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Texas Instruments plans to invest more than $60 billion to manufacture billions of foundational semiconductors in the U.S.
Leading U.S. companies Apple, Ford, Medtronic, NVIDIA and SpaceX strengthen partnerships with TI to unleash the next era of American innovation NEWS HIGHLIGHTS: More than $60 billion investment includes seven U.S. semiconductor fabs across three manufacturing mega-sites in Texas and Utah supporting more than 60,000 new U.S. jobs Largest investment in foundational semiconductor manufacturing in U.S. history, building on TI's almost-100-year legacy TI's largest mega-site in Sherman, Texas includes investment of up to $40 billion dollars for four fabs: SM1 and SM2 – already underway – and two additional fabs, SM3 and SM4 Leverages TI's strengths as a global technology and manufacturing leader to advance critical innovations from vehicles to smartphones to data centers DALLAS, June 18, 2025 /PRNewswire/ — Texas Instruments (TI) (Nasdaq: TXN) today announced its plans to invest more than $60 billion across seven U.S. semiconductor fabs, making this the largest investment in foundational semiconductor manufacturing in U.S. history. Working with the Trump administration and building on the company's nearly 100-year legacy, TI is expanding its U.S. manufacturing capacity to supply the growing need for semiconductors that will advance critical innovations from vehicles to smartphones to data centers. Combined, TI's new manufacturing mega-sites in Texas and Utah will support more than 60,000 U.S. jobs. 'TI is building dependable, low-cost 300mm capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system,' said Haviv Ilan, president and CEO of Texas Instruments. 'Leading U.S. companies such as Apple, Ford, Medtronic, NVIDIA and SpaceX rely on TI's world-class technology and manufacturing expertise, and we are honored to work alongside them and the U.S. government to unleash what's next in American innovation.' 'For nearly a century, Texas Instruments has been a bedrock American company driving innovation in technology and manufacturing,' said U.S. Secretary of Commerce, Howard Lutnick. 'President Trump has made it a priority to increase semiconductor manufacturing in America – including these foundational semiconductors that go into the electronics that people use every day. Our partnership with TI will support U.S. chip manufacturing for decades to come.' Unleashing what's next in American innovation Today, TI is the largest foundational semiconductor manufacturer in the U.S., producing analog and embedded processing chips that are critical for smartphones, vehicles, data centers, satellites and nearly every other electronic device. In order to meet the steadily growing demand for these essential chips, TI is building on its legacy of technology leadership and expanding its U.S. manufacturing presence to help its customers pioneer the next wave of technological breakthroughs. Igniting intelligence with Apple 'Texas Instruments' American-made chips help bring Apple products to life, and together, we'll continue to create opportunity, drive innovation, and invest in the future of advanced manufacturing across the U.S.,' said Apple's CEO Tim Cook. Fueling the future with Ford Ford and TI are working to strengthen American manufacturing, combining Ford's automotive expertise with TI's semiconductor technology to help drive innovation and secure a robust, domestic supply chain for the future of mobility. 'At Ford, 80% of the vehicles we sell in the U.S. are assembled in the U.S., and we are proud to stand with technology leaders like TI that continue to invest in manufacturing in the U.S.,' said Jim Farley, President and CEO of Ford Motor Company. Connecting patient care with Medtronic Medtronic and TI are partnering to improve lives when it matters most. 'At Medtronic, our life-saving medical technologies rely on semiconductors to deliver precision, performance, and innovation at scale,' said Geoff Martha, Medtronic chairman and CEO. 'Texas Instruments has been a vital partner – especially during the global chip shortages – helping us maintain supply continuity and accelerate the development of breakthrough therapies. We're proud to leverage TI's U.S.-manufactured semiconductors as we work to transform healthcare and improve outcomes for patients around the world.' Advancing AI with NVIDIA NVIDIA is partnering with TI to unleash the next generation of artificial intelligence architectures. 'NVIDIA and TI share the goal to revitalize U.S. manufacturing by building more of the infrastructure for AI factories here in the U.S.,' said Jensen Huang, founder and CEO of NVIDIA. 'We look forward to continuing our collaboration with TI by developing products for advanced AI infrastructure.' Securing high-speed satellite internet with SpaceX SpaceX is increasingly leveraging TI's high-speed process technology to connect its Starlink satellite internet service with TI's latest 300mm SiGe technology manufactured in Sherman, Texas. 