Texas Instrs — Income Statement, Cash Flows & Balance Sheet
Is Texas Instruments profitable?
Texas Instruments rebounded strongly in 2025, growing revenue and profit after a down year in 2024, though it has not yet returned to 2023 peak levels.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Revenue ($M) | $17,519 | $15,641 | $17,682 | +13% |
| Gross Profit ($M) | $11,019 | $9,094 | $10,083 | +11% |
| Gross Margin | 62.9% | 58.1% | 57.0% | −1.1 pp |
| Operating Profit ($M) | $7,331 | $5,465 | $6,023 | +10% |
| Net Income ($M) | $6,510 | $4,799 | $5,001 | +4% |
| Diluted EPS | $7.07 | $5.20 | $5.45 | +5% |
Revenue recovered nicely from a soft 2024, but gross margins remain below 2023 levels — partly because heavy factory investment means more depreciation flowing through cost of revenue. Net income improvement was more modest than operating profit growth, largely because interest expense on the company's growing debt load has nearly doubled since 2023.
One-time items in both 2024 and 2025 make year-over-year comparisons a little noisy.
| Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Restructuring charges / other ($M) | $0 | $(124) gain | $117 charge |
In 2024, a gain on asset sales flattered results; in 2025, restructuring costs and a small goodwill write-down went the other direction. Stripping these out, the underlying business trajectory is a cleaner improvement than the headline numbers suggest.
Where does Texas Instruments' revenue come from?
Analog — the larger and more profitable segment — drove virtually all of the revenue recovery in 2025.
| Segment | 2023 Revenue | 2024 Revenue | 2025 Revenue | Change (2024→2025) |
|---|---|---|---|---|
| Analog ($M) | $13,040 | $12,161 | $14,006 | +15% |
| Embedded Processing ($M) | $3,368 | $2,533 | $2,697 | +6% |
| Other ($M) | $1,111 | $947 | $979 | +3% |
Analog, which makes chips that handle power management and real-world signal processing, bounced back sharply and now accounts for roughly 79% of total revenue. Embedded Processing (the digital "brain" chips) improved modestly but remains well below its 2023 level, and its operating profit has compressed significantly — suggesting this segment is still working through an inventory correction.
The U.S. is the single largest geography, but Europe and China each represent about a fifth of sales.
| Region | 2023 Share | 2024 Share | 2025 Share |
|---|---|---|---|
| United States | 33% | 38% | 38% |
| China | 19% | 19% | 21% |
| Europe, Middle East & Africa | 26% | 22% | 21% |
The U.S. share has grown noticeably relative to 2023, while Europe has softened. One customer accounted for 12% of total revenue in both 2024 and 2025 — a meaningful concentration worth monitoring.
Does Texas Instruments generate cash?
Texas Instruments is a strong cash generator, though the gap between operating cash flow and capital spending remains wide due to an ongoing factory-building program.
| Metric ($M) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Cash from Operations | $6,420 | $6,318 | $7,153 |
| Capital Expenditures | $(5,071) | $(4,820) | $(4,550) |
| Free Cash Flow (GAAP) | $1,349 | $1,498 | $2,603 |
Operating cash flow is healthy and growing, and capital spending is actually tapering off from its 2023 peak — a welcome sign. Free cash flow (cash from operations minus capex) nearly doubled year over year, giving the company more financial breathing room.
Texas Instruments returned substantial cash to shareholders while also receiving meaningful government support.
| Item ($M) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Dividends Paid | $4,557 | $4,795 | $4,999 |
| Stock Repurchases | $293 | $929 | $1,477 |
| Total Returned to Shareholders | $4,850 | $5,724 | $6,476 |
| CHIPS Act Cash Benefit | $0 | $588 | $670 |
The company is paying out more in dividends and buybacks than it earns in free cash flow, funding the difference with new debt. The U.S. CHIPS Act (a federal semiconductor manufacturing incentive program) is providing a meaningful cash offset to the heavy factory investment.
How strong is Texas Instruments' balance sheet?
Debt has grown substantially to fund factory construction, but the maturity schedule is well spread and there is no near-term crisis.
| Metric ($M) | 2024 | 2025 | Change |
|---|---|---|---|
| Total Long-Term Debt (face value) | $13,700 | $14,150 | +$450 |
| Interest & Debt Expense | $508 | $543 | +7% |
| Current Portion of Debt Due | $750 | $500 | −$333 |
Debt has risen steadily over three years to help fund billions in new U.S. manufacturing capacity. That said, maturities are staggered across decades, and the company has an undrawn $1 billion credit line available as a backstop. After the filing period, Texas Instruments announced a roughly $7.5 billion all-cash acquisition of Silicon Labs, expected to close in early 2027, which will add further to the debt load.
Liquidity is adequate, though short-term investments were drawn down significantly.
| Item ($M) | 2024 | 2025 | Change |
|---|---|---|---|
| Cash & Cash Equivalents | $3,200 | $3,225 | +$25 |
| Short-Term Investments | $4,380 | $1,656 | −$2,724 |
| Total Liquid Assets | $7,580 | $4,881 | −$2,699 |
The company deliberately ran down its short-term investment portfolio — essentially spending its savings cushion to fund operations and shareholder returns. Liquidity is still reasonable, but the buffer is thinner than it was a year ago, which makes the upcoming Silicon Labs acquisition financing worth watching.