Texas Instruments Inc. Revenue & Financials

Texas Instruments' financial performance between 2022 and 2024 tells the story of a cyclically sensitive but structurally sound business navigating the most challenging demand environment it has encountered in two decades. At the peak of the semiconductor demand cycle in fiscal year 2022, TI generated revenue of approximately 20.03 billion dollars, operating income of approximately 8.75 billion dollars, and free cash flow of approximately 6.4 billion dollars—figures that represented record performances across all three metrics. The subsequent inventory correction was swift and severe. By fiscal year 2024, revenue had fallen to approximately 15.64 billion dollars, a decline of roughly 22 percent from the peak, while operating income compressed to approximately 4.37 billion dollars as fixed manufacturing overhead costs were spread across a lower revenue base and capital expenditure for the fab expansion program kept depreciation charges elevated. Gross margin fell from a peak of approximately 69 percent in 2022 to approximately 57 percent in fiscal year 2024, reflecting the absorption cost pressure of running fabs at below-optimal utilization. Despite these pressures, TI maintained its dividend—which it has increased for more than twenty consecutive years—at an annualized rate of approximately 5.20 dollars per share in 2024, distributing roughly 4.6 billion dollars to shareholders through dividends and share repurchases combined. The company ended fiscal year 2024 with cash and short-term investments of approximately 9 billion dollars and long-term debt of approximately 13.5 billion dollars, reflecting deliberate pre-funding of the capital expenditure program through debt issuance at favorable interest rates. Management's long-term financial model targets free cash flow of 25 to 35 percent of revenue through a full cycle, with the expectation that as new 300-millimeter capacity fills and depreciation normalizes, free cash flow margins will recover toward or above historical levels. First-quarter 2025 results showed sequential and year-over-year revenue improvement, suggesting the inventory correction was entering a recovery phase.