Technology · NASDAQ: TXN
Texas Instruments: how the business works
Texas Instruments makes analog and embedded processing chips for factory, car, phone and data center equipment, with revenue of $17.7 billion in FY2025.
By Hardik Bhandare · Checked against filings: . Editorial policy. Corrections
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Texas Instruments Incorporated · Dallas, Texas · Founded 1930
Updated for Q3 FY2026 · checked
- Revenue, FY2025
- $17.7B
- Net income, FY2025
- $5.0B
- Revenue, Q3 FY2026 (up 28% from a year earlier)
- $6.06B
- Customers, FY2025
- Over 100,000
- Employees, Dec 31, 2025
- About 33,000
The short version
Texas Instruments in 5 points
1 · What it sells
Texas Instruments makes chips that manage power and turn real-world signals into data: Analog chips were $14.0 billion of FY2025 revenue of $17.7 billion, and Embedded Processing chips that control machines, cars and devices were $2.7 billion.
2 · Who pays it
By TI's estimate, industrial customers were 33% of FY2025 revenue, automotive 33%, personal electronics 21%, data center 9%, communications equipment 3% and calculators 1%.
3 · What it keeps from $100
Of every $100 that came in during FY2025, TI kept $27.9 as net income, while operating profit, before other income, interest and tax, was $34.1 per $100 of revenue, and other income added $230 million.
4 · Where the operating profit comes from
Analog earned $5.4 billion of TI's FY2025 operating profit of $6.0 billion, Embedded Processing $304 million and other products $307 million.
5 · The one thing to watch
TI's gross margin fell from 68.8% in FY2022 to 57.0% in FY2025 while yearly depreciation rose from $925 million to $1.92 billion, and it was 64.2% in Q3 FY2026.
Sources: From Texas Instruments' FY2025 and FY2024 10-Ks and Q3 FY2026 earnings release · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of Texas Instruments' money go?
Texas Instruments · FY2025
Receipt for every $100
| Cost of revenue | $42.4 |
|---|---|
| Research and development | $11.6 |
| Selling, general and administrative | $10.4 |
| Restructuring charges | $0.7 |
| Interest on debt | $3.0 |
| Income tax | $4.0 |
| Kept as net income | $27.9 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (revenue of $17,682 million plus $230 million of other income): each line = line ÷ $17,912 million × 100.
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02The business in one line
What does Texas Instruments do?
Makers of factory equipment, cars, phones and data center gear pay Texas Instruments for chips it mostly makes in its own factories; in FY2025, making them took $42.4 of every $100 that came in, and $27.9 was left as net income.
- Analog chips, which manage power and turn real-world signals such as sound or temperature into data, were 79.2% of FY2025 revenue. Embedded Processing was 15.3% and other products 5.5%.
- Revenue was $17.7 billion in FY2025, below FY2022's $20.0 billion. In Q3 FY2026 it was $6.06 billion, 28% more than a year earlier.
03Who pays it
Who pays Texas Instruments?
Industrial
33%
of revenue
Factory automation, aerospace and defense, energy infrastructure, building automation, medical, test and measurement, appliances and robotics.
Automotive
33%
of revenue
Infotainment and dashboards, driver assistance systems, body electronics and lighting, hybrid and electric powertrains, chassis and safety.
Personal electronics
21%
of revenue
Phones, PCs, portable electronics, home entertainment, printers, TVs, tablets, wearables, gaming and data storage.
Data center
9%
of revenue
Data center computing, networking, and rack power and cooling.
Communications equipment
3%
of revenue
Wireless infrastructure and wired networking.
Calculators
1%
of revenue
TI's own calculators.
- Industrial33%
- Automotive33%
- Personal electronics21%
- Data center9%
- Communications equipment3%
- Calculators1%
Customer concentration
Shares are TI's estimates for FY2025, after it realigned its markets in 2025, so they do not compare with older 10-Ks. One end customer, not named, was 12% of revenue in FY2025 and FY2024, mainly in Analog; none reached 10% in FY2023. About half of revenue came from customers outside TI's largest 50.
- Largest customer
- 12%
04Why it makes money
Why does Texas Instruments make money?
TI owns most of its factories, so its profit per dollar of sales rises and falls with how full they run.
TI's 10-K says much of its cost is fixed because it owns its manufacturing, so margins fall when factory loadings drop. Gross margin, what is left after making the chips, fell from 68.8% in FY2022 to 57.0% in FY2025, which the 10-K links partly to costs of new capacity. In Q3 FY2026, with revenue up 28%, it was 64.2%.
Gross margin per $100 of revenue
$68.8$57.0
FY2022 to FY2025
- TI builds and runs its own wafer factories, now mostly 300mm
- TI says a chip on a 300mm wafer costs about 40% less unpackaged than on 200mm
- Factory costs are largely fixed, so fuller factories spread them over more chips
- More than 80,000 products sold to over 100,000 customers keep the factories loaded
- Cash from operations pays for new factories and dividends
↺ Step 5 feeds back into step 1.
