Summary
Texas Instruments (TXN) reported its second quarter 2023 financial results, showing a sequential revenue increase but a year-over-year decline. Revenue for the quarter was $4.53 billion, up 3% from the previous quarter but down 13% compared to Q2 2022. This decrease was primarily driven by lower revenue in the Analog segment, partially offset by growth in Embedded Processing. Net income for the quarter was $1.72 billion, or $1.87 per diluted share, compared to $2.29 billion, or $2.45 per diluted share, in the prior year's second quarter. The company highlighted weakness across most end markets, with the exception of automotive, which continues to show resilience. Texas Instruments emphasized its focus on long-term free cash flow per share growth, supported by its business model and competitive advantages. The company continues to invest in R&D and capital expenditures, particularly for manufacturing capacity expansion, which has impacted gross margins due to higher fixed costs being spread over lower factory utilization and increased manufacturing costs. Significant investments in capital expenditures, totaling $2.43 billion for the first six months of 2023, are aimed at strengthening its manufacturing and technology capabilities.
Financial Highlights
52 data points| Revenue | $4.53B |
| Cost of Revenue | $1.62B |
| Gross Profit | $2.91B |
| R&D Expenses | $477.00M |
| SG&A Expenses | $461.00M |
| Operating Income | $1.97B |
| Net Income | $1.72B |
| EPS (Basic) | $1.89 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 908.00M |
| Shares Outstanding (Diluted) | 916.00M |
Key Highlights
- 1Revenue for Q2 2023 was $4.53 billion, a 13% decrease year-over-year but a 3% increase sequentially.
- 2Net income for Q2 2023 was $1.72 billion, resulting in diluted EPS of $1.87, down from $2.45 in Q2 2022.
- 3The Analog segment experienced an 18% revenue decline year-over-year, while Embedded Processing saw a 9% increase.
- 4Gross profit margin declined to 64.2% from 69.6% year-over-year, attributed to lower revenue and increased manufacturing costs related to capacity expansion.
- 5Capital expenditures increased significantly to $2.43 billion in the first six months of 2023, compared to $1.04 billion in the same period last year, reflecting investments in manufacturing capacity.
- 6The company generated $2.56 billion in cash flow from operations for the first six months of 2023, though this was down from $3.91 billion in the prior year.
- 7Texas Instruments continues to prioritize long-term free cash flow per share growth, investing in its competitive advantages and returning capital to shareholders through dividends and share repurchases.