Summary
Texas Instruments Inc. (TXN) reported fiscal year 2024 revenue of $15.64 billion, a decrease of 10.7% from the prior year, primarily driven by lower revenue in its core Analog and Embedded Processing segments. Despite the revenue decline, the company emphasizes its strategy centered on maximizing long-term free cash flow per share, supported by four competitive advantages: manufacturing/technology, broad product portfolio, market channel reach, and product/market diversity. Significant investments are being made in expanding 300mm manufacturing capacity in Texas and Utah to support future growth and cost efficiencies. The company generated $6.32 billion in cash flow from operations and $1.50 billion in free cash flow, representing 9.6% of revenue, and returned $5.72 billion to shareholders through dividends and share repurchases. The CHIPS and Science Act is expected to provide significant financial benefits, including tax credits and direct funding for new manufacturing facilities. While facing industry cyclicality and competitive pressures, Texas Instruments remains focused on disciplined capital allocation and operational efficiency to drive long-term shareholder value.
Financial Highlights
52 data points| Revenue | $15.64B |
| Cost of Revenue | $6.55B |
| Gross Profit | $9.09B |
| R&D Expenses | $1.96B |
| SG&A Expenses | $1.79B |
| Operating Income | $5.46B |
| Net Income | $4.80B |
| EPS (Basic) | $5.24 |
| EPS (Diluted) | $5.20 |
| Shares Outstanding (Basic) | 912.00M |
| Shares Outstanding (Diluted) | 919.00M |
Key Highlights
- 1Revenue for 2024 was $15.64 billion, a 10.7% decrease year-over-year, attributed to declines in both Analog and Embedded Processing segments.
- 2The company's core strategy remains focused on maximizing long-term free cash flow per share growth, leveraging four competitive advantages in manufacturing, product breadth, market channels, and diversity.
- 3Significant capital expenditures of $4.82 billion were made in 2024, primarily for expanding 300mm wafer fabrication capacity to support future demand and enhance cost advantages.
- 4Texas Instruments generated $6.32 billion in cash flow from operations and $1.50 billion in free cash flow (9.6% of revenue) in 2024.
- 5The company returned $5.72 billion to shareholders in 2024 through dividends ($4.80 billion) and share repurchases ($0.93 billion).
- 6The U.S. CHIPS and Science Act is expected to provide between $7.5 billion to $9.5 billion through 2034, including investment tax credits and direct funding for manufacturing facilities.
- 7Gross profit margin decreased to 58.1% in 2024 from 62.9% in 2023, largely due to lower revenue and increased manufacturing costs related to capacity expansions.