'Our fundamental mission is to revolutionize global connectivity and eliminate the digital divide. Core to this mission is constantly pushing the boundaries of what is possible,' said Gwynne Shotwell, president and COO of SpaceX. 'SpaceX is manufacturing tens of thousands of Starlink kits a day – all right here in the U.S. – and we are making huge investments in PCB manufacturing and silicon packaging to expand even further. TI's U.S.-made semiconductors are crucial for securing a U.S. supply chain for our products, and their advanced silicon manufacturing capabilities provide the performance and reliability needed to help us meet the growing demand for high-speed internet all around the world.' Backed by the strength of TI's U.S. manufacturing presence TI is a driving force behind the return and expansion of semiconductor manufacturing in the U.S. The company's more than $60 billion investment in U.S. manufacturing includes building and ramping seven, large-scale, connected fabs. Combined, these fabs across three manufacturing mega-sites in Texas and Utah will manufacture hundreds of millions of U.S.-made chips daily that will ignite a bold new chapter in American innovation. Sherman, Texas: SM1, TI's first new fab in Sherman will begin initial production this year, just three years after breaking ground. Construction is also complete on the exterior shell of SM2, TI's second new fab in Sherman. Incremental investment plans include two additional fabs, SM3 and SM4, to support future demand. Richardson, Texas: TI's second fab in Richardson, RFAB2, continues to ramp to full production and builds on the company's legacy of introducing the world's first 300mm analog fab, RFAB1, in 2011. Lehi, Utah: TI is ramping LFAB1, the company's first 300mm wafer fab in Lehi. Construction is also well underway on LFAB2, TI's second Lehi fab that will connect to LFAB1. Learn more Press kit (includes images, video b-roll and fact sheet) Additional press kits (Sherman, Texas, Lehi, Utah, and Richardson, Texas) 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, communications equipment and enterprise systems. 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
Yahoo
28-04-2025
- Business
- Yahoo
Why Wolfspeed Rocketed 27% Higher (Again) on Monday
Shares of silicon carbide chipmaker Wolfspeed (NYSE: WOLF) rocketed 26.9% on Monday. The move follows on a big up day last Wednesday as well. Wolfspeed doesn't report earnings until May 8, and there wasn't any especially relevant company-specific news today. However, the beginning of earnings season has spurred some cautious optimism that Wolfspeed's end markets might be recovering. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » With such a sky-high short interest of 41% of shares outstanding and 64% of Wolfspeed's float as of April 15, it appears as though many short sellers have decided -- or have been forced -- to close out their positions, leading to a "short squeeze." Wolfspeed has spent billions of dollars and taken on significant debt in order to build out silicon carbide (SiC) manufacturing capacity in the U.S. SiC is a difficult material to work with, but it also makes for a more conductive chip, which is especially useful in high-voltage, high-temperature applications like electric vehicles (EV) and other industrial infrastructure. While a strong industrial and auto market seems far-fetched in light of the administration's tariff policies, industrial and auto chips have actually already been in a protracted downturn ever since interest rates shot up at the end of 2022 and into 2023. Starting in 2023, the industrial chip market saw seven straight quarters of declines. Over that time, Wolfspeed's stock has cratered under the weight of its ambitious investments and tepid demand. The stock cratered another 47% in March after it was suspected the company might not receive its expected $750 million in CHIPS Act money. However, last week on April 23, chip giant Texas Instruments (NASDAQ: TXN), which also has a high concentration in auto and industrial markets, noted it was seeing a "broad recovery across sectors and geographies," with low inventories across all end markets. Also encouraging was that TI executive Haviv Ilan said he believed the recovery was real and not just a pull-in to get ahead of impending tariffs. While Texas Instruments doesn't make SiC chips as Wolfspeed does, it is known as somewhat of a bellwether in the industrial and auto chip markets. Thus, Wolfspeed's stock took off the next day on Wednesday of last week, and the rally held up through Friday. So why the spike today? It's hard to say, but there's the potential that some hedge funds may have received margin calls over the weekend from banks and were therefore forced to close out more of their short positions by buying the stock back