05Business segments · FY2025
Which businesses make up Texas Instruments?
Analog
79%Power and signal chain chips. Revenue rose 15.2% in FY2025 to $14.0 billion, and operating profit was $5.4 billion, a 38.6% margin.
Revenue $14.0B · Operating profit $5.4B
Embedded Processing
15%Microcontrollers, processors, wireless connectivity and radar chips. Revenue rose 6% in FY2025, and operating profit fell to $304 million, an 11.3% margin. TI's 10-K says the Lehi factory, early in its ramp, weighs on this segment's profit.
Revenue $2.7B · Operating profit $304M
Other
6%DLP products, calculators and custom chips, plus some corporate, acquisition and restructuring items. Operating profit was $307 million.
Revenue $979M · Operating profit $307M
How the mix changed
- Analog
- Embedded Processing
- Other
Revenue by segment, FY2021 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Texas Instruments done?
Revenue
$17.7BFY2025
Revenue fell from $20.0 billion in FY2022 to $15.6 billion in FY2024, then rose to $17.7 billion in FY2025; Q3 FY2026 revenue of $6.06 billion was 28% above a year earlier.
US$
See the numbers
Net profit
$5.0BFY2025
Net income fell from $8.7 billion in FY2022 to $4.8 billion in FY2024 and was $5.0 billion in FY2025; Q3 FY2026 net income of $2.43 billion was 78% above a year earlier.
US$
See the numbers
Profit kept per $100 of revenue
$28.3FY2025
Net income per $100 of revenue fell from $43.7 in FY2022 to $28.3 in FY2025, when operating profit per $100 was $34.1, then reached $40.0 in Q3 FY2026.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$2.6BFY2025
Cash from operations minus capital spending fell from $6.3 billion in FY2021 to $1.3 billion in FY2023, when capital spending was $5.1 billion, and was $2.6 billion in FY2025, a year in which operating cash included a $335 million CHIPS Act tax credit.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Dec 31 (fiscal year = calendar year)). Net profit is the share belonging to the company's owners.
Download Texas Instruments's yearly and quarterly numbers (CSV, with source ids)
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
Sources (13)
- Form 10-K, fiscal 2022 (year ended Dec 31, 2022)
- Form 10-K, fiscal 2024 (year ended Dec 31, 2024)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Q3 2024 earnings release (8-K Item 2.02, Exhibit 99)
- Q4 and full-year 2024 earnings release (8-K Item 2.02, Exhibit 99)
- Q1 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Q2 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Q3 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Q4 and full-year 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Q1 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q2 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
07Who runs it
Who runs Texas Instruments, and did they deliver?
Haviv Ilan
Chairman, President and Chief Executive Officer · since 2023
President and CEO since 2023, director since 2021 and chairman since January 2026, after Rich Templeton retired. 2025 total pay was $22.7 million, about 272 times the median employee's $83,617.
Julie Knecht
Senior Vice President and Chief Financial Officer (Chief Accounting Officer) · since 2026
Took over on Aug 1, 2026 from Rafael Lizardi, who retired after 25 years. She has worked at TI for more than 25 years and was Chief Accounting Officer from 2021.
What they said, and what happened
4 delivered · 3 too early to tell
Said on Oct 21, 2025
TI guided Q4 FY2025 revenue of $4.22 billion to $4.58 billion and diluted EPS of $1.13 to $1.39.
DeliveredWhat happened
Reported revenue of $4.42 billion and EPS of $1.27, both within the ranges.
Said on Jan 27, 2026
TI guided Q1 FY2026 revenue of $4.32 billion to $4.68 billion and diluted EPS of $1.22 to $1.48.
DeliveredWhat happened
Reported revenue of $4.83 billion and EPS of $1.68, both above the ranges.
Said on Apr 22, 2026
TI guided Q2 FY2026 revenue of $5.00 billion to $5.40 billion and diluted EPS of $1.77 to $2.05.
DeliveredWhat happened
Reported revenue of $5.46 billion and EPS of $2.14, both above the ranges.
Said on Jul 22, 2026
TI guided Q3 FY2026 revenue of $5.65 billion to $6.15 billion and diluted EPS of $2.23 to $2.57.
DeliveredWhat happened
Reported revenue of $6.06 billion, within the range, and EPS of $2.62, above it.
Said on Feb 6, 2026
TI said it expects about $2 billion to $3 billion of capital expenditures in 2026.
Too early to tellWhat happened
Capital expenditures were $1.65 billion in the first nine months of 2026.
Said on Feb 4, 2026
TI said it expects to close the Silicon Labs purchase in the first half of 2027.
Too early to tellWhat happened
The Q3 FY2026 10-Q still expects closing in the first half of 2027.
Said on Oct 21, 2026
TI guided Q4 FY2026 revenue of $5.80 billion to $6.30 billion and diluted EPS of $2.45 to $2.79.
Too early to tellWhat happened
Q4 FY2026 results are not out yet.
