Summary
Texas Instruments Inc. (TXN) reported strong performance for the fiscal year ended December 30, 2017, driven by its core Analog and Embedded Processing segments. The company generated $14.96 billion in revenue, a 12% increase year-over-year, primarily due to robust demand in the industrial and automotive markets. Profitability was strong, with a gross margin of 64.3% and operating profit of $6.08 billion. Free cash flow reached $4.67 billion, underscoring the effectiveness of TI's business model focused on long-term growth, profitability, and shareholder returns. The company's strategic emphasis on Analog and Embedded Processing products, particularly for industrial and automotive applications, continues to be a key driver of its success. These markets offer long product life cycles, diversity, and less capital-intensive manufacturing, contributing to stable profitability and strong cash generation. TI's commitment to reinvesting in the business and returning free cash flow to shareholders through dividends and stock repurchases remains a central tenet of its capital management strategy.
Financial Highlights
53 data points| Revenue | $14.96B |
| Cost of Revenue | $5.35B |
| Gross Profit | $9.61B |
| R&D Expenses | $1.51B |
| SG&A Expenses | $1.69B |
| Operating Income | $6.08B |
| Net Income | $3.68B |
| EPS (Basic) | $3.68 |
| EPS (Diluted) | $3.61 |
| Shares Outstanding (Basic) | 991.00M |
| Shares Outstanding (Diluted) | 1.01B |
Key Highlights
- 1Revenue increased by 12% to $14.96 billion in 2017, driven by strong performance in Analog and Embedded Processing segments, especially in industrial and automotive markets.
- 2Gross profit margin improved to 64.3% in 2017 from 61.8% in 2016, reflecting efficient manufacturing and a favorable product mix.
- 3Operating profit grew significantly by 25% to $6.08 billion, indicating strong operational leverage and cost management.
- 4Free cash flow generation was robust, reaching $4.67 billion (31.2% of revenue), demonstrating the company's strong cash-generating capabilities.
- 5The company returned $4.66 billion to shareholders in 2017 through dividends ($2.10 billion) and stock repurchases ($2.56 billion), aligning with its capital return strategy.
- 6Research and Development (R&D) investment increased by 11% to $1.51 billion, signaling continued commitment to product innovation and differentiation.
- 7The company anticipates a lower annual operating tax rate starting in 2019 due to the U.S. Tax Cuts and Jobs Act, moving from approximately 31% in 2017 to about 18%.