Texas Instruments revenue rose 23 percent as industrial and data-center demand recovered

Every major market grew. Texas Instruments reported second-quarter revenue of $5.46bn, up 23 percent from a year earlier and 13 percent from the first quarter, with the gains led by industrial, data-center and automotive customers. Net income rose 53 percent, to $1.98bn, and earnings per share reached $2.14, up from $1.41. The company said $0.05 of that came from a benefit that was not in its original guidance.

Operating profit rose 48 percent, to $2.31bn. It outpaced sales. Chief executive Haviv Ilan pointed to the company's 300-millimeter production, the newer and cheaper manufacturing that Texas Instruments has spent years and billions of dollars building out. Free cash flow reached $6.5bn over the trailing twelve months, and for the third quarter the company guided to revenue of $5.65bn to $6.15bn and earnings per share of $2.23 to $2.57.

The guide points up. Its midpoint would be another sequential step, on top of a quarter that already grew 13 percent from the last one. Texas Instruments spent the past two years watching customers draw down chips they had stockpiled, and revenue fell for much of it. A broad recovery, rather than one hot end market, is the part of this report that changes the read.