Sources (11)
- 8-K filed Oct 16, 2025: Haviv Ilan named chairman, Rich Templeton to retire (Item 5.02, Exhibit 99)
- 2026 proxy statement (DEF 14A)
- 8-K filed Jun 2, 2026: Julie Knecht appointed CFO effective Aug 1, 2026 (Item 5.02)
- Q3 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Q4 and full-year 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Q1 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q2 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1)
08What could go wrong
What could go wrong for Texas Instruments?
- Demand
Profit swings with demand and factory loadings
TI's 10-K says much of its cost is fixed because it owns its factories, so margins fall when loadings drop. Revenue fell from $20.0 billion in FY2022 to $15.6 billion in FY2024, and operating margin fell from 50.6% to 34.9%.
Watch Gross margin and days of inventory in each earnings release and 10-Q.
- Regulation
China
Products shipped into China were about 50% of FY2025 revenue, and customers headquartered in China 21%. TI's 10-K says China's promotion of its own chip industry could add competition, and names trade rules and regulatory scrutiny of the industry as risks.
Watch Revenue from China-headquartered customers in each 10-Q and 10-K; trade rule changes.
- Concentration
One large customer
One end customer, not named, was 12% of revenue in FY2025 and FY2024, mainly in Analog. No customer reached 10% in FY2023.
Watch The major customer note in each 10-K.
- Execution
Silicon Labs purchase
TI agreed to pay $231 a share in cash, an enterprise value of about $7.5 billion. Closing is subject to regulatory approvals and other customary closing conditions. TI has an undrawn $5 billion term loan for it, and its new $2.0 billion of notes must be redeemed at 101% if the deal does not close.
Watch Regulatory approvals, the closing date and how much of the term loan is drawn.
- Debt
Dividends above free cash flow, with more debt
Dividends exceeded cash from operations minus capital spending in each of FY2023 to FY2025, and debt rose from $7.7 billion at end-2021 to $14.0 billion at end-2025. In the four quarters to Sep 30, 2026, cash from operations minus capital spending was $7.3 billion, against $5.2 billion of dividends (Cityfort calculation from the Q3 FY2026 earnings release).
Watch Cash from operations, capital spending and dividends paid each quarter; net debt.
- Competition
Competition, including from Asia
TI's 10-K says it faces intense technological and pricing competition that it expects to keep increasing, including from emerging companies, particularly in Asia. It names no rivals.
Watch Analog revenue and gross margin each quarter.
Sources (7)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Form 10-K, fiscal 2024 (year ended Dec 31, 2024)
- 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings)
- Form 10-K, fiscal 2022 (year ended Dec 31, 2022)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
09Both sides
What do supporters and critics point to?
What supporters point to
- Q3 FY2026 revenue rose 28% from a year earlier to $6.06 billion, and gross margin was 64.2%, up from 57.4%.
- Revenue came in within or above TI's guided range in each of the eight quarters from Q4 FY2024 to Q3 FY2026.
- Capital spending was $5.1 billion in FY2023, $4.55 billion in FY2025 and $1.65 billion in the first nine months of 2026, while cash from operations was $9.9 billion in the four quarters to Sep 30, 2026.
- TI has over 100,000 customers and more than 80,000 products, and about half of FY2025 revenue came from customers outside its largest 50.
- TI raised its quarterly dividend to $1.52 in September 2026, which it says marks 23 consecutive years of increases.
What critics point to
- Gross margin fell from 68.8% in FY2022 to 57.0% in FY2025, while yearly depreciation rose from $925 million to $1.92 billion.
- Dividends of $5.0 billion equaled all of FY2025 net income and exceeded cash from operations minus capital spending in FY2023, FY2024 and FY2025.
- TI went from net cash of $2.0 billion at end-2021 to net debt of $9.2 billion at end-2025, and $2.0 billion of new notes settle in November 2026.
- Products shipped into China were about 50% of FY2025 revenue, and one unnamed customer was 12%.
- Embedded Processing's operating margin fell from 38.4% in FY2022 to 11.3% in FY2025.
10What to watch next
What should you watch next at Texas Instruments?
Next event
Q4 FY2026 results
Date not announced yet.
Q4 FY2026 against TI's range
TI said on Oct 21, 2026 that it expects Q4 revenue of $5.80 billion to $6.30 billion and diluted EPS of $2.45 to $2.79.
Gross margin and capital spending
Gross margin was 64.2% in Q3 FY2026. Capital spending was $1.65 billion in the first nine months of 2026, against TI's 2026 range of about $2 billion to $3 billion.
Silicon Labs approvals
TI expects to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions; the 10-Q reports the deal's status each quarter.
