UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number 001-03761

TEXAS INSTRUMENTS INCORPORATED

(Exact Name of Registrant as Specified in Its Charter)

Delaware	75-0289970	
(State of Incorporation)	(I.R.S. Employer Identification No.)	
12500 TI Boulevard, Dallas, Texas	75243	
(Address of principal executive offices)	(Zip Code)	

Registrant’s telephone number, including area code 214-479-3773

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered	
Common Stock, par value $1.00	TXN	The Nasdaq Global Select Market	

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	
Non-accelerated filer	☐	Smaller reporting company	☐	
Emerging growth company	☐			

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for	☐		
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act			
			
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒			
913,247,686			
Number of shares of Registrant’s common stock outstanding as of			
July 15, 2026			

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

PART I - FINANCIAL INFORMATION

ITEM 1. Financial statements

			For Three Months Ended		For Six Months Ended	
Consolidated Statements of Income			June 30,				June 30,		
(In millions, except per-share amounts)		2026			2025			2026			2025	
Revenue	$	5,463		$	4,448		$	10,288		$	8,517	
Cost of revenue (COR)		2,111			1,873			4,137			3,629	
Gross profit		3,352			2,575			6,151			4,888	
Research and development (R&D)		535			527			1,045			1,044	
Selling, general and administrative (SG&A)		490			485			954			957	
Acquisition charges		17			—		34			—	
Operating profit		2,310			1,563			4,118			2,887	
Other income (expense), net (OI&E)		69			48			116			128	
Interest and debt expense		141			133			282			261	
Income before income taxes		2,238			1,478			3,952			2,754	
Provision for income taxes		258			183			427			280	
Net income	$	1,980		$	1,295		$	3,525		$	2,474	

Earnings per common share (EPS):												
Basic	$	2.16		$	1.42		$	3.85		$	2.71	
													
Diluted	$	2.14		$	1.41		$	3.82		$	2.69	

Average shares outstanding:												
Basic		912			908			911			909	
													
Diluted		920			912			917			914	

A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following:

Net income	$	1,980		$	1,295		$	3,525		$	2,474	
Income allocated to RSUs		(11)			(7)			(20)			(13)	
Income allocated to common stock for diluted EPS	$	1,969		$	1,288		$	3,505		$	2,461	

See accompanying notes.

2

			For Three Months Ended		For Six Months Ended	
Consolidated Statements of Comprehensive Income			June 30,				June 30,		
(In millions)		2026			2025			2026			2025	
Net income	$	1,980		$	1,295		$	3,525		$	2,474	
Changes in other comprehensive income (loss), net of tax												
Net actuarial losses of defined benefit plans:												
Adjustments		1			(13)			2			(20)	
Recognized within net income		1			4			1			6	
Prior service cost (credit) of defined benefit plans:												
Adjustments		—		—		1			—	
Recognized within net income		—		—		1			—	
Available-for-sale investments and other:												
Adjustments		(1)			—		(3)			(2)	
Other comprehensive income (loss)		1			(9)			2			(16)	
Total comprehensive income	$	1,981		$	1,286		$	3,527		$	2,458	

See accompanying notes.

3

			June 30,		December 31,	
Consolidated Balance Sheets			2026			2025	
(In millions, except par value)						
Assets						
Current assets:						
Cash and cash equivalents	$	3,660		$	3,225	
Short-term investments		3,341			1,656	
Accounts receivable, net of allowances of ($22) and ($22)		2,520			1,963	
Raw materials		467			465	
Work in process		2,407			2,372	
Finished goods		1,731			1,967	
Inventories		4,605			4,804	
Prepaid expenses and other current assets		1,631			2,102	
Total current assets		15,757			13,750	
Property, plant and equipment at cost		17,856			17,682	
Accumulated depreciation		(5,945)			(5,362)	
Property, plant and equipment		11,911			12,320	
Goodwill		4,330			4,330	
Deferred tax assets		1,017			967	
Capitalized software licenses		314			238	
Overfunded retirement plans		316			324	
Other long-term assets		2,237			2,656	
Total assets	$	35,882		$	34,585	

Liabilities and stockholders’ equity						
Current liabilities:						
Current portion of long-term debt	$	1,149		$	500	
Accounts payable		680			756	
Accrued compensation		536			829	
Income taxes payable		70			67	
Accrued expenses and other liabilities		809			1,007	
Total current liabilities		3,244			3,159	
Long-term debt		12,903			13,548	
Underfunded retirement plans		123			124	
Deferred tax liabilities		55			66	
Other long-term liabilities		1,550			1,415	
Total liabilities		17,875			18,312	
Stockholders’ equity:						
Preferred stock, $25 par value. Shares authorized – 10; none issued		—		—	
Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741		1,741			1,741	
Paid-in capital		5,129			4,511	
Retained earnings		53,161			52,236	
Treasury common stock at cost						
Shares: June 30, 2026 – 828; December 31, 2025 – 834		(41,941)			(42,130)	
Accumulated other comprehensive income (loss), net of taxes (AOCI)		(83)			(85)	
Total stockholders’ equity		18,007			16,273	
Total liabilities and stockholders’ equity	$	35,882		$	34,585	

See accompanying notes.

4

			For Six Months Ended	
Consolidated Statements of Cash Flows			June 30,		
(In millions)		2026			2025	
Cash flows from operating activities						
Net income	$	3,525		$	2,474	
Adjustments to net income:						
Depreciation		1,088			884	
Amortization of capitalized software		42			41	
Stock compensation		236			245	
Gains on sales of assets		(13)			—	
Deferred taxes		(66)			(137)	
Increase (decrease) from changes in:						
Accounts receivable		(557)			(215)	
Inventories		199			(285)	
Prepaid expenses and other current assets		(7)			(16)	
Accounts payable and accrued expenses		(24)			(29)	
Accrued compensation		(305)			(255)	
Income taxes payable		116			61	
Changes in funded status of retirement plans		7			(27)	
Other		(18)			(32)	
Cash flows from operating activities		4,223			2,709	
							
