Summary
Texas Instruments Inc. (TXN) reported strong financial performance for the fiscal year ended December 30, 2021. The company generated $18.34 billion in revenue, a significant increase of 27% compared to the previous year, driven primarily by its Analog segment, which accounted for 77% of total revenue. The Embedded Processing segment also showed robust growth. Profitability improved substantially, with gross profit increasing by 34% and operating profit rising to 48.8% of revenue. This performance underscores the strength of TI's business model, which is focused on analog and embedded processing products and leverages four key competitive advantages: manufacturing and technology, a broad product portfolio, extensive market channels, and diverse, long-lived products and markets. The company is strategically investing in expanding its 300-millimeter manufacturing capacity to support anticipated long-term demand, particularly in the industrial and automotive sectors. TI's strategy to maximize free cash flow per share growth remains centered on its strong business model, disciplined capital allocation, and continuous pursuit of efficiency. In 2021, the company generated $6.29 billion in free cash flow and returned $4.41 billion to shareholders through dividends and share repurchases, indicating a commitment to shareholder value. Despite facing global economic uncertainties, supply chain challenges, and intense competition, Texas Instruments demonstrates a resilient business and a clear strategy for sustained long-term value creation.
Financial Highlights
52 data points| Revenue | $18.34B |
| Cost of Revenue | $5.97B |
| Gross Profit | $12.38B |
| R&D Expenses | $1.55B |
| SG&A Expenses | $1.67B |
| Operating Income | $8.96B |
| Net Income | $7.77B |
| EPS (Basic) | $8.38 |
| EPS (Diluted) | $8.26 |
| Shares Outstanding (Basic) | 923.00M |
| Shares Outstanding (Diluted) | 936.00M |
Key Highlights
- 1Revenue grew 27% to $18.34 billion in 2021, driven by strong demand in both Analog and Embedded Processing segments.
- 2Analog segment remains the primary revenue driver, accounting for 77% of total revenue ($14.05 billion) and showing significant operating profit growth.
- 3Operating profit margin improved to 48.8% in 2021, up from 40.8% in 2020, reflecting higher revenue and improved gross margins.
- 4Free cash flow generation was robust at $6.29 billion, allowing the company to return $4.41 billion to shareholders via dividends and share repurchases.
- 5Significant investments are being made in expanding manufacturing capacity, particularly in 300-millimeter wafer fabrication facilities, to support long-term growth in industrial and automotive markets.
- 6The company continues to emphasize its strategy of maximizing free cash flow per share growth through a strong business model, disciplined capital allocation, and operational efficiency.