What were the primary drivers of Texas Instruments' revenue growth in the reported period?

Revenue growth was primarily driven by strong demand in the automotive and industrial markets. Both the Analog and Embedded Processing segments experienced significant year-over-year revenue increases, with Analog revenue up 18% and Embedded Processing revenue up 15% in the second quarter of 2017.

How did Texas Instruments' profitability metrics change compared to the prior year?

Profitability improved substantially. Gross margin increased to 64.3% in Q2 2017 from 61.3% in Q2 2016. Operating profit margin also saw a significant rise to 40.1% from 34.6%, reflecting higher revenue, improved gross profit, and efficient management of operating expenses.

What is the company's strategy regarding shareholder returns?

Texas Instruments demonstrated a strong commitment to returning capital to shareholders. Over the trailing twelve months, the company returned $4.1 billion through stock repurchases and dividends. Management continues to highlight this as a key outcome of their business model, which focuses on generating strong free cash flow.

How does Texas Instruments manage its inventory levels?

Inventory levels stood at $1.95 billion at the end of Q2 2017, an increase of $157 million from year-end 2016. Days of inventory were 133, up from 126 at the end of 2016. While inventory increased, the company's strategy focuses on managing it within the context of strong demand and efficient production.

TXN 10-Q Quarterly Report Q2 FY2017 — Revenue, Net Income, EPS

Summary

Texas Instruments (TXN) reported a strong second quarter and first half of 2017, with significant year-over-year growth in revenue and profitability across its core Analog and Embedded Processing segments. Revenue increased by 13% to $3.69 billion for the quarter and by 13% to $7.10 billion for the six months ended June 30, 2017. This growth was driven by robust demand in the automotive and industrial markets, with operating margins improving in both key segments. The company demonstrated strong free cash flow generation, reaching $4.0 billion for the trailing twelve months, representing 28.5% of revenue. TXN continued its commitment to shareholder returns, distributing $4.1 billion through stock repurchases and dividends over the past year. The balance sheet remains solid, with ample liquidity to fund operations and strategic initiatives. Management highlighted the company's diversified product portfolio, manufacturing strategy, and extensive market channels as key drivers of sustained performance and shareholder value.

Financial Highlights

52 data points

Beta

Revenue

$3.69B

0.6% Gross Margin

Net Income

$1.06B

0.3% Net Margin

EPS (Diluted)

$1.03

Total Assets

$16.44B

Cash & Equivalents

$1.14B

Free Cash Flow

$766.00M

Financial Statements

Beta

Revenue	$3.69B
Cost of Revenue	$1.32B
Gross Profit	$2.37B
R&D Expenses	$378.00M
SG&A Expenses	$434.00M
Operating Income	$1.48B
Net Income	$1.06B
EPS (Basic)	$1.05
EPS (Diluted)	$1.03
Shares Outstanding (Basic)	994.00M
Shares Outstanding (Diluted)	1.01B

Key Highlights

1Revenue increased 13% year-over-year to $3.69 billion for Q2 2017 and 13% to $7.10 billion for the first six months of 2017.
2Analog segment revenue grew 18% and Embedded Processing segment revenue grew 15% year-over-year in Q2 2017.
3Operating profit margin improved significantly to 40.1% in Q2 2017, up from 34.6% in Q2 2016, driven by higher revenue and gross profit.
4Free cash flow for the trailing twelve months was $4.0 billion, representing 28.5% of revenue, underscoring strong cash-generating capabilities.
5Texas Instruments returned $4.1 billion to shareholders through dividends and stock repurchases in the past 12 months.
6The company ended Q2 2017 with a strong liquidity position, including $2.98 billion in cash and short-term investments.
7Average selling prices for key products indicate strong demand, particularly in the automotive and industrial markets.

TEXAS INSTRUMENTS INC Quarterly Report for Q2 Ended Jun 30, 2017

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions