Texas Instruments Incorporated (TXN) Q3 2025 Financial Results Summary
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Texas Instruments (TXN) Q3 2025 Financial Results Summary
Texas Instruments Incorporated (TI) (Nasdaq: TXN) released its third-quarter financial results on October 21, 2025. Below is a summary of the key financial metrics and highlights from the report.
Key Financial Metrics
- Revenue:
- Q3 2025: $4.74 billion
- Q3 2024: $4.15 billion
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Change: +14% year-over-year
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Operating Profit:
- Q3 2025: $1.66 billion
- Q3 2024: $1.55 billion
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Change: +7% year-over-year
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Net Income:
- Q3 2025: $1.36 billion
- Q3 2024: $1.36 billion
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Change: 0% year-over-year
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Earnings Per Share (EPS):
- Q3 2025: $1.48
- Q3 2024: $1.47
- Change: +1% year-over-year
Cash Generation
- Cash Flow from Operations (Trailing 12 Months):
- Q3 2025: $6.90 billion
- Q3 2024: $6.24 billion
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Change: +10% year-over-year
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Free Cash Flow (Trailing 12 Months):
- Q3 2025: $2.42 billion
- Q3 2024: $1.47 billion
- Change: +65% year-over-year
- Free Cash Flow as a percentage of revenue: 14.0% in Q3 2025; 9.3% in Q3 2024.
Shareholder Returns
- Total Cash Returned to Shareholders (Trailing 12 Months):
- Total: $6.56 billion
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Change: +26% year-over-year.
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Dividends Paid:
- Q3 2025: $1.24 billion
- Q3 2024: $1.19 billion
- Change: +4% year-over-year.
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Stock Repurchases:
- Q3 2025: $119 million
- Q3 2024: $318 million
- Change: +253% year-over-year.
Outlook
- For Q4 2025, TI projects:
- Revenue range: $4.22 billion to $4.58 billion
- Earnings per share: $1.13 to $1.39
Segment Performance
- Analog Segment:
- Revenue: $3.73 billion, up 16% from $3.22 billion year-over-year.
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Operating Profit: $1.49 billion, up 13% from $1.32 billion year-over-year.
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Embedded Processing:
- Revenue: $709 million, up 9% from $653 million year-over-year.
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Operating Profit: $108 million, down 1% from $109 million year-over-year.
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Other:
- Revenue: $304 million, up 11% from $275 million year-over-year.
- Operating Profit: $69 million, down 47% from $129 million year-over-year.
Financial Summation
- TI continues to demonstrate a strong operational performance with revenue growth across all end markets.
- Cash flow capacity is bolstered with a reported cash flow from operations of $6.90 billion, highlighting the robustness of TI’s business model.
- Investment continues in R&D ($3.9 billion) and capital expenditures ($4.8 billion), showcasing TI’s commitment to innovation and capacity expansion.
- TI actively returned $6.56 billion to shareholders over the past year, consisting of dividends and stock repurchases. The company declared a quarterly dividend of $1.36 per share, reflecting a 4% increase from the previous year.
Conclusion
Texas Instruments’ Q3 financial results reveal solid growth and operational strength, particularly in revenue and cash generation, alongside a consistent commitment to returning value to shareholders through dividends and share repurchases.
| Consolidated Statements of Income | 2025 | 2024 |
|---|---|---|
| Revenue | $4,742 | $4,151 |
| Cost of revenue (COR) | 2,019 | 1,677 |
| Gross profit | 2,723 | 2,474 |
| Research and development (R&D) | 518 | 492 |
| Selling, general and administrative (SG&A) | 457 | 428 |
| Restructuring charges/other | 85 | — |
| Operating profit | 1,663 | 1,554 |
| Other income (expense), net (OI&E) | 62 | 131 |
| Interest and debt expense | 141 | 131 |
| Income before income taxes | 1,584 | 1,554 |
| Provision for income taxes | 220 | 192 |
| Net income | $1,364 | $1,362 |
| Diluted earnings per common share | $1.48 | $1.47 |
| Average shares outstanding: Basic | 909 | 913 |
| Diluted | 914 | 920 |
| Cash dividends declared per common share | $1.36 | $1.30 |
| Consolidated Balance Sheets | September 30, 2025 | September 30, 2024 |
|---|---|---|
| Cash and cash equivalents | $3,311 | $2,589 |
| Short-term investments | 1,875 | 6,163 |
| Accounts receivable, net of allowances of ($21) and ($23) | 2,062 | 1,862 |
| Raw materials | 431 | 393 |
| Work in process | 2,460 | 2,081 |
| Finished goods | 1,938 | 1,822 |
| Inventories | 4,829 | 4,296 |
| Prepaid expenses and other current assets | 1,799 | 962 |
| Total current assets | 13,876 | 15,872 |
| Property, plant and equipment at cost | 17,314 | 15,464 |
| Accumulated depreciation | -4,966 | -3,662 |
| Property, plant and equipment | 12,348 | 11,802 |
| Goodwill | 4,362 | 4,362 |
| Deferred tax assets | 1,089 | 941 |
| Capitalized software licenses | 237 | 229 |
| Overfunded retirement plans | 251 | 184 |
| Other long-term assets | 2,841 | 1,931 |
| Total assets | $35,004 | $35,321 |
| Current portion of long-term debt | $500 | $1,049 |
| Accounts payable | 779 | 794 |
| Accrued compensation | 724 | 721 |
| Income taxes payable | 79 | 108 |
| Accrued expenses and other liabilities | 1,036 | 1,014 |
| Total current liabilities | 3,118 | 3,686 |
| Long-term debt | 13,546 | 12,844 |
| Underfunded retirement plans | 125 | 117 |
| Deferred tax liabilities | 60 | 54 |
| Other long-term liabilities | 1,528 | 1,352 |
| Total liabilities | 18,377 | 18,053 |
| Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741 | 1,741 | 1,741 |
| Paid-in capital | 4,410 | 3,813 |
| Retained earnings | 52,369 | 52,304 |
| Treasury common stock at cost – September 30, 2025 – 832; September 30, 2024 – 829 | -41,744 | -40,395 |
| Accumulated other comprehensive income (loss), net of taxes (AOCI) | -149 | -195 |
| Total stockholders’ equity | 16,627 | 17,268 |
| Total liabilities and stockholders’ equity | $35,004 | $35,321 |