module 02 / Proof window
Recovery-quality test
Current Company View
Next read
Q2 must land inside or above the $5.00B-$5.40B revenue guide without Analog margin, inventory, or FCF quality weakening.
Factory loading and lower capex need to turn revenue recovery into durable FCF per share.
The June 5 lane snapshot put TXN near 49x trailing earnings and 35x forward earnings using secondary market data.
Q2 guide delivery, Analog operating margin, inventory days, capex run-rate, CHIPS incentive bridge, and Silicon Labs financing terms.
Q1 revenue
$4.825B
+19% year over year
Analog mix
81.3%
$3.924B of Q1 revenue
Gross margin
58.0%
Q1 2026
TTM FCF
$4.351B
23.6% FCF margin
Inventory days
209
Down from 222 at 2025 year-end
Cash / debt
$5.103B / $14.050B
Before Silicon Labs financing
Trade Plan
Selected Security Trade Plan
Exposure Map
Business Profile, Segments, And Exposure
TXN is an analog-led semiconductor company with embedded processing as the second segment. The setup depends on broad electronics recovery, factory loading, and FCF conversion rather than direct accelerator supply.
Business model
Analog breadth with owned manufacturing
TI designs, manufactures, tests, and sells analog and embedded processing chips. The source lane ties the edge to more than 80,000 products, direct customer reach, and internal 300mm manufacturing.
Disclosure map
Two reportable segments, annual end-market mix
Quarterly results split Analog, Embedded Processing, and Other. Industrial, automotive, data-center, and personal-electronics exposure is mostly annual, so end-market breadth must be inferred carefully.
Analog
Core profit engine.
Analog produced $3.924B of Q1 revenue and $1.638B of operating profit, or about 90.6% of segment operating profit.
More useful evidence
Analog margin holding or improving as utilization rises.
Embedded Processing
Improving but lower margin.
Embedded Processing had $723M of Q1 revenue and $122M of operating profit, with Silicon Labs expected to increase strategic focus here.
More useful evidence
Post-deal financing cost, synergy timing, and embedded wireless contribution.
Industrial and automotive
Broad recovery test.
Each market represented 33% of FY2025 revenue, making non-AI semiconductor breadth central to the setup.
More useful evidence
Orders, cancellations, lead times, and inventory days that show durable end demand.
Data center spillover
Helpful but indirect.
Data center was 9% of FY2025 revenue. The exposure is power, signal-chain, and embedded content, not direct AI accelerator supply.
More useful evidence
Data-center growth that does not mask weak industrial or automotive breadth.
Value Driver Board
Relative Value And Value Drivers
TXN's valuation depends on recovery converting into cash. Revenue growth matters, but the decisive checks are Analog margin, capex, inventory, and deal funding.
Revenue and Analog
$5.00B-$5.40B Q2 guide
Q2 revenue and EPS need to confirm that Q1 was not just a first-half inventory-cycle bounce.
Next: Q2 revenue, EPS, Analog revenue, and management demand commentary.
Factory loading
58.0% Q1 gross margin
Owned 300mm capacity becomes a margin edge only if utilization rises with demand.
Next: gross margin, depreciation, utilization, and Analog operating margin.
FCF quality
$4.103B TTM capex
Lower capex supports FCF, but the quality test is operating conversion without leaning mainly on incentives or timing.
Next: 2026 capex versus $2B-$3B, FCF margin, and CHIPS incentive bridge.
Silicon Labs
$7.5B all-cash deal
The transaction can add embedded wireless exposure, but it shifts the proof burden toward financing, leverage, and integration.
Next: approvals, funding mix, interest cost, close timing, and synergy evidence.
Guidance Tests
Guidance Path And What Changed
The April 22 Q1 release beat the prior Q1 guide and set Q2 revenue guidance at $5.00B-$5.40B with EPS of $1.77-$2.05.
Can Q2 validate the recovery?
Confirm revenue inside or above the guide with EPS in range or better.
Warn if revenue misses, EPS misses despite revenue in range, or management guides to weaker Q3 demand.
Does Analog carry the margin proof?
Confirm Analog revenue and operating margin hold or improve as utilization rises.
Warn if Analog rolls over while expectations still price recovery durability.
Is the FCF bridge clean?
Confirm capex tracks toward $2B-$3B and FCF improves without relying mainly on one-time effects.
Warn if inventory days rise again or capex stays elevated without demand evidence.
Operating Evidence
Operating Evidence And KPIs
These tiles summarize source-routed evidence. Use the lane and raw outputs for the full claim and evidence map.
$4.825B
Q1 revenue rose 19% year over year and 9% sequentially.
