Revenue will be $5 billion to $5.4 billion in the second quarter, the company said in a statement on Wednesday. Analysts had estimated $4.85 billion on average, according to data compiled by Bloomberg.
A resurgence in demand for industrial components spanned all geographies and segments, Chief Executive Officer Haviv Ilan said on a conference call with analysts. The company’s revenue is still short of prior peaks, but that’s spurring optimism that the run-up can continue, he said.
“There is a lot of room to grow,” he said. “I saw it across all sectors in industrial.”
Texas Instruments also is claiming a bigger share of data center spending, which has been fuelled by demand for artificial intelligence. Another promising sign: The company is reducing spending on new factories, giving it more free cash to potentially reward investors.
Texas Instruments’ stock rose more than 11% in extended trading following the announcement. The shares had gained 36% this year heading into the report.
While Texas Instruments doesn’t make the type of high-end digital processors for AI computers, its chips are needed to control power and perform other important functions in data centres. The company’s data centre unit now provides more than $1 billion a year in sales, a total that grew more than 60% in 2025 and 90% in the first quarter.
Texas Instruments is the biggest maker of analogue chips and embedded processors. These components convert real-world inputs into electronic signals and are used in a wide range of devices, typically anything with an on-off switch. The company — the oldest chip producer in the industry — has tens of thousands of products and customers. That makes its financial reports a broad indicator for the economy.
Texas Instruments expects profit in the second quarter of $1.77 to $2.05 a share, compared with the average Wall Street prediction of $1.57.
First-quarter sales increased 19% to $4.83 billion, generating a profit of $1.68 a share. Those numbers also sailed past projections. Analysts were looking for $4.52 billion in revenue and $1.38 a share in earnings.
The chipmaker spent $676 million on new plants and equipment in the period, down from $1.1 billion a year earlier. The company is sticking with its plan to spend between $2 billion and $3 billion this year.
Texas Instruments is winding down heavy spending on a factory network that includes new plants about an hour north of its headquarters in Dallas.
In pursuing the expansion, the company has bucked the industry trend of outsourcing production. The idea is to gain greater control of manufacturing and use more advanced production gear to better capitalise on future demand. Texas Instruments is also looking to produce more chips that can compete with those from Chinese rivals.
The downside of the push has been a reduction in funds available for share buybacks and dividend payments — something that previously used to attract investors.
Texas Instruments also sealed a major deal recently to help fuel growth. In February, it agreed to buy Silicon Laboratories Inc. for about $7.5 billion, a transaction it expects to close in the first half of 2027.
The rebound follows a sales slump in 2023 and 2024. A broad recovery is now finally underway, Ilan said, “after a long hibernation period.”