Cash flows from investing activities						
Capital expenditures		(1,190)			(2,428)	
Proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives		1,104			260	
Proceeds from asset sales		37			—	
Purchases of short-term investments		(3,342)			(1,839)	
Proceeds from short-term investments		1,679			3,938	
Other		(37)			(13)	
Cash flows from investing activities		(1,749)			(82)	
							
Cash flows from financing activities						
Proceeds from issuance of long-term debt		—		1,199	
Repayment of debt		—		(750)	
Dividends paid		(2,586)			(2,473)	
Stock repurchases		(185)			(955)	
Proceeds from common stock transactions		754			233	
Other		(22)			(37)	
Cash flows from financing activities		(2,039)			(2,783)	

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

435	(156)

3,2253,200

$	3,660	$	3,044

Supplemental cash flow information						
Investment tax credit (ITC) used to reduce income taxes payable	$	301		$	203	
Proceeds from CHIPS Act incentives		1,104			260	
Total cash benefit related to the CHIPS Act	$	1,405		$	463	

See accompanying notes.

5

Notes to financial statements

1.	Description of business, including segment and geographic area information

We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world. We have two reportable segments, Analog and Embedded Processing, each of which represents groups of products that have similar design and development requirements, product characteristics and manufacturing processes. Our segments reflect how our chief operating decision maker (CODM), which is our chief executive officer, allocates resources and measures results.

•	Analog semiconductors change real-world signals, such as sound, temperature, pressure or light, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy, whether the equipment is plugged into a wall or using a battery. Our Analog segment consists of two major product lines: Power and Signal Chain.

•	Embedded Processing products are the digital “brains” of many types of electronic equipment. They are designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application.

We report the results of our remaining business activities in Other. Other includes DLP® products and calculators, which are operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments.

In Other, we also include items that are not used in evaluating the results of or in allocating resources to our segments. Examples of these items include acquisition, integration and restructuring charges, and certain corporate-level items, such as litigation expenses, environmental costs, insurance settlements, and gains and losses from other activities, including asset dispositions. We allocate the remainder of our expenses associated with corporate activities to our operating segments based on specific methodologies, such as percentage of operating expenses or headcount.

Costs incurred by our centralized manufacturing and support organizations, including depreciation, are charged to the operating segments, including those in Other, on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided.

With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the CODM evaluate operating segments using discrete asset information. We have no material intersegment revenue. The accounting policies of the segments are consistent with those described in the significant accounting policies and practices.

Segment information

									For Three Months Ended June 30,										
					2026										2025						
		Analog			Embedded		Other			Total			Analog			Embedded		Other			Total		
					Processing												Processing								
Revenue	$	4,365		$	788		$	310	$	5,463		$	3,452		$	679		$	317		$	4,448		
Cost of revenue		1,636			380			95			2,111			1,395			365			113			1,873		
Gross profit		2,729			408			215			3,352			2,057			314			204			2,575		
R&D		388			129			18			535			383			125			19			527		
SG&A		349			111			30			490			349			104			32			485		
Acquisition charges		—			—			17			17			—			—			—			—		
Operating profit	$	1,992		$	168		$	150	$	2,310		$	1,325		$	85		$	153		$	1,563		

6

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

										For Six Months Ended June 30,										
					2026										2025						
		Analog		Embedded		Other		Total		Analog		Embedded		Other		Total		
				Processing								Processing						
Revenue	$	8,289		$	1,511		$	488		$	10,288		$	6,662		$	1,326		$	529		$	8,517		
Cost of revenue		3,225			754			158			4,137			2,691			740			198			3,629		
Gross profit		5,064			757			330			6,151			3,971			586			331			4,888		
R&D		757			252			36			1,045			752			253			39			1,044		
SG&A		677			215			62			954			688			208			61			957		
Acquisition charges		—		—		34			34			—		—		—		—		
Operating profit	$	3,630		$	290		$	198		$	4,118		$	2,531		$	125		$	231		$	2,887		

Geographic area information

Our estimate for revenue based on the geographic location of our end customers’ headquarters, which represents where critical decisions are made, is as follows:

				For Three Months Ended							For Six Months Ended		
				June 30,										June 30,					
		2026			2025				2026				2025		
Revenue:																							
United States	$	2,131		39 %		$	1,707			38 %		$	3,927			38 %		$	3,225			38 %	
China		1,223		22			985			22			2,247			22			1,811			21	
Rest of Asia		606		11			487			11			1,161			11			925			11	
Europe, Middle East and Africa (a)		1,075		20			891			20			2,145			21			1,827			21	
Japan		330		6			295			7			619			6			570			7	
Rest of world		98		2			83			2			189			2			159			2	
Total revenue	$	5,463		100 %		$	4,448			100 %		$	10,288			100 %		$	8,517			100 %	

(a)	Revenue from end customers headquartered in Germany was 9% and 10% in the second quarters of 2026 and 2025, respectively, and 10% in the first six months of both 2026 and 2025.

2.	Basis of presentation and significant accounting policies and practices

Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and on the same basis as the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2025. The Consolidated Statements of Income, Comprehensive Income and Cash Flows for the periods ended June 30, 2026 and 2025, and the Consolidated Balance Sheet as of June 30, 2026, are not audited but reflect all adjustments that are of a normal recurring nature and are necessary for a fair statement of the results of the periods shown. Certain information and note disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the consolidated interim financial statements do not include all of the information and notes required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2025. The results for the three- and six-month periods are not necessarily indicative of a full year’s results.

7

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Significant accounting policies and practices

Earnings per share (EPS)

We use the two-class method for calculating EPS because the restricted stock units (RSUs) we grant are participating securities containing nonforfeitable rights to receive dividend equivalents. Under the two-class method, a portion of net income is allocated to RSUs and excluded from the calculation of income allocated to common stock.

