Texas Instruments earnings preview: Wall Street's high bars rest on Q2 margins, guidance

Texas Instruments (TXN) is scheduled to report its second-quarter earnings on July 22, 2026. Wall Street expects the chipmaker to post Non-GAAP EPS of $1.95 on revenue of $5.24B.

Over the last two years, Texas Instruments has beaten EPS estimates seven times while missing once. Revenue has topped estimates five times and missed three times.

In the first quarter, the company reported GAAP EPS of $1.68, beating estimates by $0.32, while revenue of $4.83B, up 18.7% year over year, topped expectations by $300M.

Along with the results, the company guided for second-quarter revenue of $5.00B-$5.40B and EPS of $1.77-$2.05, putting current consensus estimates near the upper end of the guided earnings range.

It also recently declared a quarterly dividend of $1.42 per share, in line with the previous payout.

According to a recent Seeking Alpha analysis, Luca Socci said the second quarter setup is challenging as investors will be watching whether gross margins approach 60%, operating margins rise above 35%, and the Analog segment generates more than $4B in quarterly revenue.

However, he added that a small earnings beat may not be enough, with investors likely looking for stronger-than-expected results.

Moreover, SA Quant system rates the stock 'Hold' with a 3.48 score, while Wall Street analysts rate the stock 'Buy' with a 3.77 score.

On the performance side, the stock has gained 68.28% year to date, outperforming the S&P 500 (SP500)'s 8.73% return over the same period.

Ahead of the earnings release, Susquehanna raised its price target on the stock to $340 from $300, while cutting its price targets on Macom (MTSI), Synaptics (SYNA), and Wolfspeed (WOLF), which shows the stock's continued optimism despite elevated expectations.