$1.638B
Analog operating profit rose 36% year over year and supplied most segment profit.
$7.824B / $4.351B
TTM CFO and non-GAAP FCF improved, helped by lower capex and CHIPS proceeds.
209 days
Inventory days improved from year-end 2025 but remain high enough to watch order quality.
Capital Ledger
Financial Quality And Capital Allocation
Liquidity is strong, but capital allocation is no longer simple because dividends, capex, debt, buybacks, and Silicon Labs funding all compete with the FCF recovery.
Liquidity and debt
$5.103B cash plus short-term investments
At March 31, 2026, TXN had $14.050B of total debt, $1.149B of current debt, an undrawn $1B revolver, and no commercial paper outstanding.
Capital allocation
$1.291B dividends and $158M buybacks in Q1
Buybacks were modest versus dividends. The $7.5B Silicon Labs transaction adds cash and debt funding needs before the organic FCF-per-share path is fully proven.
Position Board
Competitive Position
TXN has a real analog franchise edge. The economics remain conditional on demand breadth and factory loading.
What TXN has
Analog generated about 81.3% of Q1 revenue and 90.6% of segment operating profit.
Owned 300mm capacity can lower unit cost when the factories are loaded.
FY2025 disclosures show more than 80% direct revenue and more than 80,000 products.
What is not proven
Quarterly disclosure does not fully show whether industrial, automotive, and data-center growth is broad or concentrated.
Non-GAAP FCF includes CHIPS incentives and capex decline, so the operating conversion bridge needs to be separated.
Silicon Labs financing terms, interest cost, leverage impact, and integration timing remain open.
Street View
Ownership, Flows, Valuation, And Street Views
Official TI and SEC pages carry the operating evidence. Aggregator items are dated outside-view context and should be refreshed before trading-sensitive use.
IR, 10-Q, and filings checked 2026-06-24
TI's April 22 release and Q1 10-Q carry the Q1 results, Q2 guide, cash-flow bridge, segment data, and balance sheet.
Dashboard use: primary source routing and filing freshness. Texas Instruments investor relations$294.41 average target
Checked 2026-06-24: page showed 36 S&P Global-polled analysts, Buy consensus, $200 low, $400 high, and a Jun. 23 close of $304.36.
Dashboard use: target below the checked close, with wide dispersion. StockAnalysis TXN forecastCiti $345, Wells Fargo $300, Bernstein $250
StockAnalysis listed Citi reiterating Buy and raising target to $345 on 2026-06-15; Wells Fargo Hold $300 on 2026-06-09; Bernstein Hold $250 on 2026-06-08; Evercore ISI Buy $316 and Stifel Buy $340 on 2026-06-04.
Dashboard use: post-rally debate is no longer whether TXN can recover, but how much recovery is already capitalized. Latest forecast tableHold consensus from 28 analysts
Checked 2026-06-24: MarketBeat showed 4 sell, 11 hold, 12 buy, and 1 strong buy rating over the last twelve months.
Dashboard use: second aggregator with a more cautious consensus framing. MarketBeat TXN forecastDividends, lower buybacks, and insider selling context
The filed lane treats Q1 buybacks, large dividends, passive chip-sector flow exposure, and secondary-source insider selling as lower-signal than operating and valuation evidence.
Dashboard use: watch capital return, deal funding, Form 4 activity, and semiconductor ETF beta. Knowledge lane ownership section
Scenario Board
Scenario Assessment And Sensitivities
The source profile is constructive on operating recovery but demanding on proof because valuation, capex normalization, and M&A execution all need to work.
Base
TXN meets or modestly beats Q2 guidance, Analog remains the profit engine, capex tracks toward $2B-$3B, and FCF conversion improves.
Upside
Q2 beats, Analog and Embedded both improve, inventory days fall, capex trends toward the low end of guidance, and duration pressure eases.
Downside
Revenue or EPS misses, Analog margins weaken, inventory days rise, capex pressure persists, chip beta compresses valuation, or Silicon Labs financing absorbs the FCF recovery.
Trigger Stack
Monitoring Triggers
These are business evidence checks. Chart overlays remain in the shared overlay rules, outside this page.
Q2 results
Revenue and EPS versus guide
Confirm Q2 revenue inside or above $5.00B-$5.40B and EPS inside or above $1.77-$2.05.
Warn if revenue misses or EPS misses despite revenue in range.
Analog margin
Core segment durability
Confirm Analog revenue and operating margin hold or improve.
Warn if Analog revenue or margin rolls over while valuation remains recovery-sensitive.
FCF and capex
Cash conversion quality
Confirm capex tracks toward $2B-$3B while FCF margin improves without relying mainly on incentive effects.
