Summary
Texas Instruments Incorporated (TXN) reported its fiscal year 2025 results, highlighting a robust increase in revenue to $17.68 billion, 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 billion in cash flow from operations. Free cash flow reached $2.94 billion, 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 billion, 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).
Financial Highlights
52 data points| Revenue | $17.68B |
| Cost of Revenue | $7.60B |
| Gross Profit | $10.08B |
| R&D Expenses | $2.08B |
| SG&A Expenses | $1.86B |
| Operating Income | $6.02B |
| Net Income | $5.00B |
| EPS (Basic) | $5.47 |
| EPS (Diluted) | $5.45 |
| Shares Outstanding (Basic) | 909.00M |
| Shares Outstanding (Diluted) | 913.00M |
Key Highlights
- 1Revenue grew 13.0% to $17.68 billion in 2025, driven by strong demand in the Analog segment.
- 2Analog segment revenue increased 15% to $14.01 billion, representing approximately 79% of total revenue.
- 3Free cash flow generation was strong at $2.94 billion (16.6% of revenue), with $6.48 billion returned to shareholders via dividends and repurchases.
- 4The 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.
- 5Capital expenditures were $4.55 billion in 2025, with expectations to moderate to $2-$3 billion in 2026 as an elevated cycle nears completion.
- 6The "One Big Beautiful Bill Act" (OBBBA) is expected to lead to lower effective tax rates and tax-related cash payments from 2026 onwards.
- 7Despite some cost pressures and a goodwill impairment in the 'Other' segment, overall operating profit increased to $6.02 billion.