TI reports Q4 2025 and 2025 financial results and shareholder returns
Rhea-AI Summary
Texas Instruments (Nasdaq: TXN) reported Q4 2025 revenue of $4.42B, net income of $1.16B and diluted EPS of $1.27. Revenue rose 10% year-over-year but fell 7% sequentially. Trailing 12-month cash flow from operations was $7.15B and free cash flow was $2.94B (16.6% of revenue). TI returned about $6.5B to shareholders over the past 12 months, including dividends and repurchases. Q1 2026 outlook: revenue $4.32B–$4.68B and EPS $1.22–$1.48. Annual highlights include Analog revenue of $14.01B (+15%) and total 2025 revenue of $17.68B.
Positive
- Revenue +10% year-over-year in Q4 2025 to $4.42B
- Trailing 12-month cash flow from operations of $7.15B (+13%)
- Free cash flow +96% year-over-year to $2.94B (16.6% of revenue)
- Returned ~$6.5B to shareholders in the past 12 months
- Analog annual revenue $14.01B (+15% YoY)
Negative
- Other segment operating profit fell 91% in Q4 2025
- Other segment annual operating profit declined 39% in 2025
- Embedded Processing operating profit down 14% year-over-year for 2025
- Short-term investments decreased from $4.38B to $1.66B (≈62% decline)
News Market Reaction
On the day this news was published, TXN gained 0.02%, reflecting a mild positive market reaction. Argus tracked a peak move of +5.1% during that session. Our momentum scanner triggered 53 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $39M to the company's valuation, bringing the market cap to $196.79B at that time. Trading volume was elevated at 2.2x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TXN gained 1.7% while key semiconductor peers like MU (-1.61%), ARM (-1.41%), QCOM (-0.18%), ADI (-0.37%) and INTC (-4.04%) were down, pointing to a stock-specific reaction to its earnings rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 21 | Q3 2025 earnings | Positive | +0.7% | Q3 2025 revenue and EPS grew with strong cash generation and shareholder returns. |
| Jul 22 | Q2 2025 earnings | Positive | -13.3% | Strong Q2 2025 growth and guidance were followed by a sharp negative price reaction. |
| Apr 23 | Q1 2025 earnings | Positive | +6.6% | Q1 2025 revenue and net income grew, supporting a solid positive share reaction. |
| Jan 23 | Q4 2024 earnings | Negative | -7.5% | Q4 2024 showed revenue and profit declines, and the stock fell in response. |
| Oct 22 | Q3 2024 earnings | Negative | +4.0% | Q3 2024 revenue and operating profit fell year over year, yet shares rose modestly. |
Earnings headlines often move TXN, with a mix of aligned and divergent reactions. Strong or improving fundamentals sometimes saw sharp declines, while weaker quarters were not always punished, indicating nuanced investor expectations around guidance and cycle positioning.
Over the past five earnings cycles, TXN has reported steady revenue growth and robust cash generation, especially through 2025. Q1–Q3 2025 featured year-over-year revenue gains and rising free cash flow, while Q4 2024 showed declining operating profit and net income. Across these updates, TXN consistently highlighted Analog and Embedded Processing performance, capital investment levels, and significant cash returns to shareholders, framing today’s Q4 2025 and full-year 2025 results as a continuation of that cash-focused strategy.
Historical Comparison
In the last five earnings-related releases, TXN’s average move was 6.43%. Today’s 1.7% gain is smaller than typical, suggesting a more measured reaction to the Q4 2025 results and outlook.
Across Q4 2024 through Q3 2025, TXN moved from declining profit metrics toward resumed revenue and free cash flow growth, with recurring emphasis on Analog strength, capital investment, and substantial cash returns to shareholders.
Market Pulse Summary
This announcement details Q4 2025 and full-year 2025 performance, highlighting $4.423B in quarterly revenue, trailing 12‑month cash from operations of $7.153B, and free cash flow of $2.938B. Management also issued Q1 2026 guidance for revenue of $4.32B–$4.68B and EPS of $1.22–$1.48. Compared with prior earnings releases, the focus remains on Analog and Embedded Processing strength, heavy capital investment, and substantial cash returns to shareholders. Investors may watch future updates on segment trends, free cash flow, and capital intensity.
Key Terms
free cash flow financial
non-GAAP financial
CHIPS Act regulatory
investment tax credit financial
effective tax rate financial
forward-looking statements regulatory
operating profit financial
AI-generated analysis. Not financial advice.
Conference call at 3:30 p.m. Central time today on ti.com/ir
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 increased10% from the same quarter a year ago. - "Our cash flow from operations of
$7.2 billion $2.9 billion - "Over the past 12 months we invested
$3.9 billion $4.6 billion $6.5 billion - "TI's first quarter outlook is for revenue in the range of
$4.32 billion $4.68 billion $1.22 $1.48
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from
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 % | ||||
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 | ||||
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 ( | 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, | — | — | ||||
Common stock, | 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 | ||
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 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 |
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
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SOURCE Texas Instruments Incorporated
FAQ
What were Texas Instruments (TXN) Q4 2025 revenue and EPS reported on January 27, 2026?
How much cash did TXN generate and return to shareholders in the trailing 12 months?
What guidance did Texas Instruments give for Q1 2026 (TXN)?
Which TI business segment showed the largest annual revenue gain in 2025?
Did TI's free cash flow margin change materially in 2025?
Were there notable declines in any TI segments in the 2025 results?
