TI reports Q4 2025 and 2025 financial results and shareholder returns

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:

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 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 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

1,860

1,794

Restructuring charges/other

—

117

(124)

Operating profit

1,473

1,377

6,023

5,465

Other income (expense), net (OI&E)

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)

(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

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

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

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

Stock compensation

419

387

(Gains) losses on sales of assets

(1)

(127)

Deferred taxes

115

(21)

(19)

(210)

Increase (decrease) from changes in:

Accounts receivable

143

(244)

Inventories

(231)

(277)

(528)

Prepaid expenses and other current assets

Accounts payable and accrued expenses

125

Accrued compensation

106

115

(28)

(12)

Income taxes payable

110

191

597

Changes in funded status of retirement plans

(7)

Other

(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

—

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

(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

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

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

335

588

Proceeds from CHIPS Act incentives

—

335

—

Total cash benefit related to the CHIPS Act

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

22 %

Other:

Revenue

146

220

(34) %

Operating profit *

(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

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:

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

SOURCE Texas Instruments Incorporated