Texas Instruments (TXN) Revenue Surges 14% Despite One-Time Charge
Key Points
- Revenue: $4.74 B (+14% YoY), beat estimate of $4.64 B.
- EPS: $1.48 (+1% YoY), in line with $1.47 est., includes $0.10 reduction from a non-recurring item.
- Net Income: $1.36 B (vs $1.36 B YoY).
- Operating Profit: $1.66 B (+7% YoY).
- Free Cash Flow: $1.07 B (+65% YoY).
- Q4 Outlook: Revenue $4.22 B – $4.58 B | EPS $1.13 – $1.39.
Quarter Highlights
- Growth: Revenue up 7% sequentially and 14% YoY, with growth across all end markets (industrial, auto, and embedded).
- Segment Results:
- Analog revenue $3.73 B (+16%), operating profit $1.49 B (+13%).
- Embedded Processing revenue $709 M (+9%), flat profit $108 M.
- Other revenue $304 M (+11%), profit $69 M (-47%) due to restructuring.
- Cash Generation:
- Trailing 12-month operating cash flow $6.9 B (+10%).
- Free cash flow $2.4 B (+65%) = 14% of revenue.
- Shareholder Returns: $6.6 B returned over 12 months ($4.95 B dividends, $1.61 B buybacks).
- Investment: $3.9 B spent on R&D and SG&A; $4.8 B in CapEx, reflecting continued 300 mm capacity expansion.
CEO Statement and Outlook
CEO Haviv Ilan highlighted “broad-based growth across all end markets” and emphasized the strength of TI’s 300 mm manufacturing model in supporting cash flow and returns to shareholders.
For Q4 2025, TI expects softer seasonality with revenue of $4.22–$4.58 B and EPS of $1.13–$1.39, reflecting macro uncertainty and inventory normalization in industrial and auto segments.
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue | $4.74 B | $4.15 B | +14% |
| Operating Profit | $1.66 B | $1.55 B | +7% |
| Operating Margin | 35.1% | 37.4% | -230 bps |
| Net Income | $1.36 B | $1.36 B | Flat |
| EPS | $1.48 | $1.47 | +1% |
| Free Cash Flow | $1.07 B | $0.65 B | +65% |
Capital Return
- Dividends: $1.36 per share (+5% YoY).
- Share Repurchases: $119 M this quarter; $1.61 B over 12 months.
- Total Returned to Shareholders: $6.56 B in past year (26% increase).
About Texas Instruments
Texas Instruments designs and manufactures semiconductors focused on analog and embedded processing products serving industrial and automotive markets. The company continues to invest heavily in domestic manufacturing and R&D to improve long-term cost efficiency and supply resilience.
Key Takeaways
- Beat on revenue, met EPS despite a $0.10 charge not in guidance.
- Broad market recovery drove double-digit revenue growth.
- Strong cash returns and CapEx signal confidence in long-term demand.
- Margins compressed slightly on restructuring and cost pressures.
- Near-term outlook remains cautious given soft industrial orders and macro uncertainty.