TI reports second quarter 2025 financial results and shareholder returns

Texas Instruments Reports Second Quarter 2025 Results

DALLAS, July 22, 2025 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $4.45 billion, net income of $1.30 billion and earnings per share of $1.41. Earnings per share included a 2-cent benefit that was not in the company's original guidance.

Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's president and CEO, made the following comments:

Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.

Earnings Summary

(In millions, except per-share amounts)

• Q2 2025
• Q2 2024
• Change
• Revenue: $4,448 vs. $3,822 (16%)
• Operating profit: $1,563 vs. $1,248 (25%)
• Net income: $1,295 vs. $1,127 (15%)
• Earnings per share: $1.41 vs. $1.22 (16%)

Cash Generation

Trailing 12 Months (In millions)

• Q2 2025
• Q2 2025
• Q2 2024
• Change
• Cash flow from operations: $1,860 vs. $6,439 vs. $6,449 (0%)
• Free cash flow: $555 vs. $1,763 vs. $1,494 (18%)
• Free cash flow % of revenue: 10.6% vs. 9.3%

Cash Return

Trailing 12 Months (In millions)

• Q2 2025
• Q2 2025
• Q2 2024
• Change
• Dividends paid: $1,235 vs. $4,900 vs. $4,675 (5%)
• Stock repurchases: $302 vs. $1,810 vs. $185 (878%)
• Total cash returned: $1,537 vs. $6,710 vs. $4,860 (38%)

Consolidated Statements of Income

For Three Months Ended June 30, (In millions, except per-share amounts)

• Revenue: $4,448 vs. $3,822
• Cost of revenue (COR): $1,873 vs. $1,611
• Gross profit: $2,575 vs. $2,211
• Research and development (R&D): $527 vs. $498
• Selling, general and administrative (SG&A): $485 vs. $465
• Operating profit: $1,563 vs. $1,248
• Other income (expense), net (OI&E): $48 vs. $130
• Interest and debt expense: $133 vs. $131
• Income before income taxes: $1,478 vs. $1,247
• Provision for income taxes: $183 vs. $120
• Net income: $1,295 vs. $1,127
• Diluted earnings per common share: $1.41 vs. $1.22
• Average shares outstanding: Basic - 908 vs. 912, Diluted - 912 vs. 919
• Cash dividends declared per common share: $1.36 vs. $1.30

Supplemental Information

Provision for income taxes is based on the following:

• Operating taxes (calculated using the estimated annual effective tax rate): $199 vs. $170
• Discrete tax items: $(16) vs. $(50)
• Provision for income taxes (effective taxes): $183 vs. $120

Consolidated Balance Sheets

June 30, (In millions, except par value)

• Assets:
• Current assets:
• Cash and cash equivalents: $3,044 vs. $2,740
• Short-term investments: $2,315 vs. $6,948
• Accounts receivable, net of allowances: $1,934 vs. $1,711
• Raw materials: $402 vs. $405
• Work in process: $2,429 vs. $2,072
• Finished goods: $1,981 vs. $1,629
• Inventories: $4,812 vs. $4,106
• Prepaid expenses and other current assets: $2,379 vs. $1,284
• Total current assets: $14,484 vs. $16,789
• Property, plant and equipment at cost: $16,878 vs. $14,622
• Accumulated depreciation: $(4,557) vs. $(3,448)
• Property, plant and equipment: $12,321 vs. $11,174
• Goodwill: $4,362 vs. $4,362
• Deferred tax assets: $1,096 vs. $905
• Capitalized software licenses: $248 vs. $230
• Overfunded retirement plans: $253 vs. $167
• Other long-term assets: $2,169 vs. $1,421
• Total assets: $34,933 vs. $35,048
• Liabilities and stockholders' equity:
• Current liabilities:
• Current portion of long-term debt: $— vs. $1,049
• Accounts payable: $881 vs. $858
• Accrued compensation: $595 vs. $569
• Income taxes payable: $53 vs. $178
• Accrued expenses and other liabilities: $963 vs. $983
• Total current liabilities: $2,492 vs. $3,637
• Long-term debt: $14,043 vs. $12,842
• Underfunded retirement plans: $122 vs. $113
• Deferred tax liabilities: $63 vs. $55
• Other long-term liabilities: $1,810 vs. $1,187
• Total liabilities: $18,530 vs. $17,834
• Stockholders' equity:
• Preferred stock, $25 par value: $— vs. $—
• Common stock, $1 par value: $1,741 vs. $1,741
• Paid-in capital: $4,245 vs. $3,666
• Retained earnings: $52,249 vs. $52,135
• Treasury common stock at cost: $(41,676) vs. $(40,128)
• Accumulated other comprehensive income (loss), net of taxes (AOCI): $(156) vs. $(200)
• Total stockholders' equity: $16,403 vs. $17,214
• Total liabilities and stockholders' equity: $34,933 vs. $35,048