11Key dates
What are the key dates for Texas Instruments?
| Event | Date | Source |
|---|---|---|
| Settlement of $2.0 billion of new notesFour $500 million notes due 2028, 2031, 2033 and 2036, priced Oct 26, 2026. TI must redeem them at 101% if the Silicon Labs purchase does not close. | Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings) | |
| Higher quarterly dividend of $1.52 payableTI said on Sep 17, 2026 that it is payable to stockholders of record on Oct 30, 2026, subject to the board formally declaring it in October. | 8-K filed Sep 17, 2026: TI increases dividend 7% to $1.52 per share (Exhibit 99) | |
| Expected closing of the Silicon Labs purchaseTI expects it in the first half of 2027, subject to regulatory approvals and other customary closing conditions. | Not yet stated | 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1); Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026) |
Sources (4)
- Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings)
- 8-K filed Sep 17, 2026: TI increases dividend 7% to $1.52 per share (Exhibit 99)
- 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
12Key facts
Key facts about Texas Instruments
- What does Texas Instruments do?
- Texas Instruments (TI) designs and makes analog and embedded processing chips that go into industrial equipment, cars, phones, PCs and data centers. TI sold more than 80,000 products to over 100,000 customers and had revenue of $17.7 billion in FY2025 (year ended Dec 31, 2025).
- How does Texas Instruments make money?
- Texas Instruments makes money by selling chips it mostly makes in its own factories. In FY2025, Analog chips brought in $14.0 billion (79.2% of revenue), Embedded Processing $2.7 billion (15.3%) and other products, including calculators, $979 million (5.5%).
- What is Texas Instruments' business model?
- Texas Instruments runs its own wafer factories, increasingly on 300mm wafers, and sells a very wide range of chips. TI says a chip on a 300mm wafer costs about 40% less unpackaged than on a 200mm wafer. More than 80% of TI's FY2025 revenue came from direct sales, including its website, and under 20% through distributors.
- Is Texas Instruments profitable?
- Yes. Texas Instruments had net income of $5.0 billion and operating profit of $6.0 billion in FY2025, on revenue of $17.7 billion. Net income was $2.43 billion in Q3 FY2026 (quarter ended Sep 30, 2026), up 78% from $1.36 billion a year earlier.
- What is Texas Instruments' revenue by segment?
- In FY2025, Texas Instruments' Analog segment had revenue of $14.0 billion and operating profit of $5.4 billion. Embedded Processing had revenue of $2.7 billion and operating profit of $304 million. Other products had revenue of $979 million and operating profit of $307 million.
- How much revenue does Texas Instruments make from analog chips?
- Analog chips brought in $14.0 billion, 79.2% of Texas Instruments' FY2025 revenue, up from $12.2 billion in FY2024. In Q3 FY2026 Analog revenue was $4.91 billion, up 32% from a year earlier. Analog includes power chips and signal chain chips.
- How much revenue does Texas Instruments make from embedded processing?
- Embedded Processing (microcontrollers, processors, wireless connectivity and radar chips) brought in $2.7 billion, 15.3% of Texas Instruments' FY2025 revenue, with an operating margin of 11.3%. In Q3 FY2026 Embedded Processing revenue was $858 million, up 21% from a year earlier.
- Who are Texas Instruments' customers?
- Texas Instruments sells to over 100,000 customers. By TI's estimate, industrial customers were 33% of FY2025 revenue, automotive 33%, personal electronics 21%, data center 9% and communications equipment 3%. One end customer, not named, was 12% of TI's revenue in FY2025 and FY2024.
- Who owns Texas Instruments?
- Texas Instruments has one class of common stock with one vote per share, and 913.8 million shares were outstanding on Oct 14, 2026. Vanguard Capital Management reported 7.49% on Mar 31, 2026. TI's 2026 proxy lists BlackRock at 8.5%, based on Dec 31, 2023 data, and directors and executive officers together at less than 1%.
- What were Texas Instruments' latest quarterly results?
- Texas Instruments' revenue was $6.06 billion in Q3 FY2026 (quarter ended Sep 30, 2026), up 28% from $4.74 billion in Q3 FY2025. Net income was $2.43 billion and diluted EPS $2.62, up from $1.48. Gross margin was 64.2%, up from 57.4%.
Terms on this page
- Capital expenditures (capex)
- Customer concentration
- Debt-to-equity
- Earnings per share (EPS)
- EBITDA
- Free cash flow
- Market cap
- Net debt
- Net margin
- P/E ratio
Each explains the term in plain English, with the same number from other companies on Cityfort.
Go deeper
More detail from the same filings. Open any section.
13What it sells
13What it sells
What does Texas Instruments sell?
Analog ($14.0B in FY2025)
Power chips convert, store and measure electricity in anything plugged in or running on a battery. Signal chain chips turn sound, temperature, pressure or light into data that other chips can process.
Embedded Processing ($2.7B)
Microcontrollers and processors, small computers on a chip that control machines, cars and devices, plus wireless connectivity and radar chips.
Other ($979M)
DLP products, calculators (about 1% of revenue) and custom chips (ASICs).
Think of it like this
Analog chips work like the senses and the power supply of a device: they read the outside world and feed it electricity, while processors do the thinking.