Computation and reconciliation of earnings per common share are as follows:

						For Three Months Ended June 30,					
				2026								2025				
		Net Income	Shares			EPS		Net Income	Shares			EPS	
Basic EPS:																
Net income	$	1,980							$	1,295						
Income allocated to RSUs		(11)								(7)						
Income allocated to common stock	$	1,969		912	$	2.16		$	1,288		908	$	1.42	
																
Dilutive effect of stock compensation plans				8								4				
																
Diluted EPS:																
Net income	$	1,980							$	1,295						
Income allocated to RSUs		(11)								(7)						
Income allocated to common stock	$	1,969		920	$	2.14		$	1,288		912	$	1.41	
													
						For Six Months Ended June 30,					
				2026								2025				
		Net Income	Shares			EPS		Net Income	Shares			EPS	
Basic EPS:																
Net income	$	3,525							$	2,474						
Income allocated to RSUs		(20)								(13)						
Income allocated to common stock	$	3,505		911	$	3.85		$	2,461		909	$	2.71	
																
Dilutive effect of stock compensation plans				6								5				
																
Diluted EPS:																
Net income	$	3,525							$	2,474						
Income allocated to RSUs		(20)								(13)						
Income allocated to common stock	$	3,505		917	$	3.82		$	2,461		914	$	2.69	

Potentially dilutive securities excluded from the computation of diluted earnings per common share during the second quarter of 2026 were not material. Potentially dilutive securities representing 12 million shares of common stock that were outstanding during the second quarter of 2025, and 3 million and 12 million shares outstanding during the first six months of 2026 and 2025, respectively, were excluded from the computation of diluted earnings per common share during these periods because their effect would have been anti-dilutive.

Derivatives and hedging

We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments.

8

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees. We use total return swaps to economically hedge this exposure and offset the related compensation expense, recognizing changes in the fair value of the swaps and the related deferred compensation liabilities in SG&A.

In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt.

The results of these derivative transactions were not material. We do not use derivatives for speculative or trading purposes.

Fair values of financial instruments

The fair values of our derivative financial instruments were not material as of June 30, 2026. Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. As of June 30, 2026, the carrying value of long-term debt, including the current portion, was $14.05 billion, and the estimated fair value was $ 13.09 billion. The estimated fair value is measured using broker-dealer quotes, which are Level 2 inputs. See Note 4 for a description of fair value and the definition of Level 2 inputs.

Changes in accounting standards – standards not yet adopted

We are currently evaluating the potential impact of the following Accounting Standards Updates (ASU) on our financial statements and related disclosures. We plan to adopt these ASUs as of their effective dates.

	ASU			Description								Effective for Period Ending	
	ASU No. 2024-03	Income Statement – Reporting Comprehensive Income – Expense Disaggregation		December 31, 2027	
				Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses							
	ASU No. 2025-06	Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):			March 31, 2028	
				Targeted Improvements to the Accounting for Internal-Use Software							
	ASU No. 2025-10	Government Grants (Topic 832): Accounting for Government Grants Received by		March 31, 2029	
				Business Entities														
3. Income taxes															
																
Provision for income taxes is based on the following:														
							For Three Months Ended			For Six Months Ended	
							June 30,					June 30,		
							2026			2025			2026			2025	
Taxes calculated using the estimated annual effective tax rate	$	309		$	199		$	538		$	365	
Discrete tax items				(51)			(16)			(111)			(85)	
Provision for income taxes		$	258		$	183		$	427		$	280	

Effective tax rate				12 %			12 %			11 %			10 %	
The effective tax rate differs from the 21% U.S. statutory corporate tax rate due to the effect of U.S. tax benefits.						
					9													

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

4.	Valuation of debt and equity investments and certain liabilities

Investments measured at fair value

Money market funds, debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. We classify all debt investments as available-for-sale. Unrealized gains and losses are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income.

Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A.

Other investments

Our other investments include equity-method investments and nonmarketable investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other nonmarketable securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results. Nonmarketable securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on nonmarketable investments are recognized in OI&E.

Details of our investments are as follows:

				June 30, 2026						December 31, 2025				
	Cash and Cash		Short-Term		Other Long-	Cash and Cash			Short-Term		Other Long-		
		Equivalents		Investments		Term Assets		Equivalents			Investments		Term Assets		
Measured at fair value:																			
Money market funds	$	823		$	—	$	—	$	844	$	—	$	—		
Corporate obligations		541			1,013			—		517			522			—		
U.S. government and agency securities		1,659			2,032			—		1,296			1,035			—		
Non-U.S. government and agency		249			296			—		184			99			—		
securities																		
Mutual funds		—		—		11			—			—		11		
Total		3,272			3,341			11			2,841			1,656			11		
																			
Other investments		—		—		4			—			—		5		
																			
Cash on hand		388			—			—			384			—			—		
Total	$	3,660		$	3,341		$	15		$	3,225	$	1,656		$	16		

As of June 30, 2026, and December 31, 2025, unrealized gains and losses associated with our debt investments were not material. We did not recognize any credit losses related to debt investments for the first six months of 2026 and 2025.

The following table presents the aggregate maturities of our debt investments as of June 30, 2026:

		Fair Value	
One year or less	$	5,202	
One to two years		588	

Proceeds from sales, redemptions and maturities of short-term debt investments were $636 million and $1.13 billion for the second quarters of 2026 and 2025, respectively, and $1.68 billion and $3.94 billion for the first six months of 2026 and 2025, respectively. Gross realized gains and losses from these sales were not material.

10

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Fair-value considerations

We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy described below indicates the inputs used to estimate fair-value measurements.

•	Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the measurement date.

•	Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the measurement date through correlation with market data. Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active and models or other pricing methodologies that do not require significant judgment. We utilize a third-party data service to provide Level 2 valuations, and we verify these valuations for reasonableness.

•	Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. As of June 30, 2026, and December 31, 2025, we had no Level 3 assets or liabilities.

The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value.

