Texas Instruments Inc.
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, rest of Asia, Europe, Middle East, Africa, Japan, and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
Analysis Summary
Profitability metrics showed a solid performance, though gross margin saw a slight contraction. Gross profit for the quarter was $2.723 billion, resulting in a gross margin of approximately 57.4%, down from 59.6% in Q3 2024. Operating profit increased 7% year-over-year to $1.663 billion, yielding an operating margin of about 35.1%. Net income remained stable at $1.364 billion, a 0% change from the previous year, while diluted earnings per share (EPS) edged up 1% to $1.48, despite a 10-cent reduction from original guidance. The company's cash generation remained robust, with trailing 12-month cash flow from operations up 10% to $6.9 billion, and free cash flow soaring 65% to $2.4 billion, representing 14.0% of revenue.
CEO Haviv Ilan highlighted the sequential revenue growth and expansion across all end markets as key drivers, attributing success to the strength of TI's business model, product portfolio, and the benefits of 300mm production. Over the past 12 months, TI made significant strategic investments, allocating $3.9 billion to R&D and SG&A, and $4.8 billion to capital expenditures, reinforcing its long-term growth strategy. Furthermore, the company demonstrated a strong commitment to shareholder returns, distributing $6.6 billion to owners through dividends and stock repurchases during the same period, including $75 million in CHIPS Act incentives for the quarter.
Looking forward, Texas Instruments provided a fourth-quarter 2025 outlook with revenue expected to be in the range of $4.22 billion to $4.58 billion, and earnings per share projected between $1.13 and $1.39. This guidance suggests a sequential decrease in revenue, reflecting potential market normalization or strategic adjustments. TI continues to leverage its manufacturing capabilities and diverse product portfolio, particularly in the industrial and automotive markets, to maintain its competitive position and drive future growth, while navigating a dynamic global economic landscape.
Key Highlights
- • Q3 2025 Revenue of $4.74 billion, up 14% year-over-year.
- • Q3 2025 Diluted EPS of $1.48, a 1% increase year-over-year, despite a 10-cent reduction.
- • Trailing 12-month Free Cash Flow surged 65% to $2.4 billion.
- • Returned $6.6 billion to shareholders over the trailing 12 months through dividends and stock repurchases.
- • Revenue growth achieved across all end markets and segments (Analog up 16%, Embedded Processing up 9%).
- • Q4 2025 Outlook: Revenue projected between $4.22 billion and $4.58 billion, with EPS between $1.13 and $1.39.
- • Strategic investments of $3.9 billion in R&D/SG&A and $4.8 billion in capital expenditures over the trailing 12 months.
Financial Metrics
Stock Performance (90 Days)
Positive Signals
- • Strong free cash flow generation (up 65% YoY)
- • Consistent shareholder returns ($6.6B in trailing 12 months)
- • Revenue growth across all end markets and segments
- • Strategic investments in R&D, SG&A, and capital expenditures for future growth
- • Benefits derived from 300mm production
Risks & Concerns
- — Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts.
- — Ability to compete in products and prices in an intensely competitive industry.
- — Ability to successfully implement and realize opportunities from strategic, business and organizational changes, or to realize expected returns on significant investments in manufacturing capacity.
- — Global economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies.
- — Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology.
Full Transcript
Recent Texas Instruments Inc. News
Stock Price
Company Info
- Website
- www.ti.com
- Industry
- Semiconductors
- Sector
- Technology
- Headquarters
- Dallas, TX, United States
- CEO
- Mr. Haviv Ilan
- Employees
- 34,000
Layoff Stats
- Layoff Events
- 0
- Total Affected
- 0
Recent Layoffs
No canonical layoff events recorded for this company.