today. Despite the past week's massive short squeeze that has lifted Wolfspeed's shares some 65% off of their lows to begin last week, investors should not take this as an "all clear." Wolfspeed is still heavily indebted, and it may not receive the promised CHIPS Act money, which could stress the company despite signs of an end-market recovery. Moreover, Wolfspeed has appointed a new CEO, who will begin his tenure this week on May 1. A new company head adds even more uncertainty. There are other automotive/industrial chip plays with much less risk than Wolfspeed at the moment and which should also see a big upside if a recovery materializes. Investors would take much less risk with one of Wolfspeed's profitable rivals, rather than this loss-making meme stock, which is more like a lottery ticket at this point. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Billy Duberstein and/or his clients have positions in Texas Instruments. The Motley Fool has positions in and recommends Texas Instruments and Wolfspeed. The Motley Fool has a disclosure policy. Why Wolfspeed Rocketed 27% Higher (Again) on Monday was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
TXN Q1 Earnings Call: Industrial Recovery and Tariff Risks Shape Outlook
Analog chip manufacturer Texas Instruments (NASDAQ:TXN) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 11.1% year on year to $4.07 billion. The company expects next quarter's revenue to be around $4.35 billion, close to analysts' estimates. Its GAAP profit of $1.28 per share was 20.2% above analysts' consensus estimates. Is now the time to buy TXN? Find out in our full research report (it's free). Revenue: $4.07 billion vs analyst estimates of $3.91 billion (11.1% year-on-year growth, 4.1% beat) EPS (GAAP): $1.28 vs analyst estimates of $1.06 (20.2% beat) Adjusted EBITDA: $1.77 billion vs analyst estimates of $1.66 billion (43.5% margin, 6.2% beat) Revenue Guidance for Q2 CY2025 is $4.35 billion at the midpoint, roughly in line with what analysts were expecting EPS (GAAP) guidance for Q2 CY2025 is $1.34 at the midpoint, beating analyst estimates by 11.9% Operating Margin: 32.5%, down from 35.1% in the same quarter last year Free Cash Flow was -$274 million compared to -$231 million in the same quarter last year Inventory Days Outstanding: 243, in line with the previous quarter Market Capitalization: $148 billion Texas Instruments' first quarter results reflected improvement across key end markets, particularly in industrial and automotive. Management attributed the revenue growth to broad-based recovery, with CEO Haviv Ilan noting, 'We continue to see recovery across our end markets, with industrial showing broad recovery across sectors and geographies.' The company also highlighted that customer inventories are at low levels, which contributed to stronger ordering activity and sequential growth in both Analog and Embedded Processing segments. Looking ahead, management's guidance for the next quarter remains cautious due to ongoing global uncertainty, including tariffs and geopolitical risks affecting supply chains. Ilan emphasized the unpredictable environment, stating, 'We remain cautious as there are many things still changing, and we are working with our customers to understand and support their needs.' The company is preparing for multiple market scenarios and will continue to focus on dependable capacity and supply chain flexibility to address customers' evolving requirements. Management focused on the interplay between broad market recovery and ongoing uncertainty driven by tariffs and supply chain volatility. The quarter's performance benefited from industrial sector strength, while the company's operational flexibility was highlighted as a core advantage. Industrial Market Recovery: Industrial end markets showed broad-based sequential and year-over-year growth, ending a seven-quarter decline. Management described customer orders as reflecting genuinely improved demand rather than one-off or anxious purchasing. Low Customer Inventories: Executives noted that customers across all end markets are running lean on inventory, increasing the likelihood of replenishment orders and contributing to recent revenue gains. Tariff and Geopolitical Impact: Management discussed the challenges posed by new tariffs and evolving trade policies, emphasizing the need for "geopolitically dependable capacity" and the company's ability to shift manufacturing and logistics to support customers globally. Operational Flexibility: Texas Instruments outlined its manufacturing footprint, including dual-sourcing capabilities and rapid logistics adaptation, as a key factor in maintaining customer support despite changing external conditions. Competitive Dynamics in China: Leadership acknowledged intensifying competition from Chinese firms, particularly in complex, application-specific analog products, but asserted that Texas Instruments' portfolio breadth