TXN TEXAS INSTRUMENTS INC

Overview and Growth

TEXAS INSTRUMENTS INC generated $17.68B of revenue in fiscal 2025, with net income of $5.00B and an operating cash inflow of $7.15B. The $17.68B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 13.0% from $15.64B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $5.45, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $5.20 in fiscal 2024, the current result was 4.8% higher. The revenue-to-assets relationship was 0.51x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $10.08B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 57.0%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $6.02B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 34.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $5.00B, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 28.3% margin after operating costs and the remaining recognized items. The earnings statement records $5.71B of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 32.3%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $709.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 12.4%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $34.59B asset base was financed through $18.31B of liabilities and $16.27B of equity. At period end, current assets of $13.75B compared with current liabilities of $3.16B, defining the company’s short-term resource position. The current ratio was 4.35x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $3.23B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 102.1% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $14.05B of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 0.86x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 40.6%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 52.9%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 9.3%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

The company reported $7.15B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.43x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $4.55B, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 63.6% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $2.60B, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 14.7%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 7.5%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.