Texas Instruments Raises Q2 Guidance to $5–5.4B, Q1 Sales Jump 19%
Texas Instruments forecast Q2 revenue of $5–5.4 billion versus $4.85 billion expected and EPS $1.77–2.05 against $1.57 consensus. Q1 sales rose 19% to $4.83 billion with EPS $1.68 beating $1.38 forecasts, driven by 90% data-center unit growth.
1. Q1 Financial Results
First-quarter sales increased 19% to $4.83 billion and EPS reached $1.68, surpassing analyst forecasts of $4.52 billion revenue and $1.38 earnings. The performance reflects broad strength across TI’s analog and embedded processor portfolios.
2. Strong Q2 Outlook
The company projects second-quarter revenue between $5.0 billion and $5.4 billion and profit of $1.77 to $2.05 per share, significantly above average expectations of $4.85 billion revenue and $1.57 EPS, signaling robust demand ahead.
3. Data-Center and Industrial Growth
Data-center unit sales topped $1 billion annually after growing 90% in the first quarter and over 60% in 2025, while industrial segment demand surged globally, boosting optimism for continued expansion in high-margin markets.
4. Capital Allocation and Investor Returns
Texas Instruments plans to reduce spending on new factories to free up cash flow, enhancing the potential for dividends or share buybacks as it capitalizes on strong sales momentum.