Yep, the Data Center Boom Is Taking Texas Instruments With It

1 hour ago 3

Rich Duprey

Thu, April 23, 2026 astatine 10:05 AM CDT 3 min read

Texas Instruments (TXN) posted Q1 FY2026 gross of $4.83B (beating statement by $300M) and diluted EPS of $1.68 (23% supra the $1.36 estimate), with its Analog conception surging 22% and escaped currency travel jumping 611% YoY to $1.40B. Management guided Q2 gross to $5.00B-$5.40B, signaling continued acceleration.
Data halfway infrastructure request and concern rhythm betterment are lifting request for Texas Instruments’ powerfulness absorption and awesome concatenation components that beryllium astatine the AI edge.
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Texas Instruments (NASDAQ:TXN) conscionable delivered the benignant of 4th that validates the full information halfway infrastructure thesis. The analog chipmaker posted Q1 FY2026 gross of $4.83 billion, beating the $4.53 cardinal consensus, portion diluted EPS of $1.68 exceeded the $1.36 estimation by 23.15%. Shares roseate 15.68% connected the people to $273.36. While TI doesn't physique AI accelerators, its powerfulness absorption and awesome concatenation components beryllium astatine the AI edge, and that positioning is present paying off.

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Category

Grade

Key Insight

Revenue Performance	A	Revenue of $4.83 cardinal roseate 18.58% YoY and 9% sequentially, led by the Analog conception astatine $3.92 cardinal (+22%).
Earnings Beat/Miss	A	EPS of $1.68 bushed the $1.36 consensus, the second-largest astonishment successful 5 quarters.
Forward Guidance	A-	Q2 gross guided to $5.00 cardinal to $5.40 cardinal with EPS of $1.77 to $2.05, implying continued acceleration.
Profit Margins	A-	Operating nett jumped 36.56% to $1.81 cardinal connected conscionable 18.58% gross growth, a textbook show of 300mm operating leverage.
Cash Generation	A	Free currency travel of $1.40 cardinal surged 610.58% YoY arsenic capex moderated 39.8%.
Management Tone	B+	CEO Haviv Ilan credited "growth led by concern and information center," assured but measured fixed commercialized and cyclical risks.

Embedded Processing besides impressed, with gross of $723 cardinal up 12% and operating nett soaring 205% YoY. CHIPS Act proceeds of $555 cardinal successful the 4th further padded the currency presumption to $3.55 billion.

TI earns an A- overall. The operation of a 23.15% EPS beat, raised guidance, and exploding escaped currency travel makes this the clearest validation yet that the concern rhythm has turned and information halfway request is pulling analog contented higher. The stock's year-to-date summation of 37.11% and one-year instrumentality of 66.13% bespeak the market's conviction. Valuation is the caveat: astatine 43x net and trading supra the expert statement people of $227.33, a batch of optimism is priced in, though insiders person kept accumulating with 85 caller transactions nett buying. With Q2 net owed July 20, 2026, the cardinal trial is whether operating leverage scales arsenic the information halfway ramp continues.

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