01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Texas Instruments Incorporated (TXN) reported its fiscal year 2025 results, highlighting a robust increase in revenue to $17.68 billiona, a 13.0% rise from the prior year.
This growth was primarily driven by strong demand in its core Analog segment, which contributed approximately 79% of total revenue, and a notable contribution from the Embedded Processing segment. The company continues to focus on its strategy to maximize long-term free cash flow per share growth, underpinned by a strong business model with four competitive advantages, disciplined capital allocation, and a commitment to efficiency. Financially, TXN demonstrated solid operational performance with $7.15 billionb in cash flow from operations.
Free cash flow reached $2.94 billionc, representing 16.6% of revenue. The company returned significant value to shareholders, with $6.48 billion allocated to dividends and share repurchases.
Notably, TXN announced a major acquisition of Silicon Labs for approximately $7.5 billiond, expected to close in the first half of 2027, signaling a strategic move to expand its offerings, particularly in the embedded processing space. The company anticipates lower effective tax rates and tax-related cash payments in 2026 and beyond due to the "One Big Beautiful Bill Act" (OBBBA).
02—Key points
Key Highlights
- Revenue grew 13.0% to $17.68 billion in 2025, driven by strong demand in the Analog segment.
- Analog segment revenue increased 15% to $14.01 billion, representing approximately 79% of total revenue.
- Free cash flow generation was strong at $2.94 billion (16.6% of revenue), with $6.48 billion returned to shareholders via dividends and repurchases.
- The company announced a significant $7.5 billion acquisition of Silicon Labs, expected to close in the first half of 2027, to bolster its embedded processing capabilities.
- Capital expenditures were $4.55 billion in 2025, with expectations to moderate to $2-$3 billion in 2026 as an elevated cycle nears completion.
- The "One Big Beautiful Bill Act" (OBBBA) is expected to lead to lower effective tax rates and tax-related cash payments from 2026 onwards.
- Despite some cost pressures and a goodwill impairment in the 'Other' segment, overall operating profit increased to $6.02 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Texas Instruments kept $0.28.
- Revenue$17.68B100.0%
- Cost of revenue−$7.60B43.0%
- Gross profit$10.08B57.0%
- Operating costs−$4.06B23.0%
- Operating income$6.02B34.1%
- Interest, other & tax−$1.02B5.8%
- Net income$5.00B28.3%
Where FY2025 revenue went
$17.68B- Cost of revenue: $7.60B, 43% of revenue
- Net income: $5.00B, 28% of revenue
- R&D: $2.08B, 12% of revenue
- SG&A: $1.86B, 11% of revenue
- Other operating costs: $117.0M, 0.7% of revenue
- Interest, other & tax: $1.02B, 5.8% of revenue
Kept 28% as net incomeOther operating costs $117.0M · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $17.68B$15.64B | +13.0% |
| Cost of Revenue | $7.60B$6.55B | +16.1% |
| Gross Profit | $10.08B$9.09B | +10.9% |
| R&D Expenses | $2.08B$1.96B | +6.3% |
| SG&A Expenses | $1.86B$1.79B | +3.7% |
| Operating Income | $6.02B$5.46B | +10.2% |
| Net Income | $5.00B$4.80B | +4.2% |
| EPS (Basic) | $5.47$5.24 | +4.4% |
| EPS (Diluted) | $5.45$5.20 | +4.8% |
| Shares Outstanding (Basic) | 909.00M912.00M | −0.3% |
| Shares Outstanding (Diluted) | 913.00M919.00M | −0.7% |
05—Questions
Frequently Asked Questions
What is Texas Instruments' primary strategic focus and how is it measured?
Texas Instruments' primary strategic focus is on its Analog and Embedded Processing products. The company's ultimate objective and key metric for measuring progress for owners is the long-term growth of free cash flow per share. This strategy is supported by a strong business model built on four competitive advantages, disciplined capital allocation, and a pursuit of efficiency.
How did the Analog and Embedded Processing segments perform in 2025?
The Analog segment saw a 15% revenue increase to $14.01 billion in 2025, driven by higher demand, and its operating profit margin was 38.6%. The Embedded Processing segment's revenue grew 6% to $2.70 billion, but its operating profit decreased 14% to $304 million, primarily due to higher manufacturing costs and operating expenses.
What are the key financial highlights from the 2025 fiscal year?
In 2025, Texas Instruments generated $17.68 billion in revenue, an increase of 13.0%. Cash flow from operations was $7.15 billion, and free cash flow was $2.94 billion (16.6% of revenue). The company returned $6.48 billion to shareholders through dividends and share repurchases. While net income increased slightly to $5.00 billion, EPS rose to $5.45 from $5.20 in the prior year.
What is the significance of the announced acquisition of Silicon Labs?
The announced all-cash acquisition of Silicon Labs for approximately $7.5 billion is a significant strategic move for Texas Instruments. Expected to close in the first half of 2027, it aims to enhance TI's product portfolio, particularly in the embedded processing domain, by integrating Silicon Labs' strengths into TI's existing offerings and market channels.
06—Continue