Texas Instruments Inc.

Q2 performance: strong, broad-based demand - Revenue $5.5B, +13% sequentially and +23% YoY (better than guidance range per management). - Segment growth: Analog +26% YoY, Embedded Processing +16% YoY; Other -2% YoY. - End markets: Industrial +~30% YoY (+~10% seq), Automotive mid-teens YoY (+upper single digits seq), Data center doubled YoY (+~20% seq), Personal electronics flat YoY (+upper single digits seq), Communications up YoY and seq. - Key narrative: customers rebuilding demand; TI’s inventory/capacity investments are helping during this increased demand period.

Gross margin / profitability: improved despite rising activity - Gross profit $3.4B = 61% of revenue; gross margin +340 bps sequentially. - Operating profit $2.3B (42% of revenue), +48% YoY. - EPS $2.14, including a $0.05 discrete tax benefit not in original guidance. - OpEx guidance posture: expecting OpEx (and related items) roughly flat Q2→Q3 (helps modeling margins), with the usual “fall-through” concept applying.

Cash flow & capital management: strong shareholder returns; balance sheet remains solid - Cash flow from operations $2.7B (T12M $8.7B). - Capex $514M in Q2; $3.3B over last 12 months. - Free cash flow (T12M) $6.5B, up vs $1.8B in Q2 2025, benefiting from $1.6B CHIPS Act incentives included in FCF. - Shareholder returns: $1.3B dividends paid in Q2; $5.8B returned in past 12 months. - Balance sheet: $7B cash & short-term investments, debt $14B (weighted average coupon 4%). - Inventory: $4.6B, down $90M sequentially; days 196 down 13 sequentially (positive for cash).