Texas Instruments revenue growth accelerates in second quarter
Texas Instruments (TXN) reported second-quarter 2026 revenue growth of 22.8% year over year, a clear step up from the prior quarter. The company’s total revenue over the last twelve months reached $19.5 billion, up from $16.7 billion a year earlier. This performance propelled the stock to a 67% gain over the twelve-month period ending October 8, 2026, outpacing the S&P 500’s 17% return.
Texas Instruments (TXN) reported second-quarter 2026 revenue growth of 22.8% year over year, a clear step up from the prior quarter. The company’s total revenue over the last twelve months reached $19.5 billion, up from $16.7 billion a year earlier. This performance propelled the stock to a 67% gain over the twelve-month period ending October 8, 2026, outpacing the S&P 500’s 17% return.
The underlying driver for this expansion was a recovery in demand among industrial customers and data centers. During an earnings call on July 22, 2026, management stated that industrial sales rose approximately 30% from a year earlier in the second quarter, while data center sales doubled. Executives noted that the company’s ability to supply from dependable capacity was becoming a competitive advantage, validating a point raised during an April 23, 2025, call where they stated that "geopolitically dependable capacity will matter more." In practical terms, this meant customers were placing a higher premium on the origin of their components, a factor benefiting Texas Instruments as it manufactures its own chips.
Signs of this turnaround emerged earlier than the stock price movement suggested. The earliest indicators appeared in autumn 2024, when management noted on an October 22, 2024, earnings call that the industrial market was down slightly as customers reduced inventories. However, financial results filed the next day showed the overall contraction was slowing. Third-quarter 2024 revenue fell 8.4% from a year earlier, an improvement from the 15.6% drop in the preceding quarter. By the fourth quarter of 2024, the decline had narrowed to 1.7%. Management highlighted on a January 23, 2025, call that industrial and automotive customers constituted about 70% of revenue, meaning any rebound in those sectors would lift the entire company.
Growth followed shortly after these initial stabilizing signs. A report filed on April 24, 2025, showed first-quarter 2025 revenue rising 11.1%. The expansion gathered pace in the second quarter of that year, with revenue rising 16.4%, detailed in a filing on July 29, 2025. At the time, spotting the turnaround required looking past tariff headlines; news coverage on April 21, 2025, had predicted that trade tensions and industrial slowdowns would hurt first-quarter sales. Management also cautioned on a July 22, 2025, call that tariffs were disrupting supply chains.
The latest report confirms that growth is accelerating further. On the July 22, 2026, call, management added that the company’s backlog of orders had built through the quarter and that it had started raising prices. The stock now trades at 43.4 times earnings, close to its ten-year high of 44.9. Peer performance varied over the same window: Analog Devices returned 75.8%, while NXP Semiconductors returned 7.1%.
For the third quarter of 2026, which has ended but for which results have not yet been reported, management forecast revenue of $5.65 billion to $6.15 billion. This compares with the $5.5 billion reported for the second quarter. A result above $6.15 billion would indicate demand is running ahead of management’s forecast, while revenue below $5.65 billion would signal demand is falling short.