Summary
Texas Instruments Inc. (TXN) filed its 2015 10-K on February 23, 2016, reporting on its performance for the fiscal year ending December 30, 2015. The company, a global semiconductor designer and manufacturer, generated $13 billion in revenue. TXN's strategy centers on its Analog and Embedded Processing segments, which represent the vast majority of its revenue and are characterized by long product life cycles, diversity, and lower capital intensity, contributing to stability, profitability, and strong free cash flow generation. This business model underpins their capital management strategy focused on maximizing shareholder value through free cash flow growth. Financially, the company demonstrated resilience, with revenue largely flat year-over-year at $13 billion. Gross margin improved to 58.2%, a record high, driven by the company's product portfolio and manufacturing efficiency. Operating profit saw a healthy increase to $4.27 billion, and net income rose by 6% to $2.99 billion, translating to diluted EPS of $2.82. Free cash flow, a key metric for TXN, also reached a record high, representing 28.6% of revenue, and the company returned $4.2 billion to shareholders through dividends and stock repurchases. TXN's focus on its core segments and efficient operations position it for continued value creation.
Financial Highlights
53 data points| Revenue | $13.00B |
| Cost of Revenue | $5.42B |
| Gross Profit | $7.58B |
| R&D Expenses | $1.27B |
| SG&A Expenses | $1.73B |
| Operating Income | $4.32B |
| Net Income | $2.99B |
| EPS (Basic) | $2.86 |
| EPS (Diluted) | $2.82 |
| Shares Outstanding (Basic) | 1.03B |
| Shares Outstanding (Diluted) | 1.04B |
Key Highlights
- 1Total revenue for 2015 was $13 billion, nearly flat compared to the previous year.
- 2Analog and Embedded Processing segments accounted for 86% of revenue, demonstrating the company's strategic focus.
- 3Gross margin improved to a record 58.2%, reflecting operational efficiencies and product mix.
- 4Operating profit increased by 8% to $4.27 billion, with a margin of 32.9%.
- 5Net income grew by 6% to $2.99 billion, resulting in diluted EPS of $2.82.
- 6Free cash flow reached a record $3.72 billion, representing 28.6% of revenue, showcasing strong cash generation.
- 7The company returned $4.2 billion to shareholders through dividends ($1.44 billion) and stock repurchases ($2.74 billion).