TI signals industrial rebound

Texas Instruments told investors on April 22 that current-quarter sales and profit should top Wall Street estimates, helped by stronger orders from industrial customers and data centers. (ti.com, wkzo.com) The company said second-quarter revenue should land between $5.0 billion and $5.4 billion, with earnings per share of $1.77 to $2.05. Reuters, citing LSEG data, said analysts had expected about $4.86 billion in revenue and $1.57 a share. (ti.com, wkzo.com) For the March quarter, Texas Instruments reported revenue of $4.83 billion, net income of $1.55 billion, and earnings per share of $1.68. Chief executive Haviv Ilan said revenue rose 9% from the prior quarter and 19% from a year earlier. (ti.com) Texas Instruments makes analog chips, the parts that handle real-world signals such as power, sound, temperature, and light before other chips process the data. Because those parts go into factory gear, cars, and communications equipment, TI’s results are often read as a check on everyday electronics demand, not just artificial-intelligence servers. (wkzo.com) That is why investors focused on what happened outside the biggest artificial-intelligence systems. On the earnings call, Ilan said both Analog and Embedded Processing grew sequentially and from a year earlier, with Analog up 22% year over year and Embedded Processing up 12%. (finance.yahoo.com) Ilan also said TI’s data-center business grew about 90% from a year earlier. Reuters reported that industrial and automotive customers have also started ordering again after working through extra inventory built up during the pandemic. (wkzo.com) The stock jumped after the report. Reuters said the shares rose more than 10% in extended trading on April 22, while MarketBeat showed TXN up $3.16 to $236.31 during regular trading that day. (wkzo.com, marketbeat.com) Wall Street watches Texas Instruments early in earnings season because its chips are used across so many end markets. Stifel analyst Tore Svanberg told Reuters that industrial inventories look lean and automotive “is also likely starting a new up-cycle.” (wkzo.com) TI paired the stronger demand signal with heavy spending on its own footprint. Over the last 12 months, the company said it generated $7.8 billion in operating cash flow, spent $4.1 billion on capital expenditures, and returned $6.0 billion to shareholders. (ti.com) The next test is whether those order trends hold through the rest of 2026. For now, Texas Instruments is saying the rebound is reaching factory floors and control systems, not just the biggest cloud-computing campuses. (wkzo.com, finance.yahoo.com)