What it does
- Does: Designs its chips and makes most of them in its own wafer factories and assembly and test sites
- Does: Sells more than 80% of its revenue directly, including through its website TI.com
- Does: Sells calculators, about 1% of FY2025 revenue
What it does not do
- Does not: Does not rely mainly on distributors: they handled under 20% of FY2025 revenue
- Does not: Does not depend on a few new products: its 10-K says new products rarely move revenue much because it sells so many
- Does not: Does not name its largest customer, which was 12% of revenue in FY2025
14How the money flows
14How the money flows · FY2025
How does money flow through Texas Instruments?
Money in
- Analog$14.0B
- Embedded Processing$2.7B
- Other (DLP, calculators, custom chips)$979M
- Other income, net (incl. interest earned)$230M
The company
Texas Instruments
$17.9B came in
Money out
- Cost of revenue$7.6B
- Research and development$2.1B
- Selling, general and administrative$1.9B
- Restructuring charges (incl. planned closing of the last 150mm factories)$117M
- Interest on debt$543M
- Income tax$709M
- Net income$5.0B
- Customers paid TI $17.7 billion in FY2025, $14.0 billion of it for Analog chips.
- Making the chips cost $7.6 billion.
- Research took $2.1 billion, selling and administration $1.9 billion and restructuring $117 million, leaving $6.0 billion of operating profit.
- Other income added $230 million; interest on debt took $543 million and tax $709 million.
- That left $5.0 billion of net income, and TI paid $5.0 billion of dividends that year.
15What it needs to run
15What it needs to run
What does Texas Instruments need to run?
Its own factories
Property, plant and equipment was $12.3 billion at Dec 31, 2025, $8.8 billion of it in the US. The newest 300mm factories are in Richardson and Sherman, Texas, and Lehi, Utah.
Capital spending
TI spent $19.7 billion on capital expenditures from FY2021 to FY2025 (Cityfort calculation from the FY2025 and FY2022 10-Ks), peaking at $5.1 billion in FY2023. Its 10-K says it is near the end of a six-year cycle of elevated spending.
Inventory built ahead
Inventory was $4.8 billion at Dec 31, 2025, or 222 days. TI's 10-K says it builds ahead products sold to many customers that are unlikely to become obsolete.
People
About 33,000 employees at Dec 31, 2025, about 90% of them in research, sales or manufacturing.
Government incentives
US CHIPS Act direct funding of up to $1.6 billion for three 300mm factories, paid on milestones; TI had received $630 million by Sep 30, 2026. The Act's investment tax credit was worth $335 million of cash in FY2025.
16Where it sells
16Where it sells · FY2025, by where each end customer has its headquarters
Where does Texas Instruments sell?
- United States38%
- China21%
- Europe, Middle East and Africa21%
- Rest of Asia11%
- Japan7%
- Rest of world2%
17Where growth could come from
17Where growth could come from
Where could Texas Instruments' growth come from?
TI said on Oct 21, 2026 that it expects Q4 FY2026 revenue of $5.80 billion to $6.30 billion and diluted EPS of $2.45 to $2.79. In its FY2025 10-K (Feb 6, 2026) it said it expects to spend about $2 billion to $3 billion on capital expenditures in 2026.
Analog demand
WorkingAnalog +32% in Q3 FY2026
Analog revenue was $4.91 billion in Q3 FY2026, up from $3.73 billion a year earlier, and operating profit was $2.51 billion. The Q3 FY2026 10-Q says growth in chip content is continuing alongside a cyclical recovery.
Status: Working, on track against what the company said.
Embedded Processing
WorkingOperating margin 26.5% in Q3 FY2026 (Q3 FY2026 10-Q)
Revenue rose 21% to $858 million in Q3 FY2026, and operating profit rose 110% to $227 million. The segment's operating margin was 38.4% in FY2022. TI's Q3 FY2026 10-Q (Oct 23, 2026) says: "As LFAB ramps, we expect Embedded to carry manufacturing costs that disproportionately benefit Embedded Processing operating profit as compared to Analog." LFAB is the Lehi factory.
Status: Working, on track against what the company said.
End of the factory build-out
WorkingCapex $1.65B in 9 months of 2026
TI said in February 2026 that it expects about $2 billion to $3 billion of capital spending in 2026, down from $4.55 billion in FY2025. The Q3 FY2026 10-Q says Lehi is continuing to ramp production.
Status: Working, on track against what the company said.
Data center
New9% of FY2025 revenue
TI made data center its own market in 2025. Its Q3 FY2026 release cites continued broad growth in industrial, automotive and data center.
Status: New, recently announced.
Silicon Labs purchase
Early$231 a share in cash, an enterprise value of about $7.5 billion
TI agreed on Feb 4, 2026 to buy Silicon Labs, which makes embedded wireless connectivity chips; it expects to close in the first half of 2027. TI said it expects about $450 million a year of manufacturing and operational benefits within three years of closing.
