TXN · Earnings call · 2026Q3T · Full report

Automotive Demand Recovery

TEXAS INSTRUMENTS INC · 2026-10-21 · Importance 48 · Surprise 40

Automotive revenue grew by the mid-teens year over year and about 10% sequentially in Q3, with management describing customer demand as strong. Customers had not retained much inventory, so TI was supporting production ramps and did not see customer inventory building; some parts required time to match output and product mix to demand. China and the U.S. were the main contributors to automotive growth, while hybrid, electric, and powertrain systems grew about twice as fast as TI’s overall business. Management also said China’s automotive industry, especially EVs, was leading in system development and that TI’s China business was growing faster because of higher-content systems and share for TI.

Key facts

• TI said customers had not kept much inventory in automotive, did not see an automotive inventory buildup, and was supporting customers as they ramped production.
• TI reported Q3 2026 automotive revenue growth in the mid-teens year over year and about 10% sequentially.
• TI said automotive customers had higher demand in Q3 2026 and that demand might continue into Q4.
• TI said China automotive business was growing faster for TI, with higher-content systems and higher TI share contributing to the growth.
• TI said automotive growth in Q3 2026 was driven by China and the U.S., and the hybrid, electric, and powertrain systems sector grew about twice as fast as TI's overall business.
• TI said its automotive Q3 2026 business was driven by China and the U.S.