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TI reports Q4 2025 and 2025 financial results and shareholder returns

By PR Newswire | January 27, 2026, 4:01 PM

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

December 31,



For Years Ended

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

December 31,



For Years Ended

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

Months

Ended

December 31,





For 12 

Months

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

Texas Instruments Logo. (PRNewsFoto/Texas Instruments Incorporated) (PRNewsfoto/Texas Instruments Incorporated)

 

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