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Texas Instruments (TXN) FY2025 results: revenue $17.7 billion, up 13.0% on the year

Texas Instruments Inc. (TXN) reported revenue of $17.7 billion for fiscal 2025, the year ended 31 December 2025, up 13.0% on the year before. Net income was $5.0 billion, up 4.2%, and diluted earnings per share $5.45. The figures are the company's own, from the 10-K it filed with the SEC on 6 February 2026.

Revenue
$17.7 billion
+13.0% on the year
FY2018FY2025
Operating margin
34.1%
34.9% a year earlier
FY2018FY2025
Net income
$5.0 billion
+4.2% on the year
FY2018FY2025
Diluted EPS
$5.45
+4.8% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 2 new.

  • Revenue up 10% year on year: Revenue was $4,423 million, up 10% from a year earlier and down 7% from the third quarter's $4,742 million. Net income was $1,163 million, down 3%.
  • Diluted EPS down 2%, reduction included: Diluted EPS was $1.27 against $1.30 a year earlier. Management said it included a 6-cent reduction that was not in the original guidance; the prior quarter's reduction was 10 cents.
  • Analog revenue up 14%: Analog revenue was $3,615 million, up 14% from a year earlier and down from $3,729 million in the prior quarter; operating profit was $1,395 million, up 13%.
  • Trailing free cash flow up 96%: Trailing 12-month cash flow from operations was $7,153 million, up 13%; free cash flow was $2,938 million, up 96%, or 16.6% of revenue.
  • Trailing cash returns $6.5 billion: Total cash returned over 12 months was $6,476 million, up 13%: dividends paid were $4,999 million, up 4%, and stock repurchases were $1,477 million, up 59%.
Read the Q4 FY2025 earnings call summary

From this 10-K

Texas Instruments designs and manufactures semiconductors and sells them to electronics designers and manufacturers worldwide. Operations began in 1930, the company is incorporated in Delaware, and it is headquartered in Dallas, Texas, with design, manufacturing or sales operations in more than 30 countries. There are two reportable segments, Analog and Embedded Processing, with the remaining activities reported in Other.

Texas Instruments Inc., the 10-K for 2025

Texas Instruments designs and manufactures semiconductors and sells them to electronics designers and manufacturers worldwide. Operations began in 1930, the company is incorporated in Delaware, and it is headquartered in Dallas, Texas, with design, manufacturing or sales operations in more than 30 countries. There are two reportable segments, Analog and Embedded Processing, with the remaining activities reported in Other.

Analog

Analog products provide the power to run devices and the interfaces between a device, people, the physical world and other electronics. They are used in industrial, automotive, data centre, personal electronics and communications equipment markets, and they generated about 79% of revenue in 2025.

The segment splits into two product lines. Power covers managing power in electronic systems across different voltage levels, with battery-management products, DC/DC switching regulators, AC/DC and isolated DC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references, multiphase controllers and power stages, and lighting products. The other line covers sensing, conditioning and measuring real-world signals and converting them into data, with amplifiers, data converters, interface products, motor drives, clocks, logic and sensing products.

Embedded Processing

These products are the digital brains of electronic equipment, built to handle specific tasks and tuned for different combinations of performance, power and cost. They range from wireless connectivity and simple low-cost microcontrollers through to radar and vision processing, and they are used particularly in industrial and automotive markets. They generated about 15% of revenue in 2025.

The filing makes a point about how this business sticks: customers often invest their own research and development to write software that runs on these products, which tends to lengthen the customer relationship because many prefer to reuse software from one product generation to the next.

Other holds operating segments too small to report individually, including DLP products used mainly to project high-definition images, calculators, and certain custom semiconductors known as application-specific integrated circuits.

The markets

In 2025 the company realigned how it reports its markets. Industrial was 33% of revenue, with sectors listed in declining order as industrial automation, aerospace and defence, energy infrastructure, building automation, medical and healthcare, test and measurement, other industrial equipment, appliances, power delivery and robotics. Automotive was also 33%, covering infotainment and cluster, advanced driver assistance systems, body electronics and lighting, hybrid, electric and powertrain systems, and chassis control and safety. Personal electronics was 21%, led by mobile phones and running through PCs and notebooks, portable electronics, home theatre, connected peripherals and printers, TVs, tablets, wearables, gaming and data storage. Data centre was 9%, covering data centre compute, networking, and rack power and thermal management. Communications equipment was 3%, covering wireless infrastructure, wired networking and broadband fixed line access. Calculators were about 1%.

Manufacturing

In 2025 the company continued qualifying and ramping production at its newest 300mm wafer fabs in Richardson and Sherman, Texas, and Lehi, Utah, which the filing says are positioned to support customer demand, external foundry transfers and internal transfers from its legacy 150mm facilities. It sourced the majority of its wafer fabrication and of its assembly and test internally in 2025, supplementing that selectively with outside foundries and subcontractors. It runs a multisite, multiflow production strategy alongside a business continuity programme and a global supplier network.

The company states it is nearing the end of a six-year elevated capital expenditures cycle and expects to spend about $2 billion to $3 billion in 2026, and that it expects to continue benefiting from the CHIPS Act, including a 35% investment tax credit on qualifying manufacturing investments placed in service after 31 December 2025 and direct funding of up to $1.6 billion for its three large-scale 300mm wafer fabs in Sherman, Texas and Lehi, Utah.

The filing describes the analog and embedded processing markets as remaining highly fragmented despite consolidation, with competition from dozens of large and small companies, both broad-based and niche suppliers, including emerging companies particularly in Asia.

From Texas Instruments' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 6 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue17,68215,64117,519+13.0%
Cost of revenue7,5996,5476,500+16.1%
Gross profit10,0839,09411,019+10.9%
Gross margin57.0%58.1%62.9%
Research and development2,0831,9591,863+6.3%
Selling, general and administrative1,8601,7941,825+3.7%
Operating income6,0235,4657,331+10.2%
Operating margin34.1%34.9%41.8%
Pre-tax income5,7105,4537,418+4.7%
Income tax709654908+8.4%
Effective tax rate12.4%12.0%12.2%
Net income5,0014,7996,510+4.2%
Net margin28.3%30.7%37.2%
Diluted EPS$5.45$5.20$7.07+4.8%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow7,1536,3186,420+13.2%
Capital expenditure4,5504,8205,071-5.6%
Free cash flow2,6031,4981,349+73.8%
Free cash flow margin14.7%9.6%7.7%
Cash from investing-1,439-3,202-4,362
Cash from financing-5,689-2,880-2,144
Depreciation and amortisationn/an/a1,175
Share-based compensation419387362+8.3%
Buybacks1,477929293+59.0%
Dividends paid4,9994,7954,557+4.3%
Dividend per share$5.50$5.26$5.02+4.6%
Diluted shares, weighted913m919m916m-0.7%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity16,27316,90316,897-3.7%
Debt14,04813,59611,223+3.3%
Operating lease liabilities612663478-7.7%
Other liabilities3,6524,3473,750-16.0%
Total liabilities and equity34,58535,50932,348-2.6%
Fixed assets12,32011,3479,999+8.6%
Goodwill4,3304,3624,362-0.7%
Intangible assets238n/an/a
Investments1,6724,4035,645-62.0%
Cash and equivalents3,2253,2002,964+0.8%
Receivables1,9631,7191,787+14.2%
Inventory4,8044,5273,999+6.1%
Other assets6,0335,9513,592+1.4%
Total assets34,58535,50932,348-2.6%

10-K for the year ended 31 December 2025, filed 6 February 2026: the filing.