AI Takeaway
Texas Instruments delivered strong FY2025 results with revenue rising 13.0% to $17.68B and operating cash flow surging 13.2% to $7.15B, though net income growth lagged at 4.2% due to higher costs and increased capital returns to shareholders.
Revenue
$17.68B
++13.05% YoY
EPS (Basic)
$5.47
++4.39% YoY
Gross Margin
57.0%
-1.12% YoY
Operating Income
$6.02B
++10.21% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
TXN's revenue grew 13.0% year-over-year to $17.68B in FY2025, recovering from the prior-year trough and signaling a cyclical upturn in semiconductor demand, particularly in analog and embedded processing segments.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Cost of revenue rose 16.1% to $7.60B, outpacing revenue growth of 13.0%, which caused gross margin to compress by approximately 1.1 percentage points to 57.0%. This reflects higher manufacturing and depreciation costs associated with TXN's ongoing fab expansion strategy.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow increased 13.2% to $7.15B, demonstrating robust cash conversion and supporting TXN's capital allocation priorities including dividends of $5.00B and share buybacks of $1.48B in FY2025.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockTXN is executing a multi-year capital-intensive fab expansion strategy, which is driving higher depreciation and manufacturing costs. Gross margin declined ~1.1 percentage points to 57.0% in FY2025, and this pressure may persist as new capacity comes online before demand fully absorbs it.
Source: Source: 10-K Income Statement & Balance Sheet (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.27 versus the $1.31 analyst consensus — a -2.8% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.68B | $15.64B | +13.05% |
Cost of Revenue | $7.6B | $6.55B | +16.07% |
Gross Profit | $10.08B | $9.09B | +10.88% |
Operating Income | $6.02B | $5.46B | +10.21% |
Net Income | $5B | $4.8B | +4.21% |
EPS (Basic) | $5.47 | $5.24 | +4.39% |
EPS (Diluted) | $5.45 | $5.20 | +4.81% |
R&D Expense | $2.08B | $1.96B | +6.33% |
SG&A Expense | $1.86B | $1.79B | +3.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.59B | $35.51B | -2.60% |
Current Assets | $13.75B | $15.03B | -8.49% |
Total Liabilities | $18.31B | $18.61B | -1.58% |
Current Liabilities | $3.16B | $3.64B | -13.29% |
Stockholders' Equity | $16.27B | $16.9B | -3.73% |
Cash & Equivalents | $3.23B | $3.2B | +0.78% |
Long-Term Debt | $14.05B | $13.6B | +3.32% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $7.15B | $6.32B | +13.22% |
Investing Cash Flow | $-1.44B | $-3.2B | +55.06% |
Financing Cash Flow | $-5.69B | $-2.88B | -97.53% |
Dividends Paid | $5B | $4.79B | +4.25% |
Share Buybacks | $1.48B | $929M | +58.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 57.0% | 58.1% | -1.12% |
Operating Margin | 34.1% | 34.9% | -0.88% |
Net Margin | 28.3% | — | — |
ROE | 30.7% | — | — |
ROA | 14.5% | — | — |
Current Ratio | $4.353 | — | — |
Debt to Equity | $1.125 | — | — |
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Texas Instruments reported FY2025 revenue of $17.68B, a 13.0% increase from $15.64B in the prior year. This recovery reflects improved demand for analog and embedded processing semiconductors after a cyclical industry downturn.
TXN's FY2025 results showed strong revenue and cash flow recovery, with operating cash flow hitting $7.15B (+13.2%). However, net income grew only 4.2% to $5.00B as cost of revenue rose faster than sales, compressing gross margin to 57.0% from 58.1%.
Key risks inferred from FY2025 financials include margin compression from ongoing fab expansion costs, elevated long-term debt of $14.05B, and the inherent cyclicality of semiconductor demand that caused revenue to swing significantly between years.
Texas Instruments returned approximately $6.48B to shareholders in FY2025, comprising $5.00B in dividends (+4.3% YoY) and $1.48B in share repurchases (+59.0% YoY), funded by its strong operating cash flow of $7.15B.
TXN's financial health remains strong, with a current ratio of 4.35x, ROE of 30.7%, and operating cash flow of $7.15B. The main watch item is long-term debt of $14.05B (debt-to-equity of 1.13x) taken on to fund its multi-year semiconductor manufacturing expansion.