TXN · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
TEXAS INSTRUMENTS INC · 2026-07-24 · Importance 45 · Surprise 38 · From source text
Second-quarter income tax provision increased to $258 million from $183 million because of higher pretax income, partly offset by $35 million of higher discrete tax benefits from stock-based compensation. The effective tax rate was 12% in both second-quarter periods. First-half tax provision increased to $427 million from $280 million, and the effective tax rate increased to 11% from 10%. CHIPS Act investment tax credits provided $301 million of first-half 2026 cash tax benefits, compared with $203 million in the prior-year period.
Key facts
- First six months 2026 provision for income taxes: $427 million compared with $280 million; effective tax rate (including discrete items) was 11% compared with 10%. source
- For the twelve months ended June 30, 2026 and 2025, cash benefits from the CHIPS Act ITC used to reduce income taxes payable were $433 million and $479 million, respectively. source
- Second quarter provision for income taxes: $258 million compared with $183 million; effective tax rate (including discrete items) was 12% in both periods. source
- Cash flows from operating activities for the first six months of 2026 include CHIPS Act ITC benefits used to reduce income taxes payable of $301 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -2.7% | First six months 2026 provision for income taxes: $427 million compared with $280 million; effective tax rate (including discrete items)… |
| net_income | negative | realized | -1.4% | Second quarter provision for income taxes: $258 million compared with $183 million; effective tax rate (including discrete items) was 12%… |
| cash | negative | realized | -0.1% | For the twelve months ended June 30, 2026 and 2025, cash benefits from the CHIPS Act ITC used to reduce income taxes payable were $433… |