				June 30, 2026						December 31, 2025		
		Level 1		Level 2		Total		Level 1				Level 2		Total	
Assets:																			
Money market funds	$	823		$	—	$	823		$	844	$	—	$	844	
Corporate obligations		—		1,554			1,554			—				1,039			1,039	
U.S. government and agency securities		3,342			349			3,691			1,932				399			2,331	
Non-U.S. government and agency securities		—		545			545			—				283			283	
Mutual funds		11			—			11			11				—			11	
Total assets	$	4,176		$	2,448		$	6,624		$	2,787	$	1,721		$	4,508	

Liabilities:																			
Deferred compensation	$	500		$	—		$	500		$	492			$	—		$	492	
Total liabilities	$	500		$	—	$	500		$	492	$	—	$	492	
																			
		11																	

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

5.	Postretirement benefit plans

Expenses related to defined benefit and retiree health care benefit plans are as follows:

		U.S. Defined Benefit			U.S. Retiree Health Care				Non-U.S. Defined Benefit	
For Three Months Ended June 30,		2026		2025			2026			2025				2026			2025	
Service cost	$	1		$	2		$	—	$	1		$	4		$	3	
Interest cost		5			7			3			3			17			15	
Expected return on plan assets		(4)			(6)			(2)			(3)			(20)			(17)	
Recognized net actuarial losses (gains)		1			2			—		(1)			(1)			1	
Amortization of prior service cost (credit)		—			—			—			—			1			—	
Net periodic benefit costs (credits)		3			5			1			—		1			2	
Settlement losses (gains)		2			3			—			—			(1)			—	
Total, including other postretirement losses (gains) $	5		$	8		$	1		$	—	$	—	$	2	
																
		U.S. Defined Benefit			U.S. Retiree Health Care				Non-U.S. Defined Benefit	
For Six Months Ended June 30,		2026		2025			2026			2025				2026			2025	
Service cost	$	3		$	4		$	—	$	1		$	8		$	7	
Interest cost		11			13			6			6			33			29	
Expected return on plan assets		(10)			(10)			(5)			(6)			(39)			(35)	
Recognized net actuarial losses (gains)		2			4			—		(1)			(2)			2	
Amortization of prior service cost (credit)		—			—			—			—			2			—	
Net periodic benefit costs (credits)		6			11			1			—		2			3	
Settlement losses (gains)		2			3			—			—			(1)			—	
Total, including other postretirement losses (gains) $	8		$	14		$	1		$	—	$	1		$	3	

6. Debt and lines of credit

Short-term borrowings

We maintain a line of credit to provide additional liquidity through bank loans and, if necessary, to support commercial paper borrowings. As of June 30, 2026, the aforementioned line of credit was a variable-rate, revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $1 billion until March 2027. The interest rate on borrowings under this credit facility, if drawn, is indexed to the applicable Term Secured Overnight Financing Rate (Term SOFR). As of June 30, 2026, our credit facility was undrawn, and we had no commercial paper outstanding.

In June 2026, we entered into a 364-day delayed draw term loan credit facility for borrowings up to $ 5 billion to support the Silicon Labs acquisition consideration and related transaction expenses. The availability of funding is conditioned on the consummation of the planned acquisition of Silicon Labs. As of June 30, 2026, there were no outstanding borrowings on the delayed draw term loan credit facility.

12

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Long-term debt outstanding is as follows:

		June 30,		December 31,	
		2026			2025	
Notes due 2026 at 1.125%	$	500		$	500	
Notes due 2027 at 4.60%		650			650	
Notes due 2027 at 2.90%		500			500	
Notes due 2028 at 4.60%		700			700	
Notes due 2029 at 4.60%		650			650	
Notes due 2029 at 2.25%		750			750	
Notes due 2030 at 1.75%		750			750	
Notes due 2030 at 4.50%		550			550	
Notes due 2031 at 1.90%		500			500	
Notes due 2032 at 3.65%		400			400	
Notes due 2033 at 4.90%		950			950	
Notes due 2034 at 4.85%		600			600	
Notes due 2035 at 5.10%		650			650	
Notes due 2039 at 3.875%		750			750	
Notes due 2048 at 4.15%		1,500			1,500	
Notes due 2051 at 2.70%		500			500	
Notes due 2052 at 4.10%		300			300	
Notes due 2053 at 5.00%		650			650	
Notes due 2054 at 5.15%		750			750	
Notes due 2063 at 5.05%		1,550			1,550	
Total debt		14,150			14,150	
Net unamortized discounts, premiums and issuance costs		(98)			(102)	
Total debt, including net unamortized discounts, premiums and issuance costs		14,052			14,048	
Current portion of long-term debt		(1,149)			(500)	
Long-term debt	$	12,903		$	13,548	

Interest and debt expense was $141 million and $133 million for the second quarters of 2026 and 2025, respectively, and $282 million and $261 million for the first six months of 2026 and 2025, respectively. This is inclusive of amortized discounts, premiums and issuance and other related costs. Capitalized interest was $3 million and $2 million for the second quarters of 2026 and 2025, respectively, and $6 million for the first six months of both 2026 and 2025.

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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

7. Stockholders’ equity

Changes in equity are as follows:

	Common Stock	Paid-in Capital		Retained		Treasury		AOCI		
				Earnings	Common Stock				
Balance, December 31, 2025	$	1,741		$	4,511		$	52,236		$	(42,130)		$	(85)		
																
2026																
Net income		—		—		1,545			—		—		
Dividends declared and paid ($1.42 per share)		—		—		(1,291)			—		—		
Common stock issued for stock-based awards		—		105			—		204			—		
Stock repurchases		—		—		—		(158)			—		
Stock compensation		—		109			—		—		—		
Other comprehensive income (loss), net of taxes		—		—		—		—		1		
Dividend equivalents on RSUs		—		—		(8)			—		—		
Other		—		(3)			1			—		—		
Balance, March 31, 2026		1,741			4,722			52,483			(42,084)			(84)		
																
Net income		—		—		1,980			—		—		
Dividends declared and paid ($1.42 per share)		—		—		(1,295)			—		—		
Common stock issued for stock-based awards		—		279			—		166			—		
Stock repurchases		—		—		—		(23)			—		
Stock compensation		—		127			—		—		—		
Other comprehensive income (loss), net of taxes		—		—		—		—		1		
Dividend equivalents on RSUs		—		—		(7)			—		—		
Other		—		1			—		—		—		
Balance, June 30, 2026	$	1,741		$	5,129		$	53,161		$	(41,941)		$	(83)		

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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

	Common Stock	Paid-in Capital		Retained		Treasury		AOCI		
				Earnings	Common Stock				
Balance, December 31, 2024	$	1,741		$	3,935		$	52,262		$	(40,895)		$	(140)		
																
