Texas Instruments reported second-quarter 2026 revenue of $5.46 billion, with net income (profit) of $1.98 billion and earnings per share of $2.14. The Dallas-based company shared its results before an earnings call on Wednesday, July 22, 2026 (TI Investor Relations).

A day later, STMicroelectronics released its own Q2 2026 figures. The Geneva-based chip company posted revenue of $3.49 billion, up 26% from the same quarter a year ago (STMicroelectronics Investor Relations). Its gross margin — the share of revenue left after paying the direct costs of making the chips — was 34.8%. Operating income reached $187 million, and net income stood at $222 million (STMicroelectronics Newsroom). ST had announced the timing of its earnings release on July 3, 2026 (STMicroelectronics Newsroom).

What Do These Companies Actually Make?

Both companies make chips, but for slightly different customers. Texas Instruments focuses on analog and embedded processing chips — the kind that handle real-world signals like temperature, sound, or voltage in factory equipment and cars. STMicroelectronics makes similar components but also makes more specialized chips: microcontrollers (tiny computers on a single chip), sensors like the ones in your phone that detect motion, and power chips used in electric vehicles. Because the two overlap in enough areas, their back-to-back results give a useful picture of demand across the analog chip world.

The Numbers Side by Side

TI's revenue is about 1.6 times larger than ST's. The bigger gap shows up in profitability. TI's net margin — the percentage of every dollar of revenue that becomes profit after all expenses — sits near 36.3%. STMicroelectronics' net margin lands at about 6.4%.

That gap comes down to what each company makes, who it sells to, and how efficiently it runs its factories. TI owns its own 300mm wafer fabs (the factories where silicon wafers get turned into chips). Larger wafers fit more chips per production run, which lowers the cost per chip. That advantage has helped TI earn more profit per dollar of sales for years.

The Growth Story vs. the Profit Story

STMicroelectronics' 26% revenue growth is the more eye-catching number here. If that pace continues, it would be a meaningful turnaround for a company that went through a long stretch where customers were working through excess inventory instead of buying new chips. But ST's 34.8% gross margin sits well below its past highs. That suggests pricing pressure or factory underutilization — paying to keep factories running without producing enough to fill them — is still dragging on profitability even as sales recover.

For TI, the $2.14 earnings-per-share figure and near-36% net margin show the company's profit engine is still running well. But without year-over-year comparisons in the disclosed numbers, investors will be listening to the earnings call for clues about whether demand from industrial and automotive customers is picking up, and how efficiently its factories in Richardson and Lehi are running.

What Matters Going Forward

The broader context here is a classic tension between stability and growth. TI is holding steady at high profit margins. ST is growing faster but earning far less per dollar of sales. The key question for ST is whether its 34.8% gross margin will rise as revenue grows. If it does, the company's earnings could improve quickly. If it stays flat, the growth story matters less for shareholders.

Analog chips tend to lag the broader semiconductor market by one to two quarters, because they go into products like factory equipment and cars that have long development timelines. So neither report settles the bigger question of where the chip cycle stands right now. The real signal will come from what both companies say about next quarter's outlook and their order books.

For now, the numbers tell a simple story. TI turns revenue into profit more efficiently than almost anyone in the industry. ST is growing faster but earning less. Whether that growth turns into higher profits later in 2026 is the question both companies will face from analysts.