"How much does Texas Instruments make?" – it's a question that delves into the financial heart of one of the world's leading semiconductor companies. Are you curious about their revenue, their profits, or perhaps how these figures have changed over time? Understanding Texas Instruments' financial performance requires a look at various metrics, and we're here to guide you through it.
Texas Instruments (TI) is a global semiconductor design and manufacturing company that develops analog ICs and embedded processors. These products are crucial components in a vast array of electronic devices, from industrial machinery and automotive systems to personal electronics and communications equipment. Their pervasive presence in modern technology means their financial health is a significant indicator within the broader tech industry.
Let's embark on a journey to uncover the financial landscape of Texas Instruments, step-by-step.
Step 1: Grasping the Basics – Revenue vs. Net Income
Before we dive into the numbers, it's essential to understand two fundamental financial terms:
Revenue (or Sales): This is the total amount of money a company generates from its core business operations over a specific period. Think of it as the top line – the grand total of all sales before any expenses are deducted.
Net Income (or Profit): This is the money left over after all expenses, including operating costs, interest, and taxes, have been subtracted from the revenue. This is the "bottom line" and represents the company's actual profit.
Both revenue and net income are crucial, but they tell different stories. High revenue with low net income could indicate high operating costs, while strong net income reflects efficient management and profitability.
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| How Much Does Texas Instruments Make |
Step 2: Unveiling the Latest Annual Financials (2024 & 2023)
To answer "how much does Texas Instruments make," we'll start with their most recent full fiscal year data. Companies typically report their annual results after the close of their fiscal year, which for Texas Instruments is December 31st.
Sub-heading: 2024 Annual Performance
Revenue for 2024: Texas Instruments reported an annual revenue of $15.641 billion in 2024. This represented a 10.72% decline from their 2023 revenue.
Net Income for 2024: For the same period, TI's annual net income was $4.775 billion, marking a 26.28% decline compared to 2023.
Sub-heading: 2023 Annual Performance
Revenue for 2023: In 2023, Texas Instruments' annual revenue stood at $17.519 billion. This was a 12.53% decline from their 2022 revenue.
Net Income for 2023: TI's net income in 2023 was $6.477 billion, a 25.64% decline from 2022.
These figures indicate a period of decline in both revenue and net income for Texas Instruments in 2023 and 2024, reflecting broader market conditions or specific company challenges.
Tip: Read mindfully — avoid distractions.
Step 3: Examining Recent Quarterly Performance (Q1 2025)
While annual figures provide a broad overview, quarterly reports offer a more up-to-date snapshot of a company's financial health and recent trends.
Sub-heading: Q1 2025 Highlights
Texas Instruments reported their first-quarter 2025 results on April 23, 2025. Here's a breakdown:
Revenue: TI's revenue for Q1 2025 was $4.07 billion. This marked an 11% increase year-over-year compared to Q1 2024 ($3.661 billion), and a 2% sequential increase from Q4 2024.
Net Income: Net income for Q1 2025 was $1.18 billion, a 7% increase year-over-year.
Earnings Per Share (EPS): Diluted EPS came in at $1.28, also up 7% year-over-year.
Gross Margin: Held steady at 56.8%.
Operating Profit: Totaled $1.32 billion, representing 32.5% of revenue.
The Q1 2025 results show a positive turn, indicating a recovery in revenue and net income after the declines observed in the full fiscal years of 2023 and 2024.
Step 4: Delving Deeper – Segment Performance
Texas Instruments' business is primarily divided into two main segments:
Analog: This segment produces a vast range of products that sense, measure, power, connect, and convert signals. These are fundamental to virtually all electronic devices.
Embedded Processing: This segment includes microcontrollers, digital signal processors (DSPs), and applications processors, which act as the "brains" of many electronic systems.
Sub-heading: Q1 2025 Segment Breakdown
Analog Segment:
Revenue: $3.21 billion (up 13% year-over-year).
Operating Profit: $1.21 billion (surging 20%). This segment was a standout performer in Q1 2025, driven by strong demand in power products.
Embedded Processing Segment:
Revenue: $647 million (down 1% year-over-year).
Operating Profit: $40 million (a significant 62% decline), impacted by higher costs and underutilization at their Lehi fabrication plant.
This breakdown highlights the strong performance of the Analog segment in early 2025, while the Embedded Processing segment faced some headwinds.
QuickTip: Repeat difficult lines until they’re clear.
Step 5: Understanding Profitability Metrics
Beyond just revenue and net income, profit margins provide insights into how efficiently a company converts its sales into profit.
Gross Profit Margin: (Gross Profit / Revenue) x 100%. This shows the percentage of revenue left after deducting the cost of goods sold.