2025																
Net income		—		—		1,179			—		—		
Dividends declared and paid ($1.36 per share)		—		—		(1,238)			—		—		
Common stock issued for stock-based awards		—		8			—		110			—		
Stock repurchases		—		—		—		(657)			—		
Stock compensation		—		116			—		—		—		
Other comprehensive income (loss), net of taxes		—		—		—		—		(7)		
Dividend equivalents on RSUs		—		—		(7)			—		—		
Other		—		(1)			—		—		—		
Balance, March 31, 2025		1,741			4,058			52,196			(41,442)			(147)		
																
Net income		—		—		1,295			—		—		
Dividends declared and paid ($1.36 per share)		—		—		(1,235)			—		—		
Common stock issued for stock-based awards		—		59			—		56			—		
Stock repurchases		—		—		—		(290)			—		
Stock compensation		—		129			—		—		—		
Other comprehensive income (loss), net of taxes		—		—		—		—		(9)		
Dividend equivalents on RSUs		—		—		(7)			—		—		
Other		—		(1)			—		—		—		
Balance, June 30, 2025	$	1,741		$	4,245		$	52,249		$	(41,676)		$	(156)		

8. Contingencies

Indemnification guarantees

We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result.

Warranty costs/product liabilities

Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. Product claim consideration may exceed the price of our products. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our consolidated financial statements. We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability.

General

We are subject to various legal and administrative proceedings. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our consolidated financial statements.

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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

9.	Supplemental financial information

Acquisition of Silicon Labs

As announced on February 4, 2026, we have entered into a definitive agreement to acquire Silicon Labs for $231.00 per share in an all-cash transaction, representing a total enterprise value of approximately $ 7.5 billion. Under the terms of the agreement, Silicon Labs stockholders will receive $231.00 in cash for each share of Silicon Labs common stock they hold at the time of closing, which is expected in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions. We expect to fund the transaction with a combination of cash on hand and debt financing. During the second quarter and first six months of 2026, we incurred $17 million and $34 million of acquisition charges, respectively.

Prepaid expenses and other current assets

		June 30,		December 31,		
		2026			2025		
CHIPS Act incentives	$	1,005		$	1,709		
Other		626			393		
Total	$	1,631		$	2,102		
Other long-term assets							
							
		June 30,		December 31,		
		2026			2025		
CHIPS Act incentives	$	1,158		$	1,639		
Other		1,079			1,017		
Total	$	2,237		$	2,656		

Details on amounts reclassified out of accumulated other comprehensive income (loss), net of taxes, to net income

Our Consolidated Statements of Comprehensive Income include items that have been recognized within net income during the second quarters of 2026 and 2025. The table below details where these transactions are recorded in our Consolidated Statements of Income.

	For Three Months Ended				For Six Months Ended					
		June 30,				June 30,			Impact to Related Statement of Income		
	2026			2025				2026		2025					
													Lines		
Net actuarial losses of defined benefit															
plans:															
Recognized net actuarial losses and	$	1		$	5		$	1		$	8		Decrease (increase) to OI&E		
settlement losses (a)															
Tax effect		—		(1)			—		(2)		(Decrease) increase to provision for		
											income taxes		
Recognized within net income, net of	$	1		$	4		$	1		$	6		Decrease (increase) to net income		
taxes															

Prior service cost (credit) of defined															
benefit plans:															
Amortization of prior service cost (credit)	$	1		$	—	$	2		$	—		Decrease (increase) to OI&E		
(a)														
Tax effect		(1)			—			(1)			—		(Decrease) increase to provision for		
													income taxes		
Recognized within net income, net of	$	—	$	—	$	1		$	—		Decrease (increase) to net income		
taxes													

(a) Detailed in Note 5

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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Effect on shares outstanding and treasury shares

The following table reflects the changes in treasury shares:

		2026		
Balance, January 1	834		
Repurchases	1		
Shares issued for stock compensation		(4)		
Balance, March 31	831		
Repurchases		—		
Shares issued for stock compensation		(3)		
Balance, June 30	828		
	17			

ITEM 2. Management’s discussion and analysis of financial condition and results of operations

Overview

We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world. Technology is the foundation of our company, but ultimately, our objective and the best metric for owners to measure our progress is through the growth of free cash flow per share over the long term.

Our strategy to maximize long-term free cash flow per share growth has three elements:

1.	A great business model that is focused on analog and embedded processing products and built around four sustainable competitive advantages. The four sustainable competitive advantages are powerful in combination and provide tangible benefits:

(a)	A strong foundation of manufacturing and technology that provides lower costs and greater control of our supply chain.

(b)	A broad portfolio of analog and embedded processing products that offers more opportunity per customer and more value for our investments.

(c)	The reach of our market channels that gives access to more customers and more of their design projects, leading to better insight and knowledge of customer needs and the opportunity to sell more of our products into each design.

(d)	Diversity and longevity of our products, markets and customer positions that provide less single point dependency and longer returns on our investments.

Together, these competitive advantages help position TI in a unique class of companies capable of generating and returning significant amounts of cash for our owners. We make our investments with an eye towards long-term strengthening and leveraging of these advantages.

2.	Discipline in allocating capital to the best opportunities. This spans how we select R&D projects, develop new capabilities, invest in manufacturing capacity or how we think about acquisitions and returning cash to our owners.

3.	Efficiency, which means constantly striving for more output for every dollar spent.

We believe that our business model with the combined effect of our four competitive advantages sets TI apart from our peers and will for a long time to come. We will invest to strengthen our competitive advantages, be disciplined in capital allocation and stay diligent in our pursuit of efficiencies. Finally, we will remain focused on the belief that long-term growth of free cash flow per share is the ultimate measure to generate value.

Market and business characteristics

Markets for our products

The markets for our products are industrial, automotive, data center, personal electronics and communications equipment. See our 2025 Form 10-K for more information.