and supply chain dependability remain differentiators. Management's outlook for the coming quarters centers on ongoing industrial recovery, the company's flexible manufacturing approach, and the risks posed by tariffs and global supply chain shifts. Continued Industrial Demand: The industrial segment is expected to remain a growth driver as customers maintain low inventories and replenish stock, but management cautions that this trend could shift if economic anxiety increases. Tariff and Supply Chain Uncertainty: New and potential tariffs create risks for both revenue predictability and cost structure. The company's ability to shift production and logistics is positioned as a partial mitigation, but management acknowledges that further changes are possible. Competitive Pressures: Intensifying competition in China, especially from local analog chipmakers, represents an ongoing risk. Management believes Texas Instruments' diverse product offering and manufacturing scale will help defend its market share, but the landscape remains dynamic. Timothy Arcuri (UBS): Asked about the impact of tariffs and whether recent order strength reflected pull-ins. CEO Haviv Ilan clarified that industrial growth appeared consistent and broad-based, not a result of anxious buying ahead of tariffs. Vivek Arya (Bank of America Securities): Queried inventory trends and gross margin direction. CFO Rafael Lizardi said gross margin outperformed expectations due to higher revenue and a greater mix of industrial sales, with factory loadings expected to increase modestly next quarter. Stacy Rasgon (Bernstein Research): Sought clarification on whether customers were pulling forward orders in anticipation of tariffs. Ilan responded that the data pointed to a normal cycle recovery, with no signs of panic ordering. Tore Svanberg (Stifel): Asked about regional disparities in demand due to tariff differences. Ilan explained that Texas Instruments is working closely with customers to optimize manufacturing flows and logistics, leveraging its global footprint. William Stein (Truist Securities): Inquired about growth drivers between pricing and volume, and the competitive environment in China. Ilan stated growth was primarily volume-driven and acknowledged that Chinese competitors are becoming more capable, especially in application-specific areas. In upcoming quarters, the StockStory team will monitor (1) the pace and durability of industrial market recovery and any signs of changing customer inventory strategies, (2) Texas Instruments' execution on shifting manufacturing and logistics to mitigate tariff and supply chain risks, and (3) the impact of intensifying competition in China on both revenue mix and pricing. We are also attentive to how ongoing investments in manufacturing flexibility and product breadth contribute to long-term free cash flow growth. Texas Instruments currently trades at a forward P/E ratio of 28.3×. Should you load up, cash out, or stay put? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Texas Instruments Inc (TXN) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market ...
Revenue: $4.1 billion, up 2% sequentially and 11% year-over-year. Analog Revenue: Increased 13% year-over-year. Embedded Processing Revenue: Approximately flat year-over-year. Other Segment Revenue: Grew 23% from the year-ago quarter. Gross Profit: $2.3 billion, representing 57% of revenue. Operating Expenses: $989 million, up 6% from a year ago. Operating Profit: $1.3 billion, or 33% of revenue, up 3% year-over-year. Net Income: $1.2 billion, or $1.28 per share. Cash Flow from Operations: $849 million for the quarter. Capital Expenditures: $1.1 billion for the quarter. Free Cash Flow: $1.7 billion on a trailing 12-month basis. Dividends Paid: $1.2 billion in the quarter. Stock Repurchases: $653 million in the quarter. Total Debt Outstanding: $12.95 billion with a weighted average coupon of 3.93%. Inventory: $4.7 billion, up $160 million from the prior quarter. Second Quarter Revenue Guidance: Expected to be in the range of $4.17 billion to $4.53 billion. Second Quarter EPS Guidance: Expected to be in the range of $1.21 to $1.47. Warning! GuruFocus has detected 9 Warning Signs with TXN. Release Date: April 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Texas Instruments Inc (NASDAQ:TXN) reported a revenue increase of 11% year-over-year, reaching $4.1 billion in the first quarter of 2025. Analog revenue grew by 13% year-over-year, indicating strong performance in this segment. The industrial market showed a broad recovery, increasing in upper single digits after seven consecutive quarters of decline. Texas Instruments Inc (NASDAQ:TXN) returned $6.4 billion to shareholders over the past 12 months through dividends and stock repurchases. The company maintains a strong balance sheet with $5 billion in cash and short-term investments, providing financial stability. Gross profit margin decreased