# Texas Instruments Incorporated (TXN) Q2 2025 Financial Results Summary
DALLAS (July 22, 2025) – Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported its financial results for the second quarter of 2025. Below are the key highlights of the report.
## Financial Highlights
– **Revenue**:
– Q2 2025 revenue was **$4.45 billion**, a **16% increase** compared to **$3.82 billion** in Q2 2024.
– Revenue increased **9% sequentially** from the previous quarter.
– **Operating Profit**:
– Operating profit for Q2 2025 was **$1.56 billion**, reflecting a **25% growth** from **$1.25 billion** in Q2 2024.
– **Net Income**:
– Net income reached **$1.30 billion**, up **15%** from **$1.13 billion** in the same quarter last year.
– **Earnings per Share (EPS)**:
– EPS increased to **$1.41**, showing a **16% rise** from **$1.22** in Q2 2024. This includes a **2-cent benefit** not included in the original guidance.
## Cash Generation
– **Cash Flow from Operations**:
– The trailing 12-month cash flow from operations stood at **$6.4 billion**, reflecting a **0% change** compared to **$6.45 billion** in the previous year.
– **Free Cash Flow**:
– Free cash flow amounted to **$1.8 billion**, an **18% increase** from **$1.49 billion** a year earlier, with **10.6% of revenue** accounted as free cash flow.
## Shareholder Returns
– **Dividends**:
– Cash dividends declared in Q2 2025 were **$1.36 per share**, an increase of **4.6%** over **$1.30** per share in Q2 2024.
– Total dividends paid for the trailing 12 months reached **$1.24 billion**, a **5% increase** from **$1.18 billion** in the previous year.
– **Stock Repurchases**:
– TI repurchased **$302 million** worth of stock in the quarter, a substantial **878% increase** from **$71 million** in Q2 2024.
– Total cash returned to shareholders was **$1.54 billion**, reflecting a **38% increase** from **$4.86 billion** last year.
## Outlook for Q3 2025
– TI’s guidance for Q3 2025 includes projected revenue between **$4.45 billion and $4.80 billion** and earnings per share estimated between **$1.36 and $1.60**. This does not account for changes associated with newly enacted U.S. tax legislation.
## Segment Performance
– **Analog**:
– Revenue was **$3.45 billion**, a **18% increase** from **$2.93 billion** in Q2 2024.
– Operating profit reached **$1.33 billion**, up **27%** from **$1.05 billion** last year.
– **Embedded Processing**:
– Revenue increased to **$679 million**, reflecting a **10% growth** compared to **$615 million** in Q2 2024.
– Operating profit rose **6%** to **$85 million** from **$80 million**.
– **Other**:
– Revenue was **$317 million**, reflecting a **14% increase** compared to **$279 million** in Q2 2024.
– Operating profit for this segment was **$153 million**, a **26% increase** from **$121 million**.
## Balance Sheet Highlights
– **Total Assets**: As of June 30, 2025, total assets were **$34.93 billion**, slightly down from **$35.05 billion** in the same period last year.
– **Total Liabilities**: Total liabilities increased to **$18.53 billion**, compared to **$17.83 billion** last year.
– **Stockholder Equity**: Decreased to **$16.40 billion** from **$17.21 billion** in Q2 2024.
TI’s robust performance reflects strong market demand, particularly in the industrial sector, and their effective business strategies in managing expenses and capital investments. This solid performance enabled significant returns to shareholders through dividends and stock repurchases.
### Consolidated Statements of Income
(In millions, except per-share amounts)
| 2025 | 2024 | |
|---|---|---|
| Revenue | $ 4,448 | $ 3,822 |
| Cost of revenue (COR) | 1,873 | 1,611 |
| Gross profit | 2,575 | 2,211 |
| Research and development (R&D) | 527 | 498 |
| Selling, general and administrative (SG&A) | 485 | 465 |
| Operating profit | 1,563 | 1,248 |
| Other income (expense), net (OI&E) | 48 | 130 |
| Interest and debt expense | 133 | 131 |
| Income before income taxes | 1,478 | 1,247 |
| Provision for income taxes | 183 | 120 |
| Net income | $ 1,295 | $ 1,127 |
| Diluted earnings per common share | $ 1.41 | $ 1.22 |
| Average shares outstanding: | ||
| Basic | 908 | 912 |
| Diluted | 912 | 919 |
| Cash dividends declared per common share | $ 1.36 | $ 1.30 |
### Consolidated Balance Sheets
(In millions, except par value)
| Assets | June 30, 2025 | June 30, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 3,044 | $ 2,740 |
| Short-term investments | 2,315 | 6,948 |
| Accounts receivable, net of allowances | 1,934 | 1,711 |
| of ($24) and ($28) | ||
| Raw materials | 402 | 405 |
| Work in process | 2,429 | 2,072 |
| Finished goods | 1,981 | 1,629 |
| Inventories | 4,812 | 4,106 |
| Prepaid expenses and other current assets | 2,379 | 1,284 |
| Total current assets | 14,484 | 16,789 |
| Property, plant and equipment at cost | 16,878 | 14,622 |
| Accumulated depreciation | -4,557 | -3,448 |
| Property, plant and equipment | 12,321 | 11,174 |
| Goodwill | 4,362 | 4,362 |
| Deferred tax assets | 1,096 | 905 |
| Capitalized software licenses | 248 | 230 |
| Overfunded retirement plans | 253 | 167 |
| Other long-term assets | 2,169 | 1,421 |
| Total assets | $ 34,933 | $ 35,048 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ — | $ 1,049 |
| Accounts payable | 881 | 858 |
| Accrued compensation | 595 | 569 |
| Income taxes payable | 53 | 178 |
| Accrued expenses and other liabilities | 963 | 983 |
| Total current liabilities | 2,492 | 3,637 |
| Long-term debt | 14,043 | 12,842 |
| Underfunded retirement plans | 122 | 113 |
| Deferred tax liabilities | 63 | 55 |
| Other long-term liabilities | 1,810 | 1,187 |
| Total liabilities | 18,530 | 17,834 |
| Stockholders’ equity: | ||
| Preferred stock, $25 par value. Shares | — | — |
| authorized – 10; none issued | ||
| Common stock, $1 par value. Shares | 1,741 | 1,741 |
| authorized – 2,400; shares issued – 1,741 | ||
| Paid-in capital | 4,245 | 3,666 |
| Retained earnings | 52,249 | 52,135 |
| Treasury common stock at cost | ||
| Shares: | -41,676 | -40,128 |
| June 30, 2025 – 832; June 30, 2024 – 828 | ||
| Accumulated other comprehensive income | -156 | -200 |
| (loss), net of taxes (AOCI) | ||
| Total stockholders’ equity | 16,403 | 17,214 |
| Total liabilities and stockholders’ equity | $ 34,933 | $ 35,048 |