Status: Early, too early to judge.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
Sources (7)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- Form 10-K, fiscal 2024 (year ended Dec 31, 2024)
- Form 10-K, fiscal 2022 (year ended Dec 31, 2022)
- 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1)
- Silicon Labs acquisition investor presentation (8-K filed Feb 4, 2026, Exhibit 99.2)
18The company's own measures (non-GAAP)
18The company's own measures · FY2025 and the four quarters to Sep 30, 2026
What do Texas Instruments' own measures show?
Official (GAAP): Cash flow from operations, FY2025
$7.2B
Company's own measure: Free cash flow (TI's definition), FY2025
$2.9B
TI subtracts capital spending and adds cash proceeds from CHIPS Act incentives ($335 million in FY2025). The free cash flowCash from operations minus spending on buildings and equipment. Learn more in "The numbers" subtracts capital spending only: $2,603 million.
Official (GAAP): Cash flow from operations, four quarters to Sep 30, 2026
$9.9B
Company's own measure: Free cash flow (TI's definition), four quarters to Sep 30, 2026
$8.4B
Same definition. TI's release says cash from operations in this period includes a $469 million CHIPS Act tax credit benefit.
Official (GAAP): Cash flow from operations as % of revenue
47.7%
Company's own measure: Free cash flow as % of revenue (TI's definition), four quarters to Sep 30, 2026
40.6%
On revenue of $20,766 million for the four quarters, as stated in TI's Q3 FY2026 release.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
19Financial strength and debt
19Financial strength · Sep 30, 2026
How much debt does Texas Instruments have?
- Total debt$13.6B
- Cash and investments$8.1B
- Net debt (debt minus cash)$5.4B
- Net worth (shareholders' money)$19.2B
- Debt to equity
- 0.71×
- $ of debt for every $1 of shareholders' money
- Net debt is a Cityfort calculation from the Q3 FY2026 10-Q: debt of $13,555 million minus cash and short-term investments of $8,142 million. On the same basis, TI had net cash of $1,998 million at Dec 31, 2021 and net debt of $9,167 million at Dec 31, 2025 (Cityfort calculation from the FY2025 and FY2022 10-Ks).
- $2.0 billion of new notes priced on Oct 26, 2026 settle on Nov 9, 2026, after this balance sheet. TI must redeem them at 101% if the Silicon Labs purchase does not close.
- A $5 billion 364-day delayed-draw term loan, entered in June 2026 for the Silicon Labs purchase, was undrawn at Sep 30, 2026.
- Inventory was $4,672 million at Sep 30, 2026, or 194 days, down from 222 days at Dec 31, 2025.
Sources (5)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Form 10-K, fiscal 2022 (year ended Dec 31, 2022)
- Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings)
20Who owns it
20Who owns it · ownership as of Dec 31, 2025
Who owns Texas Instruments?
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Insider trades · Form 4 data as of Nov 6, 2026
What did Texas Instruments' insiders report trading?
Texas Instruments' insiders made 68 Form 4A filing an insider must make within two business days of buying or selling the company's shares. Learn more filings in the 12 months to Nov 6, 2026.
They reported no purchases and 52 sales (471,178 shares) in the open market or privately (codes P and S).
None of the sales were on forms with the Rule 10b5-1 plan box checked.
The same filings report 82 other share transactions (M: 43, A: 25, F: 12, G: 2).
They also report 74 transactions in options, stock units or other derivatives.
Insiders are a company's officers, directors and owners of more than 10% of a class of its shares. Most changes in their holdings must be reported to the SEC on a Form 4 within two business days. Source: SEC Form 4 filings on EDGAR.
- P
- a purchase in the open market or privately
- S
- a sale in the open market or privately
- A
- a grant, award or other acquisition from the company under Rule 16b-3
- F
- shares withheld or handed over to pay an exercise price or tax when an award is received, exercised or vests
- M
- exercise or conversion of an option or other derivative, exempt under Rule 16b-3
- G
- a bona fide gift
Code meanings: General Instruction 8 of Form 4 (SEC).
The latest 25 of 134 transactions
Shares: A = acquired, D = disposed of. A price the filing gives only in a footnote shows as “See filing”. The 10b5-1 box is checked when at least one trade on the form was made under a Rule 10b5-1 plan. A Form 4/A replaces the form it amends. See all of Texas Instruments' Form 4 filings on EDGAR.
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes · Rule 10b5-1 trading plans: how insiders pre-schedule their trades
21What it does with profit
21What it does with profit
What does Texas Instruments do with its profit?
Dividend per share
$5.50FY2025
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · Dec 31, 2024
Bought 4.7 million shares for $929 million during FY2024.
$929M
Buyback · Dec 31, 2025
Bought 8.5 million shares for $1.48 billion during FY2025.
$1.5B
Buyback · Sep 30, 2026
$18.56 billion remained under TI's buyback authorizations at Sep 30, 2026; TI bought back $233 million of shares in the first nine months of 2026.
$18.6B
Money raised · Jun 30, 2025
Issued long-term debt with proceeds of $1.2 billion in Q2 FY2025.
