Summary
Texas Instruments Inc. (TXN) reported strong first-quarter 2025 results, with revenue growing 11% year-over-year to $4.07 billion. This growth was primarily driven by an increase in the Analog segment, which saw a 13% revenue uplift and a 20% increase in operating profit. Diluted Earnings Per Share (EPS) rose to $1.28 from $1.20 in the prior year quarter, reflecting improved profitability. The company maintained robust operational performance, evidenced by a healthy operating profit margin and a significant increase in free cash flow to $1.7 billion for the trailing twelve months, up from $0.94 billion in the prior year. This was supported by $260 million in CHIPS Act incentives, which are expected to further benefit manufacturing investments. Despite a slight increase in days sales outstanding and inventory, the company's financial position remains strong with substantial cash and short-term investments. Management highlighted the strength of its business model, competitive advantages, disciplined capital allocation, and focus on efficiency as key drivers for long-term free cash flow per share growth. The company continues to invest in manufacturing capacity, particularly for its 300mm wafer fabs, and returned significant capital to shareholders through dividends and share repurchases.
Financial Highlights
52 data points| Revenue | $4.07B |
| Cost of Revenue | $1.76B |
| Gross Profit | $2.31B |
| R&D Expenses | $517.00M |
| SG&A Expenses | $472.00M |
| Operating Income | $1.32B |
| Net Income | $1.18B |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 910.00M |
| Shares Outstanding (Diluted) | 916.00M |
Key Highlights
- 1Revenue increased 11% year-over-year to $4.07 billion, driven by a 13% rise in the Analog segment.
- 2Diluted EPS grew to $1.28 from $1.20 in the prior year, indicating improved profitability.
- 3Operating profit margin for the quarter was 32.5%, a slight decrease from 35.1% in Q1 2024, primarily due to planned capacity expansions and higher manufacturing costs.
- 4Free cash flow for the trailing twelve months significantly increased by 82% to $1.715 billion, boosted by CHIPS Act incentives.
- 5The company received $260 million in CHIPS Act incentives, supporting ongoing investments in manufacturing capacity, including 300mm wafer fabs.
- 6Total cash and short-term investments stood at $5.01 billion as of March 31, 2025, providing ample liquidity.
- 7Shareholders received $1.24 billion in dividends and $653 million in share repurchases during the quarter.