Warn if capex materially exceeds the range without clear incremental demand.
Inventory
Order quality and channel discipline
Confirm inventory days keep falling as revenue grows.
Warn if inventory days rise again while revenue growth slows.
Silicon Labs
Financing and integration
Confirm approvals, financing mix, and synergy timing that fit current FCF capacity.
Warn if financing materially raises leverage, interest burden, or integration costs.
Semiconductor beta
Rate and chip-flow sensitivity
Confirm TXN holds valuation support through rate and SOXX volatility.
Warn if duration pressure or chip-sector drawdowns overwhelm solid company data.
Risk Punch Cards
Risks, Invalidations, And Quality Flags
The key risks are recovery quality, factory loading, valuation, M&A funding, disclosure precision, and FCF bridge quality.
Cycle quality
Basis
Q1 growth and Q2 guidance show recovery, but the source lane keeps demand breadth as the test.
Warning
Orders, cancellations, lead times, or Q3 commentary show a narrow or inventory-led recovery.
Reduce concern
Broad industrial, automotive, and data-center strength persists with clean inventory movement.
Owned-fab drag
Basis
300mm internal capacity is a cost edge only when utilization improves.
Warning
Gross margin or FCF weakens as expanded capacity remains underloaded.
Reduce concern
Analog margins improve while capex and depreciation pressure normalize.
Valuation air pocket
Basis
Secondary data in the lane showed high trailing and forward earnings multiples on June 5.
Warning
In-line results are treated as insufficient after the recovery repricing.
Reduce concern
Q2 and Q3 evidence beats the proof burden while FCF quality improves.
Silicon Labs funding
Basis
$7.5B all-cash deal expected to use cash on hand and debt financing.
Warning
Financing, leverage, interest cost, or integration cost absorbs too much FCF recovery.
Reduce concern
Funding terms and synergy timing preserve FCF per share and balance-sheet flexibility.
Disclosure limits
Basis
End-market detail is annual, while segment data are quarterly.
Warning
Quarterly growth cannot be tied to broad industrial and automotive breadth.
Reduce concern
Management gives clearer order, lead-time, cancellation, and end-market commentary.
FCF bridge quality
Basis
Non-GAAP FCF includes CHIPS incentives and capex decline.
Warning
Reported FCF improves without margin, utilization, or working-capital support.
Reduce concern
Recurring operating cash conversion improves alongside lower capex.
Diagnostics
Diagnostics, Freshness, And Known Unknowns
Freshness is explicit because this page is a projection of a filed source lane, not a research refresh.
Freshness
No stale-source warning
Source run
Market data
Web check
Latest filed security source run generated 2026-06-07T04:09:50Z.
Lane market snapshot as of 2026-06-05; outside forecast pages checked 2026-06-24.
Official TI IR, SEC, Q1 release, Silicon Labs release, and street-view pages checked 2026-06-24.
Known unknowns
Evidence gaps
Transcript coverage
Primary market data
Financing terms
Full last-four-quarter transcript reconstruction is incomplete.
Valuation and tape inputs rely on secondary quote and statistics sources.
Silicon Labs debt financing terms, interest cost, rating impact, and integration timing are not yet disclosed.
Source Bay
Links And Filings
Human-useful routes to the source lane, raw projections, filings, metadata, and local chart host.
Canonical TXN knowledge lane
Source-routed company research, claim/evidence map, diagnostics, and known unknowns.
Latest profile projection
Scenario, forecast, trigger, risk, and unknown objects for the report layer.
Latest research projection
Q1 metrics, valuation snapshot, source refs, claim IDs, and evidence IDs.
Texas Instruments investor relations
Official IR landing page with news, reports, filings, stock information, and event routes.
TI IR SEC filings
Company-hosted filings list; recent first-page items included June 2026 Form 4 and 8-K filings.
SEC company filings
SEC company browse page for Texas Instruments, CIK 97476.
Latest 10-Q
Form 10-Q for the quarterly period ended March 31, 2026.
Latest earnings release
Q1 2026 results release dated April 22, 2026.
Silicon Labs acquisition release
Official transaction release dated February 4, 2026.
StockAnalysis forecast
Dated outside-view forecast and analyst action table checked 2026-06-24.
Report metadata JSON
Machine provenance, page sections, source trail, chart endpoints, and web freshness notes.
Fallback chart page
Universal security chart route for TXN when a detailed page is not needed.
Local chart API: supplies the daily 9-month and weekly 5-year TXN chart views.
Chart overlays: this HTML and JSON do not store page-specific overlay definitions. Shared overlay rules resolve TXN levels separately if present.