Texas Instruments Inc. Revenue in 2024

Texas Instruments Inc. reported $15.6B in revenue for fiscal year 2024. This represents a decline of 10.7% compared to the 2023 figure of $17.5B.

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.