Conference call at 3:30 p.m. Central time today on ti.com/ir
DALLAS, Jan. 27, 2026 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported fourth quarter revenue of $4.42 billion, net income of $1.16 billion and earnings per share of $1.27. Earnings per share included a 6-cent reduction that was not in the company's original guidance.
Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:
- "Revenue decreased 7% sequentially and increased 10% from the same quarter a year ago.
- "Our cash flow from operations of $7.2 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $2.9 billion.
- "Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $4.6 billion in capital expenditures and returned $6.5 billion to owners.
- "TI's first quarter outlook is for revenue in the range of $4.32 billion to $4.68 billion and earnings per share between $1.22 and $1.48."
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) Q4 2025 Q4 2024 Change
Revenue $
4,423 $
4,007 10 %
Operating profit $
1,473 $
1,377 7 %
Net income $
1,163 $
1,205 (3) %
Earnings per share $
1.27 $
1.30 (2) %
Cash generation
Trailing 12 Months
(In millions) Q4 2025 Q4 2025 Q4 2024 Change
Cash flow from operations $
2,254 $
7,153 $
6,318 13 %
Free cash flow $
1,329 $
2,938 $
1,498 96 %
Free cash flow % of revenue 16.6 % 9.6 %
Cash return
Trailing 12 Months
(In
millions) Q4 2025 Q4 2025 Q4 2024 Change
Dividends
paid $
1,290 $
4,999 $
4,795 4 %
Stock
repurchases $
403 $
1,477 $
929 59 %
Total cash
returned $
1,693 $
6,476 $
5,724 13 %
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income For Three Months Ended For Years Ended
December 31, December 31,
(In millions, except per-share amounts) 2025 2024 2025 2024
Revenue $
4,423 $
4,007 $
17,682 $
15,641
Cost of revenue (COR) 1,951 1,693 7,599 6,547
Gross profit 2,472 2,314 10,083 9,094
Research and development (R&D) 521 491 2,083 1,959
Selling, general and administrative (SG&A) 446 446 1,860 1,794
Restructuring charges/other 32 117 (124)
Operating profit 1,473 1,377 6,023 5,465
Other income (expense), net (OI&E) 40 112 230 496
Interest and debt expense 141 130 543 508
Income before income taxes 1,372 1,359 5,710 5,453
Provision for income taxes 209 154 709 654
Net income $
1,163 $
1,205 $
5,001 $
4,799
Diluted earnings per common share $
1.27 $
1.30 $
5.45 $
5.20
Average shares outstanding:
Basic 907 912 909 912
Diluted 911 919 913 919
Cash dividends declared per common share $
1.42 $
1.36 $
5.50 $
5.26
Supplemental Information
Provision for income taxes is based on the following:
Operating taxes (calculated using the estimated annual effective tax rate) $
221 $
170 $
835 $
743
Discrete tax items (12) (16) (126) (89)
Provision for income taxes (effective taxes) $
209 $
154 $
709 $
654
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS
is calculated using the following:
Net income $
1,163 $
1,205 $
5,001 $
4,799
Income allocated to RSUs (7) (7) (28) (24)
Income allocated to common stock for diluted EPS $
1,156 $
1,198 $
4,973 $
4,775
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets December 31,
(In millions, except par value) 2025 2024
Assets
Current assets:
Cash and cash equivalents $
3,225 $
3,200
Short-term investments 1,656 4,380
Accounts receivable, net of allowances of ($22) and ($21) 1,963 1,719
Raw materials 465 395
Work in process 2,372 2,214
Finished goods 1,967 1,918
Inventories 4,804 4,527
Prepaid expenses and other current assets 2,102 1,200
Total current assets 13,750 15,026
Property, plant and equipment at cost 17,682 15,254
Accumulated depreciation (5,362) (3,907)
Property, plant and equipment 12,320 11,347
Goodwill 4,330 4,362
Deferred tax assets 967 936
Capitalized software licenses 238 257
Overfunded retirement plans 324 233
Other long-term assets 2,656 3,348
Total assets $
34,585 $
35,509
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt $
500 $
750
Accounts payable 756 820
Accrued compensation 829 839
Income taxes payable 67 159
Accrued expenses and other liabilities 1,007 1,075
Total current liabilities 3,159 3,643
Long-term debt 13,548 12,846
Underfunded retirement plans 124 110
Deferred tax liabilities 66 53
Other long-term liabilities 1,415 1,954
Total liabilities 18,312 18,606
Stockholders' equity:
Preferred stock, $25 par value. Shares authorized - 10; none issued
Common stock, $1 par value. Shares authorized - 2,400; shares issued - 1,741 1,741 1,741
Paid-in capital 4,511 3,935
Retained earnings 52,236 52,262
Treasury common stock at cost
Shares: 2025 - 834; 2024 - 830 (42,130) (40,895)
Accumulated other comprehensive income (loss), net of taxes (AOCI) (85) (140)
Total stockholders' equity 16,273 16,903
Total liabilities and stockholders' equity $
34,585 $
35,509
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows For Three Months Ended For Years Ended
