Texas Instruments reported second-quarter revenue of $5.5 billion, representing a 23% increase from the previous year, while earnings per share reached $2.14, up 52%. These results exceeded Wall Street expectations and were accompanied by an optimistic outlook for the third quarter.
The company’s growth was broad-based, with industrial revenue rising approximately 30%, automotive sales increasing in the mid-teens, and data center revenue doubling. CEO Haviv Ilan attributed this momentum to previous investments in inventory and manufacturing capacity, noting that strength is now visible across multiple markets rather than being limited to specific sectors.
Looking ahead, Texas Instruments expects third-quarter revenue to fall between $5.65 billion and $6.15 billion, with earnings per share projected between $2.23 and $2.57. Management also indicated that the company has begun raising prices after keeping them flat for most of the past year.
In a significant strategic move, Texas Instruments announced it is acquiring wireless chip maker Silicon Labs for $7.5 billion in cash. The deal is anticipated to close in the first half of 2027 and is expected to generate approximately $450 million in annual cost savings within three years.
The company’s gross margin expanded by about 350 basis points in the second quarter to reach 61%. Management expects further margin improvements as factory utilization increases. Texas Instruments also highlighted its larger base of 300-millimeter wafer fabs, which are cheaper to operate than older industry standards, potentially making margins more durable during cyclical downturns.
