Texas Instrs — Financial Results
Revenue Grew 13% in 2025, Led by the Analog Segment
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $17.68B | $15.64B | +13.0% |
| Analog Revenue | $14.01B | $12.16B | +15% |
| Embedded Processing Revenue | $2.70B | $2.53B | +6% |
Revenue rose across both main business segments, with Analog (chips that handle real-world signals like voltage and temperature) doing the heavy lifting. The recovery in the broader semiconductor market continued in 2025, though management notes the pace was slower than in previous industry upturns.
Embedded Processing Profits Fell Even as Sales Grew
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Embedded Operating Profit | $304M | $352M | -14% |
| Operating Margin | 11.3% | 13.9% | -2.6pp |
The Embedded Processing segment (microcontrollers and processors) saw revenue grow 6% but profits drop 14%, squeezing the margin from 13.9% to 11.3%. This is largely because TI's newer LFAB factory in Utah is still ramping up and its fixed costs are being spread over relatively low production volumes — a drag that should ease as the factory fills up over time.
Capital Spending Cycle Is Winding Down, Free Cash Flow Nearly Doubled
| Metric | 2025 | 2024 |
|---|---|---|
| Capital Expenditures | $4.55B | $4.82B |
| Free Cash Flow | $2.94B | $1.50B |
| FCF as % of Revenue | 16.6% | 9.6% |
Free cash flow (operating cash after capital spending) nearly doubled year-over-year. Crucially, TI says it is "nearing the end" of a six-year period of heavy factory investment, and expects capital expenditures to drop sharply to $2–3 billion in 2026. If revenue holds, this transition should meaningfully increase cash available to shareholders.
TI Is Acquiring Silicon Labs for $7.5 Billion
After the filing period closed, TI announced a deal to buy Silicon Labs, an embedded wireless chip designer, for $231 per share in cash — totalling roughly $7.5 billion. The deal is expected to close in the first half of 2027, pending regulatory and shareholder approvals. TI plans to fund it with a mix of cash on hand and new debt, which will draw down its current $4.88 billion cash balance and add to its existing debt load.
Shareholders Received $6.48 Billion in 2025
TI returned capital through both dividends ($5.00 billion) and share buybacks ($1.48 billion to repurchase 8.5 million shares). The dividend payout grew from $4.80 billion in 2024, reflecting a higher dividend rate. This level of return was funded partly by liquidating short-term investments, as total cash on hand fell by $2.70 billion over the year.