Semiconductor cycle

The semiconductor cycle refers to the ebb and flow of supply and demand and the building and depleting of inventories. It has been characterized by periods of tight supply caused by strengthening demand and/or insufficient manufacturing capacity, followed by periods of surplus inventory caused by weakening demand and/or excess manufacturing capacity. These are typically referred to as upturns and downturns in the semiconductor cycle. Semiconductor cycles are affected by the significant time and money required to build and maintain semiconductor manufacturing facilities.

Seasonality

Our revenue is subject to some seasonal variation. Historically, our sequential revenue growth rate tends to be weaker in the first and fourth quarters when compared with the second and third quarters.

18

Manufacturing

We invest to make manufacturing and technology a core competitive advantage. The strategic decision to own our manufacturing, process and packaging technology provides us with tangible benefits of lower manufacturing costs and greater control of our supply chain and provides our customers with geopolitically dependable capacity. We own and operate both wafer fabrication and assembly/test facilities in North America, Asia, Japan and Europe. We have focused on creating a competitive structural cost advantage by investing in our 300mm wafer production, which describes the diameter of the wafer on which our chips are produced, and costs about 40% less than a chip built on a 200mm wafer. In addition, we selectively use capacity of outside suppliers, commonly known as foundries and subcontractors.

We continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity plan. We have invested in manufacturing capacity to support customer demand, enable external foundry transfers and prepare new factories to have cleanroom space available to support future growth. These investments have uniquely positioned TI to deliver dependable, low-cost 300mm capacity with the ability to equip and ramp factories to support customer demand. We believe this approach supports free cash flow per share growth across a range of market conditions.

With our planned capacity expansions to support demand over time, we expect our internal sourcing to continue to increase. We expect to continue to maintain sufficient internal manufacturing capacity to meet the majority of our production needs and to obtain manufacturing equipment to support new technology developments and revenue growth.

Inventory

Our objectives for inventory are to maintain high levels of customer service, maintain dependable and competitive lead times, minimize inventory obsolescence and improve manufacturing asset utilization. To meet these objectives and to allow greater flexibility in periods of high demand, our strategy is to build ahead of demand our broad-based products that are used across a diverse set of applications and customers and have low risk of obsolescence. Inventory levels will vary based on market conditions and seasonality. We adjust factory loadings as needed to execute on this inventory strategy.

Results of operations

Management’s discussion and analysis of financial condition and results of operations (MD&A) should be read in conjunction with the financial statements and the related notes that appear elsewhere in this document. In the following discussion of our results of operations:

•	Our segments represent groups of similar products that are combined on the basis of similar design and development requirements, product characteristics, manufacturing processes and distribution channels, and how management allocates resources and measures results. See Note 1 to the financial statements for more information regarding our segments.

•	When we discuss our results:

◦	Unless otherwise noted, changes in our revenue are attributable to changes in customer demand, which are evidenced by fluctuations in shipment volumes. Upturns in the semiconductor cycle are often characterized by rising customer demand, which drives higher revenue, while downturns in the semiconductor cycle are characterized by weakening customer demand, which results in lower revenue.

◦	New products do not tend to have a significant impact on our revenue in any given period because we sell such a large number of products.

◦	From time to time, our revenue and gross profit are affected by changes in demand for higher-priced or lower-priced products, which we refer to as changes in the “mix” of products shipped.

19

◦	Because we own much of our manufacturing capacity, a significant portion of our operating cost is fixed. When factory loadings decrease, our fixed costs are spread over reduced output and, absent other circumstances, our profit margins decrease. Conversely, as factory loadings increase, our fixed costs are spread over increased output and, absent other circumstances, our profit margins increase.

◦	Our LFAB facility, which primarily supports our Embedded Processing business, was purchased as an operating fab and is continuing to ramp production, so we expect factory loadings to increase over time. As LFAB ramps, we expect Embedded to carry manufacturing costs that disproportionately benefit Embedded Processing operating profit as compared to Analog.

•	For an explanation of free cash flow, see the Non-GAAP financial information section.

•	All dollar amounts in the tables are stated in millions of U.S. dollars.

Performance summary

Our second quarter revenue was $5.46 billion, net income was $1.98 billion and earnings per share (EPS) were $2.14.

Revenue increased 13% sequentially and 23% from the same quarter a year ago with broad growth led by industrial, data center and automotive.

Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $6.5 billion.

Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $3.3 billion in capital expenditures and returned $5.8 billion to shareholders.

Acquisition of Silicon Labs

As announced on February 4, 2026, we have entered into a definitive agreement to acquire Silicon Labs for $231.00 per share in an all-cash transaction, representing a total enterprise value of approximately $ 7.5 billion. Under the terms of the agreement, Silicon Labs stockholders will receive $231.00 in cash for each share of Silicon Labs common stock they hold at the time of closing, which is expected in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions. We expect to fund the transaction with a combination of cash on hand and debt financing.

In June 2026, we entered into a 364-day delayed draw term loan credit facility for borrowings up to $5 billion to support the Silicon Labs acquisition consideration and related transaction expenses. As of June 30, 2026, there were no outstanding borrowings on the delayed draw term loan credit facility.

Details of financial results – second quarter 2026 compared with second quarter 2025

Revenue of $5.46 billion increased $1.02 billion, or 23%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment.

Gross profit of $ 3.35 billion was up $777 million, or 30%, primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions. As a percentage of revenue, gross profit increased to 61.4% from 57.9%.

Operating expenses (R&D and SG&A) were $1.03 billion compared with $1.01 billion.

Acquisition charges were $17 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.

Operating profit was $2.31 billion, or 42.3% of revenue, compared with $1.56 billion, or 35.1% of revenue. This change was primarily due to higher revenue and associated gross profit.

20

OI&E was $69 million of income compared with $48 million of income. This increase was primarily due to higher interest income.

Interest and debt expense of $141 million increased $8 million. See Note 6 to the financial statements.

Our provision for income taxes was $258 million compared with $183 million. This increase was primarily due to higher income before income taxes, partially offset by higher discrete tax benefits of $35 million, related to stock-based compensation. Our effective tax rate, which includes discrete tax items, was 12% in both periods.

Net income was $1.98 billion compared with $1.30 billion. EPS was $2.14 compared with $1.41.

