Summary
Texas Instruments (TXN) reported strong financial results for the third quarter and first nine months of 2021, showcasing robust revenue growth and improved profitability. Revenue surged by 22% year-over-year in Q3 2021, driven by high demand across industrial, automotive, and personal electronics sectors. Both the Analog and Embedded Processing segments experienced significant revenue increases, with Analog showing particular strength. The company's operational efficiency is evident in its expanding gross profit margins and operating profit, which increased substantially across both reporting periods. Financially, TXN demonstrated strong cash flow generation, with operating cash flow of $8.5 billion for the trailing twelve months and free cash flow of $7.1 billion, representing 41% of revenue. The company actively returned capital to shareholders, with $4.2 billion distributed through dividends and stock repurchases over the past 12 months, indicating a sustainable dividend policy. TXN also bolstered its long-term financial position by issuing new senior unsecured notes and recently completed the acquisition of a 300mm semiconductor factory, signaling continued investment in manufacturing capacity and long-term growth.
Financial Highlights
53 data points| Revenue | $4.64B |
| Cost of Revenue | $1.49B |
| Gross Profit | $3.15B |
| R&D Expenses | $388.00M |
| SG&A Expenses | $412.00M |
| Operating Income | $2.31B |
| Net Income | $1.95B |
| EPS (Basic) | $2.10 |
| EPS (Diluted) | $2.07 |
| Shares Outstanding (Basic) | 923.00M |
| Shares Outstanding (Diluted) | 936.00M |
Key Highlights
- 1Revenue for Q3 2021 increased 22% year-over-year to $4.64 billion, driven by strong demand in industrial, automotive, and personal electronics.
- 2Net income for Q3 2021 grew to $1.95 billion, resulting in diluted EPS of $2.07, a significant increase from $1.45 in Q3 2020.
- 3Gross profit margin improved to 67.9% in Q3 2021 from 64.3% in the prior year period, reflecting strong pricing and operational efficiency.
- 4Operating profit margin expanded to 49.6% in Q3 2021 from 42.2% in Q3 2020, highlighting effective cost management and revenue leverage.
- 5Free cash flow for the trailing twelve months reached $7.1 billion (40.6% of revenue), underscoring the company's robust cash generation capabilities.
- 6Texas Instruments returned $4.2 billion to shareholders through dividends and stock repurchases over the past 12 months, with a 13% dividend increase announced.
- 7The company completed the acquisition of a 300mm semiconductor factory in Utah for approximately $900 million in October 2021, signaling investment in future manufacturing capacity.