Net Profit Margin: (Net Income / Revenue) x 100%. This indicates the percentage of revenue that translates into actual profit for the company.
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Sub-heading: Recent Profit Margins
Gross Margin (Q1 2025): 58.02%
Average Gross Margin (2024): 59.29%
Average Gross Margin (2023): 65.32%
Net Profit Margin (Q1 2025): 30.21%
Average Net Profit Margin (2024): 32.46%
Average Net Profit Margin (2023): 39.69%
While still strong, both gross and net profit margins have seen some decline in recent periods, which could be due to factors like increased manufacturing costs or a shift in product mix.
Step 6: The Long-Term Perspective & Capital Allocation
Texas Instruments has a stated long-term objective of growing free cash flow per share. This metric is highly valued by investors as it represents the cash a company has left after paying for its operations and capital expenditures, which can then be used for dividends, share buybacks, or debt reduction.
Free Cash Flow (Trailing 12 months ending Q1 2025): $1.7 billion, an 82% increase year-over-year.
Shareholder Returns: In Q1 2025 alone, TI returned $1.891 billion to shareholders, through $1.238 billion in dividends and $653 million in share repurchases. Over the trailing 12 months ending Q1 2025, total cash returned to shareholders was $6.43 billion.
TI's consistent dividend increases (21 consecutive years) and significant share count reduction (47% reduction from 2004-2024) demonstrate their commitment to returning value to shareholders, a key aspect of their financial strategy.
Step 7: Where to Find More Information
For the most detailed and up-to-date financial information, it's always best to go directly to the source:
Texas Instruments Investor Relations Website: This is your primary resource for annual reports (10-K filings), quarterly reports (10-Q filings), earnings call transcripts, presentations, and webcast replays. Look for the "Financial Information" or "SEC Filings" sections.
SEC Filings: Publicly traded companies in the U.S. are required to file detailed financial statements with the Securities and Exchange Commission (SEC). These are publicly accessible through the SEC's EDGAR database.
Understanding a company's financial statements requires some familiarity with accounting principles, but key sections like the Income Statement (for revenue and net income), Balance Sheet (for assets and liabilities), and Cash Flow Statement (for cash generation and usage) are often quite clear.
QuickTip: Stop and think when you learn something new.
FAQ: How to Understand Texas Instruments' Financial Performance
How to interpret Texas Instruments' revenue trends?
Revenue trends indicate growth or contraction in the company's sales. A rising revenue trend is generally positive, while a declining trend (as seen in 2023 and 2024 for TI) might signal market challenges or increased competition. The Q1 2025 rebound for TI is a positive sign.
How to analyze Texas Instruments' net income?
Net income is the ultimate measure of profitability. A higher net income indicates better financial health and efficiency. Fluctuations in net income often mirror revenue changes but can also be affected by operational costs, taxes, and other expenses.
How to find Texas Instruments' latest financial reports?
The easiest way is to visit the "Investor Relations" section of Texas Instruments' official website (TI.com) and look for "SEC Filings" or "Financial Information." You can also search for "TXN" (their stock ticker) on financial news websites or the SEC's EDGAR database.
How to understand Texas Instruments' segment results?
Segment results (like Analog and Embedded Processing) show which parts of the business are performing well and which might be facing challenges. This helps investors understand the underlying drivers of the company's overall financial performance.
QuickTip: Slow down when you hit numbers or data.
How to assess Texas Instruments' profitability margins?
Profitability margins (gross and net) reveal how efficiently TI converts revenue into profit. Higher margins generally indicate better cost control and pricing power. A declining margin could suggest rising costs or increased price competition.
How to interpret Texas Instruments' free cash flow?
Free cash flow (FCF) is a crucial indicator of financial strength and flexibility. A strong and growing FCF allows a company to invest in future growth, pay dividends, and repurchase shares without incurring additional debt.
How to compare Texas Instruments' financial performance to competitors?
Comparing TI's revenue, net income, and profit margins to those of its peers (e.g., Analog Devices, NXP Semiconductors) provides context on its competitive position and relative financial health within the semiconductor industry.
How to gauge Texas Instruments' shareholder returns?
Shareholder returns, such as dividends paid and share repurchases, indicate how much value the company is returning directly to its owners. Consistent dividend increases and share buybacks are often seen as positive signs for investors.
How to track Texas Instruments' stock performance in relation to its earnings?
Stock performance is often influenced by earnings reports. Positive earnings surprises can lead to stock price increases, while negative surprises can cause declines. Keeping an eye on how the market reacts to TI's quarterly and annual reports is key.
How to identify potential risks in Texas Instruments' financials?
Look for consistent declines in revenue or net income, shrinking profit margins, increasing debt, or negative free cash flow. These could be red flags indicating underlying operational or market challenges that warrant further investigation.
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