TEXAS INSTRUMENTS INC (TXN) Earnings History

TEXAS INSTRUMENTS INC - Q4 2025 EarningsMissed

Filed at: Jan 27, 2026, 4:05 PM EST|Read from source

EXECUTIVE SUMMARY

Texas Instruments reported a 10% year-over-year revenue increase in Q4 2025, driven by strong performance in its Analog segment, while Embedded Processing showed modest growth. The company highlighted its robust cash flow generation and significant returns to shareholders, though net income and EPS saw a slight sequential decline.

POSITIVE HIGHLIGHTS

  • •

    Revenue increased 10% year-over-year to $4.42 billion.

    positive
  • •

    Operating profit increased 7% year-over-year to $1.47 billion.

    positive
  • •

    Cash flow from operations for the trailing 12 months was $7.2 billion, a 13% increase year-over-year.

    positive
  • •

    Free cash flow for the trailing 12 months was $2.9 billion, a 96% increase year-over-year.

    positive
  • •

    Total cash returned to owners in the trailing 12 months was $6.5 billion, a 13% increase year-over-year.

    positive
  • •

    Analog segment revenue grew 14% year-over-year to $3.62 billion.

    positive

CONCERNS & RISKS

  • •

    Net income decreased 3% year-over-year to $1.16 billion.

    negative
  • •

    Diluted earnings per share decreased 2% year-over-year to $1.27.

    negative
  • •

    Revenue decreased 7% sequentially from Q3 2025.

    attention
  • •

    Other segment revenue decreased 34% year-over-year to $146 million.

    negative
  • •

    Other segment operating profit decreased 91% year-over-year to $7 million.

    negative
  • •

    Embedded Processing segment operating profit decreased 14% year-over-year to $304 million.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$4.42B
+10.0%
Prior year: $4.01B
Annual (YTD)
$17.68B
N/A
Prior year: $1.56B
Net Income
Quarterly
$1.16B
-3.0%
Prior year: $1.21B
Annual (YTD)
$5.00B
N/A
Prior year: $4.80B
EPS (Diluted)
Quarterly
$1.27
-2.0%
Prior year: $1.30
Operating Income
Quarterly
$1.47B
+7.0%
Prior year: $1.38B
Annual (YTD)
$6.02B
N/A
Prior year: $5.46B
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
55.9%
Prior Year
57.8%
YoY Change
-186 bps
Operating Margin
Current Quarter
33.3%
Prior Year
34.4%
YoY Change
-110 bps
Net Margin
Current Quarter
26.3%
Prior Year
30.1%
YoY Change
-380 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 2025 2025

VISUAL OVERVIEW

|
Analog
0.0%
N/A
Embedded Processing
0.0%
N/A
Other
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Analog
N/A———
Embedded Processing
N/A———
Other
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

Q1 2026

revenue
$4320000.0B—$4680000.0B
Mid-point: $4500000.0B
eps
$1.22—$1.48
Mid-point: $1.35

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Restructuring charges/other
+$32M
FY 2025
Restructuring charges/other
+$117M
Total Impact
+$149M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Revenue decreased 7% sequentially and increased 10% from the same quarter a year ago.

— TEXAS INSTRUMENTS INC, Q4 2025 2025 Earnings Call

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.

— TEXAS INSTRUMENTS INC, Q4 2025 2025 Earnings Call

Free cash flow for the same period was $2.9 billion.

— TEXAS INSTRUMENTS INC, Q4 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Cash Flow From Operations As Percentage Of Revenue
40.5
Prior year: 40.4
%
Free Cash Flow As Percentage Of Revenue
16.6
Prior year: 9.6
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.