December 31, December 31,
(In millions) 2025 2024 2025 2024
Cash flows from operating activities
Net income $
1,163 $
1,205 $
5,001 $
4,799
Adjustments to net income:
Depreciation 537 416 1,918 1,508
Amortization of capitalized software 20 19 81 72
Stock compensation 81 78 419 387
(Gains) losses on sales of assets 2 (1) 2 (127)
Deferred taxes 115 (21) (19) (210)
Increase (decrease) from changes in:
Accounts receivable 99 143 (244) 68
Inventories 25 (231) (277) (528)
Prepaid expenses and other current assets 8 76 10 7
Accounts payable and accrued expenses 20 87 77 125
Accrued compensation 106 115 (28) (12)
Income taxes payable 23 110 191 597
Changes in funded status of retirement plans 7 31 (7) 33
Other 48 (29) 29 (401)
Cash flows from operating activities 2,254 1,998 7,153 6,318
Cash flows from investing activities
Capital expenditures (925) (1,192) (4,550) (4,820)
Proceeds from CHIPS Act incentives 335
Proceeds from asset sales 1 1 195
Purchases of short-term investments (880) (909) (3,524) (9,716)
Proceeds from short-term investments 1,110 2,726 6,308 11,187
Other 19 (12) (9) (48)
Cash flows from investing activities (676) 614 (1,439) (3,202)
Cash flows from financing activities
Proceeds from issuance of long-term debt 1,199 2,980
Repayment of debt (300) (750) (600)
Dividends paid (1,290) (1,240) (4,999) (4,795)
Stock repurchases (403) (537) (1,477) (929)
Proceeds from common stock transactions 42 87 400 517
Other (13) (11) (62) (53)
Cash flows from financing activities (1,664) (2,001) (5,689) (2,880)
Net change in cash and cash equivalents (86) 611 25 236
Cash and cash equivalents at beginning of period 3,311 2,589 3,200 2,964
Cash and cash equivalents at end of period $
3,225 $
3,200 $
3,225 $
3,200
Supplemental cash flow information
Investment tax credit (ITC) used to reduce income taxes payable $
89 $
56 $
335 $
588
Proceeds from CHIPS Act incentives 335
Total cash benefit related to the CHIPS Act $
89 $
56 $
670 $
588
Quarterly segment results
(In millions) Q4 2025 Q4 2024 Change
Analog:
Revenue $
3,615 $
3,174 14 %
Operating profit $
1,395 $
1,237 13 %
Embedded Processing:
Revenue $
662 $
613 8 %
Operating profit $
71 $
58 22 %
Other:
Revenue $
146 $
220 (34) %
Operating profit * $
7 $
82 (91) %
* Includes Restructuring charges/other
Annual segment results
(In millions) 2025 2024 Change
Analog:
Revenue $
14,006 $
12,161 15 %
Operating profit $
5,412 $
4,608 17 %
Embedded Processing:
Revenue $
2,697 $
2,533 6 %
Operating profit $
304 $
352 (14) %
Other:
Revenue $
979 $
947 3 %
Operating profit * $
307 $
505 (39) %
* Includes Restructuring charges/other
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 For 12
Months
Ended Months
December 31, Ended
December 31,
(In millions) 2025 2025 2024 Change
Cash flow from operations (GAAP) * $
2,254 $
7,153 $
6,318 13 %
Capital expenditures (925) (4,550) (4,820)
Proceeds from CHIPS Act incentives 335
Free cash flow (non-GAAP) $
1,329 $
2,938 $
1,498 96 %
Revenue $
17,682 $
15,641
Cash flow from operations as a percentage of revenue (GAAP) 40.5 % 40.4 %
Free cash flow as a percentage of revenue (non-GAAP) 16.6 % 9.6 %
* Includes cash benefits of $89 million, $335 million and $588 million from the CHIPS Act ITC used to reduce income taxes payable for the three months ended December 31, 2025, and the twelve months ended December 31, 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. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
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:
- Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies;
- Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts;
- Our ability to compete in products and prices in an intensely competitive industry;
- Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties;
- Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings;
- Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity;
- Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology;
- Our ability to recruit and retain skilled personnel and effectively manage key employee succession;
- Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts;
- Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability;
- Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets;
- Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors;
- Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments;
- Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment;
- Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims;
- Instability in the global credit and financial markets; and
- Impairments of our non-financial assets.
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.
TXN-G
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SOURCE Texas Instruments Incorporated
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