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<h3 id="key-highlights">Key Highlights</h3><ul><li>Texas Instruments delivered Q2 EPS of $2.14/share, surpassing the $1.94 consensus by 8.85%</li><li>Quarterly revenue reached an all-time high of $5.46 billion, marking 23% year-over-year growth</li><li>Shares declined approximately 5% in premarket hours on Thursday following the announcement</li><li>Third-quarter outlook exceeded analyst projections for both earnings and revenue</li><li>Data center segment revenue surged 100% compared to the prior year; automotive business gained momentum</li></ul>Shares of Texas Instruments retreated roughly 5% during Thursday’s premarket session, even as the semiconductor giant unveiled record-setting quarterly results that exceeded Wall Street’s profit and revenue forecasts.<a href="https://knockoutstocks.com/stock/TXN" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/TXN/embed" alt="TXN Stock Card"> Texas Instruments Incorporated, TXN </a>The stock finished Wednesday’s trading day at $294.19 before sliding to $285.20 during extended-hours activity — representing a decline of approximately $9, or 3.06%.The company announced adjusted Q2 earnings per share of $2.09, exceeding the Street’s $1.92 estimate by $0.17. When factoring in a $0.05 tax-related benefit, GAAP earnings reached $2.14 per share.<div class="embed-x"><blockquote class="twitter-tweet">TEXAS INSTRUMENTS <a href="https://x.com/search?q=%24TXN&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$TXN</a> Q2’26 EARNINGS HIGHLIGHTS<img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" class="wp-smiley" style="height: 1em; max-height: 1em;"> Revenue: $5.46B (Est. $5.24B) <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f7e2.png" alt="🟢" class="wp-smiley" style="height: 1em; max-height: 1em;">; +23% YoY, +13% QoQ <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" class="wp-smiley" style="height: 1em; max-height: 1em;"> EPS: $2.14 (Est. $1.95) <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f7e2.png" alt="🟢" class="wp-smiley" style="height: 1em; max-height: 1em;">; +52% YoY <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f538.png" alt="🔸" class="wp-smiley" style="height: 1em; max-height: 1em;"> EPS includes a 5-cent benefit not in original guidanceQ3 Guide: <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" class="wp-smiley" style="height: 1em; max-height: 1em;"> Revenue: $5.65B-$6.15B (Est. ~$5.57B) <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f7e2.png" alt="🟢" class="wp-smiley" style="height: 1em; max-height: 1em;"> <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" class="wp-smiley" style="height: 1em; max-height: 1em;"> EPS: $2.23-$2.57…— Wall St Engine (@wallstengine) <a href="https://x.com/wallstengine/status/2080020949848764920?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 22, 2026</a></blockquote></div>Quarterly sales hit $5.46 billion, climbing 23% from the same period last year and 13% sequentially from the first quarter. The figure surpassed Wall Street’s anticipated $5.24 billion.The Analog division posted 26% year-over-year growth, while Embedded Processing expanded 16%. Strong performance across both core segments suggests a widespread demand recovery rather than isolated strength.The company generated $2.3 billion in operating profit, representing 42% of total revenue — a 48% increase versus the prior year. Gross margins reached 61%, climbing 340 basis points quarter-over-quarter.Trailing twelve-month free cash flow stood at $6.5 billion, a substantial jump from the $1.8 billion recorded one year earlier.<h3 id="forward-outlook-exceeds-consensus-yet-market-remains-unimpressed">Forward Outlook Exceeds Consensus Yet Market Remains Unimpressed</h3>Looking ahead to the third quarter, <a href="https://coincentral.com/texas-instruments-txn-stock-morgan-stanley-raises-estimates-as-semiconductor-recovery-holds/" rel="noopener noreferrer nofollow">TXN</a> projected revenue between $5.65 billion and $6.15 billion, with a midpoint of $5.90 billion. This outlook surpassed the $5.63 billion analyst consensus.The company forecasted earnings per share ranging from $2.23 to $2.57, with a midpoint of $2.40 — comfortably ahead of the $2.18 Street estimate.Company leadership indicated that volume growth will primarily fuel expansion rather than price increases, though the firm has begun implementing price hikes and anticipates additional adjustments in upcoming quarters.The capital expenditure forecast for 2026 remained unchanged at $2 billion to $3 billion, with executives noting that spending may lean toward the upper end of that range.<h3 id="data-center-business-doubles-while-automotive-gains-traction">Data Center Business Doubles While Automotive Gains Traction</h3>Chief Executive Haviv Ilan highlighted that data center revenue doubled year-over-year, building on the 90% expansion reported in the previous quarter. While this segment, which primarily consists of power management semiconductors, represents a smaller portion of total business, it captured significant analyst interest.The automotive sector also demonstrated clearer acceleration during the quarter, which company officials characterized as an encouraging development.Industrial markets continued delivering consistent contributions, complementing what management described as broad-based strength across all major end markets.Prior to the earnings release, TXN shares had climbed approximately 70% year-to-date. This impressive rally may partially account for the subdued market response — even strong results struggled to meet elevated investor expectations.Days of inventory declined to 196 from 209, indicating improving supply-demand dynamics.The company’s planned Silicon Labs acquisition continues progressing toward an expected closing in the first half of 2027, with financing through a combination of cash and debt. Texas Instruments has increased its dividend payout for 22 straight years, currently offering a 1.95% yield.The post <a href="https://blockonomi.com/texas-instruments-txn-stock-slides-5-after-delivering-record-breaking-quarterly-results/" rel="noopener noreferrer nofollow">Texas Instruments (TXN) Stock Slides 5% After Delivering Record-Breaking Quarterly Results</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Texas Instruments (TXN) Stock Slides 5% After Delivering Record-Breaking Quarterly Results

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