TXN · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

TEXAS INSTRUMENTS INC · 2026-07-24 · Importance 64 · Surprise 56 · No source text

Second-quarter gross profit was $3.35 billion, up $777 million or 30% year over year. Gross margin increased to 61.4% from 57.9%, primarily because of higher revenue, partly offset by higher manufacturing costs associated with planned capacity expansions. First-half gross profit was $6.15 billion, up $1.26 billion or 26%, while gross margin increased to 59.8% from 57.4%. Analog operating margin rose to 45.6% from 38.4% in the second quarter, and Embedded Processing operating margin rose to 21.3% from 12.5%.

Key facts

• Second quarter gross profit: $3.35 billion, up $777 million, or 30%, primarily due to higher revenue partially offset by higher manufacturing costs associated with planned capacity expansions. source
• First six months 2026 gross profit: $6.15 billion, up $1.26 billion, or 26%, primarily due to higher revenue partially offset by higher manufacturing costs associated with planned capacity expansions. source
• Second quarter gross profit as a percentage of revenue increased to 61.4% from 57.9%. source
• First six months 2026 gross profit as percentage of revenue: 59.8% compared with 57.4% prior year. source

Impact estimates