Summary
Texas Instruments Inc. (TXN) reported revenue of $17.52 billion for the fiscal year ended December 30, 2023. While overall revenue saw a decrease of 12.5% compared to the prior year, driven primarily by a decline in the Analog segment, the company strategically emphasizes growth in the industrial and automotive markets, which are expected to offer the best long-term opportunities. The company's core strategy remains focused on maximizing long-term free cash flow per share growth through a robust business model centered on analog and embedded processing products, disciplined capital allocation, and operational efficiency. Despite a challenging revenue environment, TXN continues to invest heavily in research and development and capital expenditures, particularly in expanding its 300mm manufacturing capacity, positioning itself for future demand and strengthening its competitive advantages. The company remains committed to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
52 data points| Revenue | $17.52B |
| Cost of Revenue | $6.50B |
| Gross Profit | $11.02B |
| R&D Expenses | $1.86B |
| SG&A Expenses | $1.82B |
| Operating Income | $7.33B |
| Net Income | $6.51B |
| EPS (Basic) | $7.13 |
| EPS (Diluted) | $7.07 |
| Shares Outstanding (Basic) | 908.00M |
| Shares Outstanding (Diluted) | 916.00M |
Key Highlights
- 1Revenue for fiscal year 2023 was $17.52 billion, a decrease of 12.5% compared to 2022, largely due to lower Analog segment revenue.
- 2The company's strategy prioritizes long-term free cash flow per share growth, focusing on its Analog and Embedded Processing segments, particularly in the industrial and automotive markets.
- 3Significant investments were made in capital expenditures ($5.07 billion) to expand 300mm manufacturing capacity, supporting future growth over the next 10-15 years.
- 4Free cash flow in 2023 was $1.35 billion, representing 7.7% of revenue, a decrease from 29.6% in 2022, influenced by increased inventory build-up and capital expenditures.
- 5The company returned $4.85 billion to shareholders in 2023 through dividends and share repurchases.
- 6Inventory levels increased significantly, with days of inventory rising to 219 from 157, as the company strategically built inventory ahead of anticipated demand.
- 7Operating expenses (R&D and SG&A) increased to $3.69 billion due to higher employee-related costs associated with strengthening competitive advantages.