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Texas Instruments Inc (TXN) reported second-quarter FY21 revenue growth of 41% year-on-year to $4.58 billion, surpassing the analyst consensus of $4.35 billion.

Strong demand in industrial, automotive, and personal electronics drove the growth.

Analog revenue grew 42% Y/Y to $3.5 billion. It posted an operating margin of 51.3%. Embedded Processing revenue rose 43% Y/Y to $780 million with a 40% operating margin. Other revenue increased 30% Y/Y to $336 million. The operating margin was 36.6%.

The total operating margin expanded by 1,038 basis points to 48.3%. Net income rose 40% Y/Y to $1.9 billion, with the margin contracting by 40 basis points to 42.2%. EPS of $2.05 beat the analyst consensus of $1.82. Texas returned $1.1 billion to the shareholders in the form of dividends and share buybacks. It generated $2.1 billion in operating cash flow and held $7.4 billion in cash and equivalents.

Outlook: Texas sees Q3 revenue of $4.40 billion - $4.76 billion, versus the analyst consensus of $4.58 billion. It sees an EPS of $1.87 - $2.13 compared to the analyst consensus of $1.97.

Price action: TXN shares traded lower by 1.79% at $184.41 in the premarket session on the last check Thursday.