$1.2B
Money raised · Oct 26, 2026
Priced $2.0 billion of notes: $500 million each at 5.000% due 2028, 5.350% due 2031, 5.500% due 2033 and 5.750% due 2036, settling Nov 9, 2026.
$2.0B
Sources (9)
- Form 10-K, fiscal 2022 (year ended Dec 31, 2022)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- 8-K filed Sep 18, 2025: TI increases dividend 4% to $1.42 per share (Exhibit 99)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q2 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q1 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q2 2025 earnings release (8-K Item 2.02, Exhibit 99)
- Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings)
22Governance signals
22Governance signals
What do Texas Instruments' governance filings show?
- Auditor
- Ernst & Young LLP, since 1952
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- TI's 2026 proxy describes a written policy for approving related person transactions and reports none.
- Credit rating
- Moody's and S&P (as stated in TI's Oct 26, 2026 pricing term sheet for its notes) Aa3 (Moody's) / A+ (S&P) (Stable (both, as stated in the term sheet)), Oct 26, 2026
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
other
Pending Silicon Labs purchase
TI agreed on Feb 4, 2026 to buy Silicon Labs for $231 a share in cash, an enterprise value of about $7.5 billion. Closing is subject to regulatory approvals and other customary closing conditions; TI expects it in the first half of 2027.
other
Insiders may not use TI shares as loan collateral
The 2026 proxy says TI policy bars directors and executive officers from using TI stock as loan collateral and that none has done so; hedging TI stock is also prohibited.
disclosure
Largest customer not named; end markets yearly only
TI does not name the end customer that was 12% of revenue in FY2025 and FY2024. It gives its end-market split once a year in the 10-K, not each quarter.
Sources (6)
- 2026 proxy statement (DEF 14A)
- Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings)
- 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1)
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
23What the market paid
23What the market paid · price as of Nov 5, 2026
What did the market pay for Texas Instruments on Nov 5, 2026?
Price as of Nov 5, 2026 (shown for education; prices change daily).
Price as of Nov 5, 2026: Texas Instruments closed at $278.15 on Nasdaq, 10.7% below its Nov 4 close of $311.49; no TI filing that day gives a reason. Times 913.8 million shares (Oct 14, 2026), that is a market value of about $254.2 billion (Cityfort calculation from the Nov 5, 2026 Nasdaq closing price and the Q3 FY2026 10-Q cover). P/E is price ÷ earnings per share: 36.1 on diluted EPS of $7.71 for the four quarters to Sep 30, 2026 (Cityfort calculation from the Q4 FY2025 to Q3 FY2026 earnings releases). P/B is market value ÷ stockholders' equity of $19.2 billion at Sep 30, 2026: 13.2. EV/EBITDA adds net debt of $5.4 billion to market value, then divides by EBITDA of $10.7 billion for the same four quarters: 24.2. The $1.52 quarterly dividend is $6.08 a year, or 2.19% of that price.
- Share price
- $278.15
- Market value (market cap)
- $254.2B
- P/E
- 36.1×
- P/B
- 13.2×
- EV/EBITDA
- 24.2×
More price-based ratios · as of Nov 5, 2026
Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.
Price to sales (P/S)
12.2×
$254.2B market value ÷ $20.8B revenue (four quarters to Sep 30, 2026) = 12.2×
Cityfort calculation from the Nov 5, 2026 closing price and the Q4 FY2025 to Q3 FY2026 10-Qs and earnings releases. Source: TXN historical prices (Nasdaq), close Nov 5, 2026; Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026); Q3 2026 earnings release (8-K Item 2.02, Exhibit 99) and 4 more
How price ratios workDividend yield
1.98%
$5.50 dividends per share (FY2025) ÷ $278.15 share price = 1.98%
Cityfort calculation from the FY2025 10-K and the Nov 5, 2026 closing price. Source: TXN historical prices (Nasdaq), close Nov 5, 2026; Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026); Q3 2026 earnings release (8-K Item 2.02, Exhibit 99) and 6 more
What dividend yield meansFree cash flow yield
1.0%
$2.6B free cash flow (FY2025) ÷ $254.2B market value = 1.0%
Cityfort calculation from the FY2025 10-K and the Nov 5, 2026 closing price. Source: TXN historical prices (Nasdaq), close Nov 5, 2026; Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026); Q3 2026 earnings release (8-K Item 2.02, Exhibit 99) and 5 more
What free cash flow means
Shares used for the market value: 913.8 million ($278.15 × 913.8 million shares ≈ $254.2B). Source: Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026); 2026 proxy statement (DEF 14A)
Source: TXN historical prices (Nasdaq), close Nov 5, 2026; Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026); Q3 2026 earnings release (8-K Item 2.02, Exhibit 99) and 4 more
Sources (10)
- TXN historical prices (Nasdaq), close Nov 5, 2026
- Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026)
- Q3 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q2 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q1 2026 earnings release (8-K Item 2.02, Exhibit 99)
- Q4 and full-year 2025 earnings release (8-K Item 2.02, Exhibit 99)
- 8-K filed Sep 17, 2026: TI increases dividend 7% to $1.52 per share (Exhibit 99)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- 8-K filed Sep 18, 2025: TI increases dividend 4% to $1.42 per share (Exhibit 99)
- 2026 proxy statement (DEF 14A)
24How it got here
24How it got here
How did Texas Instruments get here?
