TEXAS INSTRUMENTS INC SEC 10-Q Report

Texas Instruments Inc. (TI), a global leader in the design and manufacturing of semiconductors and various integrated circuits, has released its Form 10-Q report for the second quarter. The report highlights significant financial growth and operational advancements, driven by increased demand in key segments and strategic production initiatives.

Financial Highlights

• Revenue: $4,448 million, increased 16% from the same quarter a year ago due to higher demand in the Analog and Embedded Processing segments.
• Gross Profit: $2,575 million, up 16% due to higher revenue and reduced manufacturing costs related to increased factory loadings.
• Operating Profit: $1,563 million, representing 35.1% of revenue, up from 32.7% in the previous year, primarily due to higher revenue and associated gross profit.
• Net Income: $1,295 million, reflecting a 15% increase from the previous year, driven by higher revenue and improved gross profit margins.
• Diluted EPS: $1.41, compared to $1.22 in the previous year, reflecting the increase in net income.

Business Highlights

• Revenue Segments: The Analog segment, which includes Power and Signal Chain product lines, saw an 18% increase in revenue due to higher demand influenced by macroeconomic factors. The Embedded Processing segment, which includes microcontrollers and processors, experienced a 10% increase in revenue. The Other segment, which includes DLP® products, calculators, and custom ASIC products, reported a 14% increase in revenue.
• Geographical Performance: Revenue from the United States accounted for 38% of total revenue, showing a 21% increase from the previous year. China contributed 22% to the total revenue, with a 32% increase. The Rest of Asia and Europe, Middle East, and Africa regions contributed 11% and 20% respectively, with slight variations in their percentage contributions compared to the previous year.
• New Production Launches: The company is in the early ramping stages of its Lehi, Utah manufacturing facility, which is impacting the Embedded Processing segment. This facility is part of a broader strategy to expand 300mm wafer production capacity, which is expected to provide a competitive cost advantage.
• Future Outlook: The company anticipates that the One Big Beautiful Bill Act (OBBBA) will result in a higher effective tax rate in the third quarter and full year 2025, but expects a lower effective tax rate in 2026 and beyond. Additionally, tax-related cash payments are expected to be lower for the next several years due to changes in U.S. tax law.
• Inventory Strategy: The company continues to build inventory ahead of demand for broad-based products to maintain high levels of customer service and competitive lead times. This strategy is aimed at minimizing inventory obsolescence and improving manufacturing asset utilization.
• Macroeconomic Factors: The company notes that tariffs and geopolitical factors are reshaping global supply chains and affecting customer order behavior. Despite these challenges, the company believes the semiconductor cycle recovery is ongoing, with customer inventories remaining low.

SEC Filing: TEXAS INSTRUMENTS INC [ TXN ] - 10-Q - Jul. 29, 2025