TXN Q3 2025 Profit Up 0%, Revenue Jumps 14%

Texas Instruments (TXN.US) reported third-quarter 2025 revenue of $4.74 billion and net income of $1.36 billion. This represents a 14% increase in revenue and a 0% increase in net income compared to the same quarter last year. Earnings per share for the quarter were $1.48, slightly above the analyst estimate of $1.47, even after a 10-cent reduction not included in original company guidance.

Strong Segment Performance

Revenue saw a sequential increase of 7% and a year-over-year increase of 14%, with growth observed across all end markets. The Analog segment significantly contributed to this performance, posting revenue of $3.73 billion, up 16% year-over-year, and an operating profit of $1.49 billion, an increase of 13%.

The Embedded Processing segment also demonstrated positive growth, with revenue reaching $709 million, a 9% increase compared to the prior year. Despite this revenue growth, the segment's operating profit remained largely stable at $108 million, showing a slight decrease of 1%.

Cash Flow and Shareholder Returns

Cash flow from operations for the trailing 12 months reached $6.9 billion, underscoring the company's robust business model and product portfolio strength. Free cash flow for the same period stood at $2.4 billion, representing a substantial 65% increase from the prior year, highlighting strong liquidity.

The company continued its commitment to shareholder returns, investing $3.9 billion in R&D and SG&A, and $4.8 billion in capital expenditures over the past 12 months. Total cash returned to owners amounted to $6.56 billion, an increase of 26% compared to the previous year, driven by a 253% surge in stock repurchases.

Management Outlook

For the fourth quarter, Texas Instruments anticipates revenue to be in the range of $4.22 billion to $4.58 billion. The company projects earnings per share to be between $1.13 and $1.39 for the upcoming quarter.