Nasdaq:TXN
TEXAS INSTRUMENTS INC
A premier semiconductor designer delivering high-reliability analog and embedded processing solutions to critical industrial, consumer, and automotive sectors.
Key Metrics
Investment Thesis
Bull Case
Texas Instruments offers a defensive growth profile with consistent free cash flow generation and a strong balance sheet holding over $3.20B in cash, making it attractive during market volatility. The company's focus on high-margin analog chips provides pricing power that often outperforms the broader semiconductor index during economic cycles.
Bear Case
Revenue contraction from 2022 to 2024 suggests exposure to macroeconomic headwinds that may persist, potentially limiting upside potential in the near term. High capital expenditures of $4.55B and a significant retained earnings deficit of $52.24B indicate substantial ongoing investment requirements that could pressure margins if product mix shifts unfavorably.
About TEXAS INSTRUMENTS INC
Texas Instruments Inc. is a global leader in semiconductor design and manufacturing, specializing in analog and embedded processing chips that power diverse industries including industrial control systems, consumer electronics, healthcare devices, and automotive applications. The company serves markets worldwide with its extensive portfolio of precision amplifiers, data converters, power management solutions, and microcontrollers known for exceptional performance and reliability.
Analysis
Management Discussion
Despite a recent revenue decline from 2023 to 2024, the company achieved a net profit of $5.00B in 2025 with revenue recovering to $17.68B, demonstrating resilience in a volatile market. Strong operating cash flow of $7.15B and significant capital returns via dividends ($5.00B) and share repurchases ($1.48B) highlight robust financial discipline even as the company navigates inventory adjustments totaling $277.0M.
Industry Overview
The semiconductor industry is highly cyclical and capital-intensive, with analog chips serving as essential building blocks for modern electronics that require high reliability and precision. Companies in this sector face intense competition but benefit from long design cycles and the necessity of switching to new suppliers only when current ones fail or become obsolete.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $20.03B | $17.52B | $15.64B | $17.68B |
| Cost of Revenue | $6.26B | $6.50B | $6.55B | $7.60B |
| Gross Profit | $13.77B | $11.02B | $9.09B | $10.08B |
| Operating Expenses | $3.63B | $3.69B | $3.63B | $4.06B |
| Operating Income | $10.14B | $7.33B | $5.46B | $6.02B |
| R&D | $1.67B | $1.86B | $1.96B | $2.08B |
| G&A | $1.70B | $1.82B | $1.79B | $1.86B |
| Stock-Based Comp | $289.0M | $362.0M | $387.0M | $419.0M |
| Depreciation | $925.0M | $1.18B | $1.51B | $1.92B |
| Amortization | $0 | $0 | — | — |
| Other OpEx | $257.0M | $0 | $-124.0M | $117.0M |
| Non-Operating Income | $-108.0M | $87.0M | $-12.0M | $-313.0M |
| Pre-Tax Income | $10.03B | $7.42B | $5.45B | $5.71B |
| Income Tax | $1.28B | $908.0M | $654.0M | $709.0M |
| Continuing Ops | $8.75B | $6.51B | $4.80B | $5.00B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $8.75B | $6.51B | $4.80B | $5.00B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $8.75B | $6.51B | $4.80B | $5.00B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $14.02B | $15.12B | $15.03B | $13.75B |
| Cash & Equivalents | $3.05B | $2.96B | $3.20B | $3.23B |
| Marketable Securities | $6.02B | $5.61B | $4.38B | $1.66B |
| Accounts Receivable | $1.90B | $1.79B | $1.72B | $1.96B |
| Inventory | $2.76B | $4.00B | $4.53B | $4.80B |
| Prepaid Expenses | $302.0M | $761.0M | $1.20B | $2.10B |
| Other Current Assets | $0 | $0 | $0 | $0 |
| Long-Term Assets | $13.19B | $17.23B | $20.48B | $20.84B |
| PP&E (Net) | $6.88B | $10.00B | $11.35B | $12.32B |
| Goodwill | $4.36B | $4.36B | $4.36B | $4.33B |
| Operating Leases | $431.0M | $579.0M | $786.0M | $729.0M |
| LT Investments | $34.0M | $34.0M | $23.0M | $16.0M |
| Other LT Assets | $1.48B | $2.25B | $3.96B | $3.44B |
| Total Assets | $27.21B | $32.35B | $35.51B | $34.59B |
| Current Liabilities | $2.98B | $3.32B | $3.64B | $3.16B |
| Accounts Payable | $851.0M | $802.0M | $820.0M | $756.0M |
| Current Debt | $500.0M | $599.0M | $750.0M | $500.0M |
| Current Leases | $75.0M | $88.0M | $118.0M | $119.0M |
| Taxes Payable | $189.0M | $172.0M | $159.0M | $67.0M |
| Other Current Liab | $1.37B | $1.66B | $1.80B | $1.72B |
| Long-Term Liabilities | $9.64B | $12.13B | $14.96B | $15.15B |
| Long-Term Debt | $8.23B | $10.62B | $12.85B | $13.55B |
| LT Operating Leases | $344.0M | $478.0M | $663.0M | $612.0M |
| Other LT Liab | $1.07B | $1.03B | $1.45B | $993.0M |
| Total Liabilities | $12.63B | $15.45B | $18.61B | $18.31B |
| Shareholders' Equity | $14.58B | $16.90B | $16.90B | $16.27B |
| Retained Earnings | $50.35B | $52.28B | $52.26B | $52.24B |
| AOCI | $-254.0M | $-205.0M | $-140.0M | $-85.0M |
| Treasury Stock | $40.21B | $40.28B | $40.90B | $42.13B |
| Total L&E | $27.21B | $32.35B | $35.51B | $34.59B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $8.75B | $6.51B | $4.80B | $5.00B |
| Non-Cash Adjustments | $-1.80B | $-1.55B | $-78.0M | $1.44B |
| Working Capital Changes | $1.77B | $1.46B | $1.60B | $715.0M |
| Cash from Operations | $8.72B | $6.42B | $6.32B | $7.15B |
| Capital Expenditures | $2.80B | $5.07B | $4.82B | $4.55B |
| Cash from Investing | $-3.58B | $-4.36B | $-3.20B | $-1.44B |
| Debt Issuances | $1.49B | $3.00B | $2.98B | $1.20B |
| Share Buybacks | $3.62B | $293.0M | $929.0M | $1.48B |
| Dividends Paid | $4.30B | $4.56B | $4.79B | $5.00B |
| Cash from Financing | $-6.72B | $-2.14B | $-2.88B | $-5.69B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-1.58B | $-86.0M | $236.0M | $25.0M |
| Beginning Cash | $4.63B | $3.05B | $2.96B | $3.20B |
| Ending Cash | $3.05B | $2.96B | $3.20B | $3.23B |
Frequently Asked Questions
How does TEXAS INSTRUMENTS INC make money?
The company generates revenue primarily through its Analog and Embedded Processing segments, which include precision amplifiers, data converters, power management ICs, and microcontrollers sold across industrial, consumer, healthcare, and automotive markets.
What are the main risks for TXN?
Cyclical downturns in industrial and consumer electronics demand could suppress revenue growth; geopolitical tensions affecting the semiconductor supply chain may disrupt manufacturing; rapid technological shifts in embedded processing could erode market share if innovation lags.
What is TXN's competitive advantage?
Texas Instruments leverages a massive installed base of customers creating high switching costs, an unmatched reputation for product reliability in harsh environments, and deep customer co-development relationships that secure long-term contracts.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.