Second quarter 2026 segment results

Our segment results compared with the year-ago quarter are as follows:

Analog (includes Power and Signal Chain product lines)

		Q2 2026		Q2 2025	Change	
Revenue	$	4,365		$	3,452		26 %	
Operating profit		1,992			1,325		50 %	
Operating profit % of revenue		45.6 %			38.4 %			

Analog revenue increased in both product lines, led by Signal Chain, due to higher demand. Operating profit increased due to higher revenue and associated gross profit.

Embedded Processing (includes microcontrollers and processors)

		Q2 2026		Q2 2025	Change	
Revenue	$	788		$	679		16 %	
Operating profit		168			85		98 %	
Operating profit % of revenue		21.3 %			12.5 %			

Embedded Processing revenue increased due to higher demand. Operating profit increased primarily due to higher revenue and associated gross profit.

Other (includes DLP® products and calculators)

		Q2 2026		Q2 2025	Change	
Revenue	$	310		$	317		(2)%	
Operating profit *		150			153		(2)%	
Operating profit % of revenue		48.4 %			48.3 %			

*	Includes Acquisition charges

Other revenue decreased $7 million, and operating profit decreased $3 million.

Details of financial results – first six months of 2026 compared with first six months of 2025

Revenue of $10.29 billion increased $1.77 billion, or 21%, due to increased demand in our Analog segment and, to a lesser extent, in our Embedded Processing segment.

Gross profit of $ 6.15 billion was up $1.26 billion, or 26%, primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions. As a percentage of revenue, gross profit increased to 59.8% from 57.4%.

Operating expenses were $2.00 billion in both periods.

21

Acquisition charges were $34 million due to transaction-related costs associated with our planned acquisition of Silicon Labs.

Operating profit was $4.12 billion, or 40.0% of revenue, compared with $2.89 billion, or 33.9% of revenue. This change was due to higher revenue and associated gross profit.

OI&E was $116 million of income compared with $128 million of income. This decrease was primarily due to lower interest income.

Interest and debt expense of $282 million increased $21 million.

Our provision for income taxes was $427 million compared with $280 million. This increase was primarily due to higher income before income taxes. Our effective tax rate, which includes discrete tax items, was 11% compared with 10%.

Net income was $3.53 billion compared with $2.47 billion. EPS was $3.82 compared with $2.69.

Year-to-date segment results

Our segment results compared with the year-ago period are as follows:

Analog

		YTD 2026		YTD 2025	Change	
Revenue	$	8,289		$	6,662		24 %	
Operating profit		3,630			2,531		43 %	
Operating profit % of revenue		43.8 %			38.0 %			

Analog revenue increased in both product lines, led by Signal Chain, due to higher demand. Operating profit increased due to higher revenue and associated gross profit.

Embedded Processing

		YTD 2026		YTD 2025	Change	
Revenue	$	1,511		$	1,326		14 %	
Operating profit		290			125		132 %	
Operating profit % of revenue		19.2 %			9.4 %			

Embedded Processing revenue increased due to higher demand. Operating profit increased primarily due to higher revenue and associated gross profit.

Other

		YTD 2026		YTD 2025	Change	
Revenue	$	488		$	529		(8)%	
Operating profit *		198			231		(14)%	
Operating profit % of revenue		40.6 %			43.7 %			

*	Includes Acquisition charges

Other revenue decreased $41 million, and operating profit decreased $33 million.

Financial condition

At the end of the second quarter of 2026, total cash (cash and cash equivalents plus short-term investments) was $7.00 billion, an increase of $2.12 billion from the end of 2025.

22

Accounts receivable were $2.52 billion, an increase of $ 557 million compared with the end of 2025. Days sales outstanding in the second quarter of 2026 were 42 compared with 40 at the end of 2025.

Inventory was $4.61 billion, a decrease of $199 million from the end of 2025. Days of inventory for the second quarter of 2026 were 196 compared with 222 at the end of 2025, which reflects the continued execution of our inventory strategy.

Liquidity and capital resources

Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments and access to debt markets. We also have a variable-rate, revolving credit facility. As of June 30, 2026, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first six months of 2026 were

$4.22 billion, an increase of $1.51 billion from the year-ago period due to higher net income and non-cash items, as well as lower cash used for working capital. Cash flows from operating activities for the first six months of 2026 and 2025 include cash benefits of $301 million and $203 million, respectively, from the U.S. CHIPS and Science Act (CHIPS Act) investment tax credit (ITC) used to reduce income taxes payable.

Investing activities for the first six months of 2026 used $1.75 billion compared with $82 million in the year-ago period. Capital expenditures were $1.19 billion compared with $2.43 billion in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods. In 2026, CHIPS Act incentives provided cash proceeds of $1.10 billion compared with $260 million in the year-ago period. Short-term investments used cash of $1.66 billion compared with $2.10 billion of cash provided in the year-ago period.

Consistent with our capital management strategy, we expect between $2 billion to $3 billion of capital expenditures in 2026. Beyond 2026, capital expenditures will be dependent on revenue and growth expectations. We expect to continue benefiting from the CHIPS Act. This includes the 35% ITC on qualifying manufacturing investments as well as direct funding of up to $1.6 billion, of which we have received $630 million, for our three large-scale 300mm wafer fabs located in Sherman, Texas, and Lehi, Utah.

Financing activities for the first six months of 2026 used $2.04 billion compared with $2.78 billion in the year-ago period. We received net

proceeds of $1.20 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $750 million in the year-ago period.

Dividends paid were $2.59 billion compared with $2.47 billion in the year-ago period, reflecting an increased dividend rate. We used

$185 million to repurchase 0.9 million shares of our common stock compared with $955 million to repurchase 5.4 million shares in the year-

ago period. Employee exercises of stock options provided cash proceeds of $754 million compared with $233 million in the year-ago period.

We had $3.66 billion of cash and cash equivalents and $3.34 billion of short-term investments as of June 30, 2026. We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.

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Non-GAAP financial information

This MD&A includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (GAAP). Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.

We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.

Reconciliation to the most directly comparable GAAP measures is provided in the table below.

