Summary
Texas Instruments (TXN) reported a strong second quarter in 2021, demonstrating significant year-over-year growth in revenue and profitability. Revenue surged by 41% to $4.58 billion, driven by robust demand across industrial, automotive, and personal electronics sectors. Both the Analog and Embedded Processing segments experienced substantial growth, with revenue increasing by 42% and 43% respectively compared to the prior year. Profitability metrics also showed impressive improvement. Gross profit margin expanded to 67.2%, and operating profit margin increased to 48.3%, reflecting strong operational execution and favorable product mix. Net income grew by 39% to $1.93 billion, resulting in diluted Earnings Per Share (EPS) of $2.05. The company continues to generate substantial free cash flow, with $6.5 billion for the trailing twelve months, highlighting the strength of its business model and capital discipline. TXN also announced a significant strategic acquisition of Micron Technology’s 300mm factory in Utah, signaling continued investment in its manufacturing capabilities.
Financial Highlights
53 data points| Revenue | $4.58B |
| Cost of Revenue | $1.50B |
| Gross Profit | $3.08B |
| R&D Expenses | $391.00M |
| SG&A Expenses | $425.00M |
| Operating Income | $2.21B |
| Net Income | $1.93B |
| EPS (Basic) | $2.08 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 923.00M |
| Shares Outstanding (Diluted) | 937.00M |
Key Highlights
- 1Revenue for the second quarter of 2021 reached $4.58 billion, a 41% increase year-over-year, driven by strong demand in industrial, automotive, and personal electronics.
- 2Both Analog and Embedded Processing segments saw significant year-over-year revenue growth of 42% and 43% respectively.
- 3Gross profit margin improved to 67.2% from 64.3% in the prior year's quarter, and operating profit margin increased to 48.3% from 37.9%.
- 4Net income for the quarter was $1.93 billion, a 39% increase year-over-year, with diluted EPS reported at $2.05.
- 5Free cash flow for the trailing twelve months was $6.5 billion, representing 39% of revenue, underscoring the company's strong cash-generating capabilities.
- 6The company announced an agreement to acquire Micron Technology's 300mm semiconductor factory in Lehi, Utah, for $900 million, expected to close by year-end 2021.
- 7Texas Instruments returned $3.9 billion to shareholders in the past 12 months through dividends and stock repurchases, with dividends representing a sustainable 56% of free cash flow.