by 90 basis points sequentially, indicating some pressure on profitability. Operating expenses increased by 6% from the previous year, which could impact overall profitability. The personal electronics market declined by mid-teens, reflecting typical seasonal trends but also indicating potential weakness in this segment. There is high uncertainty in the global market due to tariffs and geopolitical tensions, which could impact future performance. Customer inventories are at low levels across all end markets, which could pose risks if demand does not recover as expected. Q: The guidance is up 7%, better than normal seasonal trends. Is there any indication of pull-ins ahead of tariffs? A: Haviv Ilan, CEO, explained that the recovery in the industrial market is a significant factor, with customer inventories at low levels. While there is uncertainty due to tariffs and geopolitical issues, the company is cautious but does not see an immediate near-term impact on the second quarter. Q: Can you discuss the increase in inventory and its impact on gross margins? A: Rafael Lizardi, CFO, noted that gross margins benefited from higher revenue and a greater mix of industrial sales. Factory loadings were higher than expected due to strong demand, and gross margins are expected to increase slightly in the second quarter. Q: How is Texas Instruments positioned to handle potential impacts from Chinese tariffs? A: Haviv Ilan, CEO, emphasized the company's geopolitically dependable capacity and flexibility in logistics and manufacturing. TI is working closely with customers to navigate the evolving supply chain dynamics and is well-prepared to support them. Q: What is the competitive landscape in China, and how is TI responding? A: Haviv Ilan, CEO, acknowledged intensifying competition in China, particularly from local companies. TI leverages its broad product portfolio, quality, and supply chain capabilities to maintain a competitive edge and meet customer demands. Q: Can you explain the strategy behind share repurchases and the use of debt? A: Rafael Lizardi, CFO, stated that the objective is to return all free cash flow via dividends and repurchases. TI is comfortable with its current cash levels and has room to take on more debt if necessary, as they approach the end of elevated CapEx investments. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
TI reports first quarter 2025 financial results and shareholder returns
Conference call on TI website at 3:30 p.m. Central time today DALLAS, April 23, 2025 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported first quarter revenue of $4.07 billion, net income of $1.18 billion and earnings per share of $1.28. Earnings per share included a 5-cent benefit that was not in the company's original guidance. Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's president and CEO, made the following comments: "Revenue increased 11% from the same quarter a year ago and increased 2% sequentially. All of our markets grew sequentially with the exception of a seasonal decline in personal electronics. "Our cash flow from operations of $6.2 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.7 billion. "Over the past 12 months we invested $3.8 billion in R&D and SG&A, invested $4.7 billion in capital expenditures and returned $6.4 billion to owners. "TI's second quarter outlook is for revenue in the range of $4.17 billion to $4.53 billion and earnings per share between $1.21 and $1.47. In addition, in second quarter, we now expect our effective tax rate to be about 12% to 13%." Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives. Earnings summary (In millions, except per-share amounts)Q1 2025Q1 2024Change Revenue$ 4,069$ 3,66111 % Operating profit$ 1,324$ 1,2863 % Net income$ 1,179$ 1,1057 % Earnings per share$ 1.28$ 1.207 % Cash generationTrailing 12 Months (In millions)Q1 2025Q1 2025Q1 2024Change Cash flow from operations$ 849$ 6,150$ 6,277(2) % Free cash flow$ (14)$ 1,715$ 94082 % Free cash flow % of revenue10.7 % 5.6 % Cash returnTrailing 12 Months (In millions)Q1 2025Q1 2025Q1 2024Change Dividends paid$ 1,238$ 4,850$ 4,6155 % Stock repurchases$ 653$ 1,579$ 193718 % Total cash returned$ 1,891$ 6,429$ 4,80834 % TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIESConsolidated Statements of IncomeFor Three Months Ended March 31, (In millions, except per-share amounts)20252024 Revenue$ 4,069$ 3,661 Cost of revenue (COR) 1,756 1,566 Gross profit 2,313 2,095 Research and development (R&D) 517 478 Selling, general and administrative (SG&A) 472 455 Restructuring charges/other — (124) Operating profit 1,324 1,286 Other income (expense), net (OI&E) 80 123 Interest and debt expense 128 116 Income before income taxes 1,276 1,293 Provision for income taxes 97 188 Net income$ 1,179$ 1,105Diluted earnings per common share$ 1.28$ 1.20Average shares outstanding: Basic 910 910 Diluted 916 917Cash dividends declared per common share$ 1.36$ 