Summary
Texas Instruments (TXN) reported first-quarter 2023 results with revenue of $4.38 billion, a decrease of 11% year-over-year, primarily driven by a decline in the Analog segment. Net income was $1.71 billion, resulting in diluted earnings per share (EPS) of $1.85, down from $2.35 in the prior year. The company noted weakness across most end markets, with the exception of automotive. Despite the revenue decline, TXN highlighted the strength of its business model, evidenced by strong operating cash flow and free cash flow generation over the trailing twelve months. The company continued to invest in its competitive advantages, with capital expenditures increasing significantly year-over-year to support manufacturing capacity. Management remains focused on long-term free cash flow per share growth, supported by a disciplined capital allocation strategy and operational efficiencies.
Financial Highlights
51 data points| Revenue | $4.38B |
| Cost of Revenue | $1.52B |
| Gross Profit | $2.86B |
| R&D Expenses | $455.00M |
| SG&A Expenses | $474.00M |
| Operating Income | $1.93B |
| Net Income | $1.71B |
| EPS (Basic) | $1.87 |
| EPS (Diluted) | $1.85 |
| Shares Outstanding (Basic) | 907.00M |
| Shares Outstanding (Diluted) | 916.00M |
Key Highlights
- 1Revenue declined 11% year-over-year to $4.38 billion, attributed to lower demand in most end markets, particularly the Analog segment.
- 2Net income decreased to $1.71 billion from $2.20 billion in the prior year, leading to diluted EPS of $1.85, down from $2.35.
- 3Gross profit margin contracted to 65.4% from 70.2% due to lower revenue and increased manufacturing costs.
- 4Operating expenses (R&D and SG&A) increased due to investments in employee-related costs to strengthen competitive advantages.
- 5Capital expenditures more than doubled year-over-year to $982 million, reflecting ongoing investments in manufacturing capacity and technology.
- 6Total cash (cash and cash equivalents plus short-term investments) stood at $9.55 billion, indicating a solid liquidity position.
- 7The company repurchased $103 million of its common stock in the quarter, a decrease from $589 million in the prior year, while dividends paid increased to $1.13 billion.