1930
Milestone
Operations begin
TI's operations began in 1930. It is incorporated in Delaware and based in Dallas, Texas.
2021
Business-model change
Bought a 300mm factory in Lehi, Utah
TI bought the Lehi factory in 2021, part of a move to 300mm wafers; production began there in December 2022.
2022
Milestone
Revenue reaches $20.0 billion
FY2022 revenue was $20.0 billion and net income $8.7 billion, the highest of the five years on this page.
2023
Milestone
Haviv Ilan becomes CEO
Haviv Ilan, a director since 2021 and earlier chief operating officer, became president and CEO in 2023.
2024
Crisis
Revenue falls to $15.6 billion
FY2024 revenue was 21.9% below FY2022, and net income fell to $4.8 billion, while capital spending was $4.8 billion.
2025
Business-model change
Last 150mm factories to close
TI took $117 million of restructuring charges in FY2025, including for the planned closing of its last two 150mm factories. Rich Templeton retired as chairman at the end of 2025 after 45 years.
2026
Business-model change
Agreement to buy Silicon Labs
On Feb 4, 2026 TI agreed to buy Silicon Labs for $231 a share in cash, an enterprise value of about $7.5 billion; closing is expected in the first half of 2027.
2026
Milestone
New CFO and a 23rd dividend raise
Julie Knecht became CFO on Aug 1, 2026. On Sep 17, 2026 TI raised its quarterly dividend 7% to $1.52.
Sources (7)
- Form 10-K, fiscal 2025 (year ended Dec 31, 2025)
- Form 10-K, fiscal 2022 (year ended Dec 31, 2022)
- Form 10-K, fiscal 2024 (year ended Dec 31, 2024)
- 8-K filed Oct 16, 2025: Haviv Ilan named chairman, Rich Templeton to retire (Item 5.02, Exhibit 99)
- 8-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1)
- 8-K filed Jun 2, 2026: Julie Knecht appointed CFO effective Aug 1, 2026 (Item 5.02)
- 8-K filed Sep 17, 2026: TI increases dividend 7% to $1.52 per share (Exhibit 99)
25Sources and changes
Where every number on this page comes from
Sources (25 documents)
- S1Form 10-K, fiscal 2025 (year ended Dec 31, 2025) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 6, 2026
- S2Form 10-K, fiscal 2024 (year ended Dec 31, 2024) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 14, 2025
- S3Form 10-K, fiscal 2022 (year ended Dec 31, 2022) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 3, 2023
- S4Form 10-Q, third quarter 2026 (quarter ended Sep 30, 2026) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Oct 23, 2026
- S5Q3 2026 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2026
- S6Q2 2026 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jul 22, 2026
- S7Q1 2026 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Apr 22, 2026
- S8Q4 and full-year 2025 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jan 27, 2026
- S9Q3 2025 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2025
- S10Q2 2025 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jul 22, 2025
- S11Q1 2025 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Apr 23, 2025
- S12Q4 and full-year 2024 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jan 23, 2025
- S13Q3 2024 earnings release (8-K Item 2.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Oct 22, 2024
- S142026 proxy statement (DEF 14A) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Mar 4, 2026
- S15Schedule 13G by Vanguard Capital Management (7.49%, as of Mar 31, 2026) · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S16Schedule 13G/A by The Vanguard Group (0 shares, event Mar 13, 2026) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S178-K filed Feb 4, 2026: joint press release, Texas Instruments to acquire Silicon Labs (Exhibit 99.1) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
- S18Silicon Labs acquisition investor presentation (8-K filed Feb 4, 2026, Exhibit 99.2) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
- S19Free writing prospectus: pricing term sheet for 2028, 2031, 2033 and 2036 notes (with ratings) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Oct 26, 2026
- S208-K filed Sep 17, 2026: TI increases dividend 7% to $1.52 per share (Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Sep 17, 2026
- S218-K filed Sep 18, 2025: TI increases dividend 4% to $1.42 per share (Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Sep 18, 2025
- S228-K filed Oct 16, 2025: Haviv Ilan named chairman, Rich Templeton to retire (Item 5.02, Exhibit 99) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Oct 16, 2025
- S248-K filed Jun 2, 2026: Julie Knecht appointed CFO effective Aug 1, 2026 (Item 5.02) · Texas Instruments Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jun 2, 2026
- S25TXN historical prices (Nasdaq), close Nov 5, 2026 · Nasdaq · Tier 1: company or exchange filing · Nov 5, 2026
- S26EDGAR filing list for Texas Instruments Inc (CIK 0000097476) · U.S. Securities and Exchange Commission · Tier 1: company or exchange filing · Nov 6, 2026
Changes to this page (v1 · Nov 6, 2026)
- v1 · Nov 6, 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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