Texas Instruments Inc.
Semiconductors & Electronic ComponentsFounded 1951- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Texas Instruments Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$15.6B
Market Cap
$155.0B
Net Income
$4.5B
Employees
34,000
Texas Instruments earned $4.53 billion in net income on $15.6 billion in fiscal 2024 revenue — a 29% net margin that most manufacturers in any sector cannot approach. That margin is not an accident of favorable market conditions; it is the direct result of the 300-millimeter manufacturing strategy compounding over more than a decade of sustained capital investment in owned fabrication capacity. Revenue has contracted from $20 billion in fiscal 2022 to $15.6 billion in fiscal 2024 — a $4.4 billion decline driven by the same industrial inventory correction that affected most analog semiconductor companies. Industrial customers over-ordered during the supply chain disruptions of 2020 and 2021, then drew down that inventory through 2023 and 2024 rather than placing new orders. The cycle is well understood; the question is when industrial restocking begins and how quickly it rebuilds TI's top line. The $155 billion market capitalization prices TI at nearly ten times fiscal 2024 revenue — a multiple that prices in a recovery. At fiscal 2022 revenue levels and the same 29% net margin, TI earns approximately $5.8 billion in net income, implying a forward earnings multiple that is more reasonable than the current year figures suggest. The market is pricing recovery, not current performance. Capital expenditure has been elevated for several years as TI builds out 300-millimeter capacity at its Sherman, Texas and Lehi, Utah facilities. The Lehi facility acquisition in 2021 for $900 million represented 300-millimeter wafer manufacturing capability at a price roughly equivalent to building new clean-room infrastructure in a single year. When those facilities reach full use — expected as industrial demand recovers — the fixed cost absorption will push margins higher than the current fiscal 2024 levels.
Revenue Trend Analysis
YoY Change
-10.7%
4-Year CAGR
+2%
Peak Year
2022
Trend
Mostly Growing
Texas Instruments Inc. has reported revenue across 5 fiscal years, compounding at +2% annually over 4 years. The most recent year saw a 10.7% decline versus the prior year. Revenue peaked in 2022 at $20.0B. Out of 4 reported periods, 2 showed growth and 2 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $15.6B | $4.5B | -10.7% |
| FY2023 | $17.5B | — | -12.5% |
| FY2022 | $20.0B | — | +9.2% |
| FY2021 | $18.3B | — | +26.9% |
| FY2020 | $14.5B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Texas Instruments reported revenue of approximately $15.64 billion in fiscal year 2024, down from a peak of approximately $20.0 billion in 2022 as the industrial and personal electronics cycle softened. Revenue in 2023 was approximately $17.5 billion. The 2022 peak reflected post-pandemic chip demand and pricing strength across industrial, automotive, and personal electronics markets, with significant lead-time extension and price increases that buoyed revenue and margins. The 2023 and 2024 decline reflected customer inventory destocking, weak industrial demand particularly in Europe and China, and pricing normalization. Automotive revenue grew modestly even as other segments declined, reflecting the structural chip-content growth in electric vehicles and advanced driver-assistance systems. The cyclical revenue trajectory contrasts with TI's stated long-term focus on per-share free-cash-flow growth, which depends on cumulative profitability through cycles rather than peak revenue. Gross margin declined from peaks above 70 percent in 2022 to the low 60s in 2024, reflecting lower utilization and product mix. Free cash flow has been pressured by elevated capital expenditure for Sherman fabs, with 2024 free cash flow well below the long-term trend.
Texas Instruments Incorporated trades on the Nasdaq Stock Market under the ticker TXN and is a constituent of the S&P 500, Nasdaq 100, and other major indexes. Market capitalization sits around $155 to $180 billion as of recent trading. The company has paid a dividend consistently for decades, with the dividend per share increased every year for more than 20 consecutive years, qualifying TI as a dividend grower. The dividend rate has typically grown faster than revenue, reflecting TI's emphasis on returning cash to shareholders. TI also conducts share repurchases, with cumulative buybacks of more than $35 billion over Rich Templeton's CEO tenure significantly reducing the share count. The combined dividends and buybacks have made TI one of the most prolific returners of capital among large US semiconductor companies. The shareholder base is dominated by US institutional investors, including major index funds and dividend-focused mutual funds. The Sherman, Texas fab investment cycle has tilted the capital allocation framework toward higher capital expenditure and somewhat lower share repurchases in 2023 to 2025, with the dividend continuing to grow.
Texas Instruments has been one of the most consistently profitable semiconductor companies, with gross margins ranging from the high 50s to above 70 percent and operating margins typically in the 30s to 40s. The 2022 peak saw gross margin near 70 percent and operating margin near 51 percent, reflecting strong pricing and high fab utilization during the chip shortage. The 2023 and 2024 cyclical softness compressed gross margin to the low 60s and operating margin to the low 30s as utilization fell and pricing normalized. The structural margin drivers include the long-life-cycle analog product mix with high design-in switching costs, internal 300mm manufacturing scale, and a diversified end-market mix that limits exposure to any single application cycle. The company emphasizes per-share free cash flow as its primary financial metric, calculated as trailing free cash flow per diluted share, which through cycles has grown at a healthy compound rate. Capital expenditure has increased substantially in 2023 to 2025 due to the Sherman and Lehi fab investments, with planned capex of roughly $5 billion per year and structurally higher depreciation over the medium term. Long-term free cash flow growth is the principal capital-allocation guidepost.
Texas Instruments has returned massive amounts of capital to shareholders over the past two decades, with the bulk of returns coming through share repurchases supplemented by a steadily growing dividend. Under former CEO Rich Templeton, who led the company from 2004 to 2023, cumulative capital returns through dividends and buybacks exceeded $100 billion over his tenure, with share repurchases alone exceeding $35 billion. The buyback strategy has materially reduced the diluted share count from peaks above 1.7 billion shares in the mid 2000s to roughly 910 million shares in recent reporting, equivalent to a share-count reduction of approximately 45 percent. The dividend has been raised every year for more than 20 consecutive years, with the dividend rate growing significantly faster than revenue over the period. TI's stated capital-allocation framework prioritizes growing the dividend, reinvesting in the business through capital expenditure and R&D, and returning surplus cash through buybacks. The Sherman, Texas fab investment cycle has temporarily tilted free cash flow toward capex, but management has emphasized continuing the dividend growth track. The combination of operational profitability and disciplined capital allocation has produced strong total shareholder returns over the long term.
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CorpDigest. "Texas Instruments Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/texas-instruments/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Texas Instruments Inc. reported $16B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/texas-instruments/financials" target="_blank" rel="noopener">CorpDigest — Texas Instruments Inc. financials</a></div>