Consolidated Statements of Cash Flows

For Three Months Ended June 30, (In millions)

• Cash flows from operating activities:
• Net income: $1,295 vs. $1,127
• Adjustments to net income:
• Depreciation: $460 vs. $363
• Amortization of capitalized software: $21 vs. $18
• Stock compensation: $129 vs. $116
• Losses on sales of assets: $— vs. $3
• Deferred taxes: $(50) vs. $(85)
• Increase (decrease) from changes in:
• Accounts receivable: $(74) vs. $(40)
• Inventories: $(125) vs. $(23)
• Prepaid expenses and other current assets: $(9) vs. $(22)
• Accounts payable and accrued expenses: $92 vs. $102
• Accrued compensation: $172 vs. $168
• Income taxes payable: $(71) vs. $120
• Changes in funded status of retirement plans: $(18) vs. $9
• Other: $38 vs. $(285)
• Cash flows from operating activities: $1,860 vs. $1,571
• Cash flows from investing activities:
• Capital expenditures: $(1,305) vs. $(1,064)
• Cash flows from investing activities: $(1,335) vs. $—
• Cash flows from financing activities:
• Proceeds from issuance of long-term debt: $1,199 vs. $—
• Repayment of debt: $— vs. $(300)
• Dividends paid: $(1,235) vs. $(1,185)
• Stock repurchases: $(302) vs. $(71)
• Proceeds from common stock transactions: $115 vs. $248
• Other: $(21) vs. $(6)
• Cash flows from financing activities: $(244) vs. $(1,314)
• Net change in cash and cash equivalents: $281 vs. $257
• Cash and cash equivalents at beginning of period: $2,763 vs. $2,483
• Cash and cash equivalents at end of period: $3,044 vs. $2,740

Supplemental Cash Flow Information

• Investment tax credit (ITC) used to reduce income taxes payable: $203 vs. $312
• Proceeds from CHIPS Act incentives: $— vs. $—
• Total cash benefit related to the CHIPS Act: $203 vs. $312

Segment Results

(In millions)

• Q2 2025
• Q2 2024
• Change
• Analog:
• Revenue: $3,452 vs. $2,928 (18%)
• Operating profit: $1,325 vs. $1,047 (27%)
• Embedded Processing:
• Revenue: $679 vs. $615 (10%)
• Operating profit: $85 vs. $80 (6%)
• Other:
• Revenue: $317 vs. $279 (14%)
• Operating profit: $153 vs. $121 (26%)

Non-GAAP Financial Information

This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.

We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.

Reconciliation to the most directly comparable GAAP measures is provided in the table below.

For Three Months Ended June 30

(In millions)

• 2025
• 2025
• 2024
• Change
• Cash flow from operations (GAAP)*: $1,860 vs. $6,439 vs. $6,449 (0%)
• Capital expenditures: $(1,305) vs. $(4,936) vs. $(4,955)
• Proceeds from CHIPS Act incentives: $— vs. $260 vs. $—
• Free cash flow (non-GAAP): $555 vs. $1,763 vs. $1,494 (18%)

Revenue

• $16,675 vs. $16,092

Cash Flow Percentages

• Cash flow from operations as a percentage of revenue (GAAP): 38.6% vs. 40.1%
• Free cash flow as a percentage of revenue (non-GAAP): 10.6% vs. 9.3%

* Includes cash benefits of $203 million, $479 million and $312 million from the CHIPS Act ITC used to reduce income taxes payable for the three months ended June 30, 2025, and the twelve months ended June 30, 2025 and 2024, respectively.

This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items.

Notice Regarding Forward-Looking Statements

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management: For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of TI's most recent Form 10-K.

The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, enterprise systems and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.

SOURCE Texas Instruments Incorporated