TI CEO: Industrial Revenue Only Now Back To 2022 Level, And 2027 Supply Talks Carry Pricing
Haviv Ilan said analog prices rose only slightly in the second half of 2026 and promised a 2027 pricing update on the January call.
Texas Instruments CEO Haviv Ilan said on the company's third-quarter earnings call that industrial revenue has only now returned to the level it hit in the third quarter of 2022, "the first time we created a new PIC in industrial after four years." He also said 2027 supply discussions with customers have "a pricing element to it," with an update due on the January call.
What Ilan said on the call
Ilan said industrial revenue grew more than 40% year on year in the quarter and was up about 10% from the prior quarter. Asked whether that recovery was cyclical or lasting, he said systems customers design today carry more chip content than those of four years ago, and that TI has won a larger share per system.
Asked by a JPMorgan analyst about annual pricing talks, Ilan said most pricing is settled once a year. Analog prices moved up a little in the second half of 2026, he said, after a flat first half, which he called "not very significant for this year."
For 2027, he said TI is now discussing with customers what supply they want guaranteed, and that discussion "has a pricing element to it." He said TI would report more when it gives guidance on the January call.
An analyst asked about customers struggling to complete product kits. Ilan said some industrial and data center customers "have asked for help," and that TI often had inventory and could commit capacity or growth into 2027 and beyond. He called the feedback early and anecdotal, and said it was too soon to compare the situation with the COVID-era shortage.
Capacity and the supply argument
Ilan said little analog capacity has been added outside China in four years, and that a fab takes about four years to go from moving dirt to output. He said TI is "in an advantage position here versus the rest of the market."
On market share, he was more cautious: TI does not measure it quarter to quarter, and gains should be judged through the cycle. "We cannot measure it yet," he said.
He said TI built inventory during the downturn and reserved clean room space and equipment slots for 2027 and beyond, which lets it "control our destiny." Ilan said capital spending in 2026 would land between $2 billion and $3 billion, with tool lead times lengthening, especially for back-end equipment.
On data center, Ilan said TI sells about 10,000 generic part numbers into the market, a count management reviewed earlier in the week and that grows every quarter. He put data center at about 13% of third-quarter revenue.
The quarter and what to watch
CFO Julie Kinnett said third-quarter revenue was $6.1 billion, with net income of $2.4 billion, or $2.62 per share. For the fourth quarter, TI expects revenue of $5.8 billion to $6.3 billion and earnings per share of $2.45 to $2.79.
TI will give capital spending color on its February call, and 2027 pricing detail in January.
The next marker is January, when Ilan said TI will report how 2027 pricing talks are going alongside its guidance.
Sources
- Texas Instruments (TXN) Sees Profits Recover, but Is the Stock Still Expensive? — Yahoo Finance
- Texas Instruments Stocks Rise Although Wells Fargo Cuts Target Before Earnings — Yahoo Finance
- Analog chipmaker Texas Instruments sees quarterly sales above estimates - CNA — channelnewsasia.com
- Texas Instruments Stock Needs Another Jolt. Will Earnings Do The Trick? — Barron's
- Texas Instruments Likely To Report Higher Q3 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — benzinga.com
