Summary
Texas Instruments (TXN) reported a solid third quarter of 2025 with revenue reaching $4.74 billion, a 14% increase year-over-year, driven by strong demand in its Analog segment and, to a lesser extent, its Embedded Processing segment. Net income remained stable at $1.36 billion, resulting in diluted EPS of $1.48. The company's operational efficiency is highlighted by a 10% increase in gross profit to $2.72 billion, despite higher manufacturing costs associated with capacity expansions. Management emphasizes its strategy of maximizing long-term free cash flow per share through a strong business model, disciplined capital allocation, and efficiency. Key financial developments include a significant increase in operating cash flow to $6.9 billion over the trailing twelve months and $2.4 billion in free cash flow. TXN also announced a 4% increase in its quarterly cash dividend to $1.42 per share, marking 22 consecutive years of dividend increases, demonstrating a commitment to returning value to shareholders. The company is navigating a recovering semiconductor market, influenced by global macroeconomic factors and geopolitical events, while continuing to invest in its 300mm wafer production and capacity expansions.
Financial Highlights
52 data points| Revenue | $4.74B |
| Cost of Revenue | $2.02B |
| Gross Profit | $2.72B |
| R&D Expenses | $518.00M |
| SG&A Expenses | $457.00M |
| Operating Income | $1.66B |
| Net Income | $1.36B |
| EPS (Basic) | $1.49 |
| EPS (Diluted) | $1.48 |
| Shares Outstanding (Basic) | 909.00M |
| Shares Outstanding (Diluted) | 914.00M |
Key Highlights
- 1Revenue grew 14% year-over-year to $4.74 billion in Q3 2025, driven by strong demand in the Analog segment.
- 2Net income remained steady at $1.36 billion, with diluted EPS of $1.48, slightly up from $1.47 in Q3 2024.
- 3Gross profit increased by 10% to $2.72 billion, though gross margin slightly decreased to 57.4% from 59.6% due to higher manufacturing costs.
- 4The company reported strong operating cash flow of $6.9 billion for the trailing twelve months and $2.4 billion in free cash flow.
- 5TXN announced a 4% increase in its quarterly dividend to $1.42 per share, continuing its track record of consecutive dividend increases.
- 6Restructuring charges of $85 million were recognized in Q3 2025 related to operational efficiencies and factory closures.
- 7The company's balance sheet shows $3.31 billion in cash and cash equivalents and $1.88 billion in short-term investments as of September 30, 2025.