		For 12 Months Ended			
		June 30,				
		2026			2025		Change	
Cash flow from operations (GAAP) *	$	8,667		$	6,439	35 %	
Capital expenditures		(3,312)			(4,936)			
Proceeds from CHIPS Act incentives		1,179			260			
Free cash flow (non-GAAP)	$	6,534		$	1,763	271 %	

Revenue	$	19,453		$	16,675			

Cash flow from operations as a percentage of revenue (GAAP)		44.6 %			38.6 %			
Free cash flow as a percentage of revenue (non-GAAP)		33.6 %			10.6 %			

*	Includes cash benefits of $433 million and $479 million from the CHIPS Act ITC used to reduce income taxes payable for the twelve months ended June 30, 2026 and 2025, respectively.

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ITEM 4. Controls and procedures

An evaluation as of the end of the period covered by this report was carried out under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that those disclosure controls and procedures were effective. In addition, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. Legal proceedings

Information with respect to legal proceedings can be found in Note 8 to the financial statements.

Pursuant to SEC regulation, we have elected to use a disclosure threshold of $1 million in monetary sanctions for environmental proceedings involving a governmental authority.

ITEM 1A. Risk factors

Information concerning our risk factors is contained in Item 1A of our Form 10-K for the year ended December 31, 2025, and is incorporated by reference herein.

ITEM 2. Unregistered sales of equity securities and use of proceeds

The following table contains information regarding our purchases of our common stock during the quarter.

ISSUER PURCHASES OF EQUITY SECURITIES

							Total Number of Shares		Approximate Dollar Value of		
							Purchased as Part of				
									Shares that May Yet Be		
		Total Number of Shares			Average Price	Publicly Announced				
Period								Purchased Under the Plans		
		Purchased			Paid per Share		Plans or Programs (a)		or Programs (a)		
April 1 - 30, 2026	114,386	$	203.77		114,386	$   18.61	billion		
May 1 - 31, 2026	—			—	—	18.61	billion		
June 1 - 30, 2026	—			—	—	18.61	billion (b)		
Total	114,386					114,386					

(a)	All open-market purchases during the quarter were made under the authorizations from our board of directors to purchase up to $12.0 billion and $15.0 billion of additional shares of TI common stock announced September 20, 2018, and September 15, 2022, respectively. No expiration date has been specified for these authorizations.

(b)	As of June 30, 2026, this amount consisted of the remaining portion of the $12.0 billion authorized in September 2018 and the $15.0 billion authorized in September 2022.

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ITEM 6. Exhibits
Designation of Exhibits in																		
This Report	Description of Exhibit		
3(a)	Restated Certificate of Incorporation of the Registrant, dated April 18, 1985, as amended (incorporated by reference		
	to Exhibit 3(a) of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).				
					
3(b)	By-Laws of the Registrant (incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K		
	filed February 6, 2026).			

31(a)	Certification of Chief Executive Officer of Periodic Report Pursuant to Rule 13a-14(a) or Rule 15d-14(a).†			
31(b)	Certification of Chief Financial Officer of Periodic Report Pursuant to Rule 13a-14(a) or Rule 15d-14(a).†		
																		
32(a)	Certification by Chief Executive Officer of Periodic Report Pursuant to 18 U.S.C. Section 1350.†			
32(b)	Certification by Chief Financial Officer of Periodic Report Pursuant to 18 U.S.C. Section 1350.†		
																		
101.ins	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL		
	tags are embedded within the Inline XBRL document.†			

101.def	XBRL Taxonomy Extension Definition Linkbase Document.†		
																		
101.sch	XBRL Taxonomy Extension Schema Document.†			
101.cal	XBRL Taxonomy Extension Calculation Linkbase Document.†		
																		
101.lab	XBRL Taxonomy Extension Label Linkbase Document.†			
101.pre	XBRL Taxonomy Extension Presentation Linkbase Document.†		

104	Cover Page Interactive Data File (embedded within the Inline XBRL document).†

†	Filed or furnished herewith.

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Notice regarding forward-looking statements

This report includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe TI’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:

•	Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies;

•	Our ability to compete in products and prices in an intensely competitive industry;

•	Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts;

•	Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments;

•	Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties;

•	Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings;

•	Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity;

•	Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology;

•	Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession;

•	Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts;

•	Financial difficulties of our distributors or semiconductor distributors’ promotion of competing product lines to our detriment; or disputes with current or former distributors;

•	Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment;

•	Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability;

•	Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets;

•	Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims;

•	Our ability to make principal and interest payments on our debt when due;

•	Instability in the global credit and financial markets; and

•	Impairments of our non-financial assets.

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For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of our most recent Form 10-K. The forward-looking statements included in this report are made only as of the date of this report, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.

29

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TEXAS INSTRUMENTS INCORPORATED

By:	/s/ Rafael R. Lizardi

Rafael R. Lizardi, Senior Vice President and Chief
Financial Officer

Date: July 24, 2026

Exhibit 31(a)

CERTIFICATIONS

I, Haviv Ilan, certify that:

1.	I have reviewed this report on Form 10-Q of Texas Instruments Incorporated;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 24, 2026

/s/ Haviv Ilan

Haviv Ilan
Chairman, President and
Chief Executive Officer

Exhibit 31(b)

CERTIFICATIONS

I, Rafael R. Lizardi, certify that:

1.	I have reviewed this report on Form 10-Q of Texas Instruments Incorporated;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 24, 2026

/s/ Rafael R. Lizardi

Rafael R. Lizardi
Senior Vice President and
Chief Financial Officer

Exhibit 32(a)

Certification of Periodic Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Haviv Ilan, Chairman, President and Chief Executive Officer of Texas Instruments Incorporated (the “Company”), hereby certifies that, to his knowledge:

(i)	the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: July 24, 2026

/s/ Haviv Ilan

Haviv Ilan
Chairman, President and
Chief Executive Officer

Exhibit 32(b)

Certification of Periodic Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Rafael R. Lizardi, Senior Vice President and Chief Financial Officer of Texas Instruments Incorporated (the “Company”), hereby certifies that, to his knowledge:

(i)	the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: July 24, 2026

/s/ Rafael R. Lizardi

Rafael R. Lizardi
Senior Vice President and
Chief Financial Officer