TXN · Earnings call · 2026Q3T · Full report

Supply Chain and Inventory

TEXAS INSTRUMENTS INC · 2026-10-21 · Importance 20 · Surprise 24 · In source text

Management said TI built inventory during the down cycle and is positioned to help customers facing supply needs, including some industrial and data center customers that requested assistance. It contrasted the current situation with the broader COVID-era shortages, while identifying automotive as the clearest current example of customers having insufficient inventory. TI said it had inventory available in some cases and could commit capacity growth into 2027 and beyond. Management also noted that customers seeking complete product kits may encounter shortages in other components, while TI was positioned to support the TI portion of their requirements.

Key facts

• TI's inventory at the end of Q3 2026 was $4.7 billion, up $67 million sequentially, with inventory days of 194, down two days sequentially.
• TI said some industrial and data center customers had asked for help, and TI had often been able to provide inventory or commit capacity growth into 2027 and beyond.
• TI said its inventory position supports growing demand and that it would continue ramping factories to support revenue growth.
• TI said the supply-demand mismatch was greater in Analog because some Analog supply had gone offline in recent years while additional supply was coming online, and some foundries were transitioning capacity to non-Analog products.
• TI said it had built inventory during the down cycle and could grow capacity every quarter, putting it in a better-prepared position than in the COVID upcycle.

Impact estimates