1.30Supplemental Information (Quarterly, except as noted)Provision for income taxes is based on the following:Operating taxes (calculated using the estimated annual effective tax rate)$ 166$ 176 Discrete tax items (69) 12 Provision for income taxes (effective taxes)$ 97$ 188A 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$ 1,179$ 1,105 Income allocated to RSUs (6) (5) Income allocated to common stock for diluted EPS$ 1,173$ 1,100 TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIESConsolidated Balance SheetsMarch 31, (In millions, except par value)20252024 Assets Current assets: Cash and cash equivalents$ 2,763$ 2,483 Short-term investments 2,242 7,910 Accounts receivable, net of allowances of ($16) and ($20) 1,860 1,671 Raw materials 393 417 Work in process 2,370 2,129 Finished goods 1,924 1,537 Inventories 4,687 4,083 Prepaid expenses and other current assets 1,534 1,301 Total current assets 13,086 17,448 Property, plant and equipment at cost 16,036 13,739 Accumulated depreciation (4,225) (3,297) Property, plant and equipment 11,811 10,442 Goodwill 4,362 4,362 Deferred tax assets 1,030 821 Capitalized software licenses 263 231 Overfunded retirement plans 240 169 Other long-term assets 2,965 1,412 Total assets$ 33,757$ 34,885Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt$ —$ 1,349 Accounts payable 866 551 Accrued compensation 418 399 Income taxes payable 284 378 Accrued expenses and other liabilities 921 876 Total current liabilities 2,489 3,553 Long-term debt 12,848 12,840 Underfunded retirement plans 115 111 Deferred tax liabilities 56 55 Other long-term liabilities 1,843 1,343 Total liabilities 17,351 17,902 Stockholders' equity: Preferred stock, $25 par value. Shares authorized – 10; none issued — — Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741 1,741 1,741 Paid-in capital 4,058 3,439 Retained earnings 52,196 52,199 Treasury common stock at cost Shares: March 31, 2025 – 832; March 31, 2024 – 831 (41,442) (40,193) Accumulated other comprehensive income (loss), net of taxes (AOCI) (147) (203) Total stockholders' equity 16,406 16,983 Total liabilities and stockholders' equity$ 33,757$ 34,885 TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIESConsolidated Statements of Cash FlowsFor Three Months Ended March 31, (In millions)20252024 Cash flows from operating activities Net income$ 1,179$ 1,105 Adjustments to net income: Depreciation 424 346 Amortization of capitalized software 20 16 Stock compensation 116 106 Gains on sales of assets — (129) Deferred taxes (87) (71) Increase (decrease) from changes in: Accounts receivable (141) 116 Inventories (160) (84) Prepaid expenses and other current assets (7) (24) Accounts payable and accrued expenses (121) (77) Accrued compensation (427) (444) Income taxes payable 132 212 Changes in funded status of retirement plans (9) 17 Other (70) (72) Cash flows from operating activities 849 1,017Cash flows from investing activities Capital expenditures (1,123) (1,248) Proceeds from CHIPS Act incentives 260 — Proceeds from asset sales — 192 Purchases of short-term investments (647) (4,864) Proceeds from short-term investments 2,807 2,631 Other (44) (40) Cash flows from investing activities 1,253 (3,329)Cash flows from financing activities Proceeds from issuance of long-term debt — 2,980 Repayment of debt (750) — Dividends paid (1,238) (1,183) Stock repurchases (653) (3) Proceeds from common stock transactions 118 65 Other (16) (28) Cash flows from financing activities (2,539) 1,831Net change in cash and cash equivalents (437) (481) Cash and cash equivalents at beginning of period 3,200 2,964 Cash and cash equivalents at end of period$ 2,763$ 2,483Supplemental cash flow information Investment tax credit (ITC) used to reduce income taxes payable$ —$ — Proceeds from CHIPS Act incentives 260 — Total cash benefit related to the CHIPS Act$ 260$ — Segment results (In millions)Q1 2025Q1 2024Change Analog: Revenue$ 3,210$ 2,83613 % Operating profit$ 1,206$ 1,00820 % Embedded Processing: Revenue$ 647$ 652(1) % Operating profit$ 40$ 105(62) % Other: Revenue$ 212$ 17323 % Operating profit*$ 78$ 173(55) %* 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 ThreeMonthsEnded March 31, For 12 Months Ended March 31, (In millions)2025 20252024Change Cash flow from operations (GAAP)*$ 849 $ 6,150$ 6,277(2) % Capital expenditures (1,123)(4,695) (5,337) Proceeds from CHIPS Act incentives 260260 — Free cash flow (non-GAAP)$ (14) $ 1,715$ 94082 %Revenue$ 16,049$ 16,801Cash flow from operations as a percentage of revenue (GAAP) 38.3 % 37.4 % Free cash flow as a percentage of revenue (non-GAAP) 10.7 % 5.6 %* Includes a cash benefit of $588 million from the CHIPS Act ITC used to reduce income taxes payable for the twelve months ended March 31, 2025. 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 TXN-G View original content to download multimedia: SOURCE Texas Instruments Incorporated Sign in to access your portfolio
