Texas Instruments (TXN) has released its second-quarter 2025 financial results, revealing key insights into its operational performance, capital management, and strategic outlook. This 8-K filing dated July 22, 2025, provides a comprehensive update on the company’s financial health and ongoing investments, particularly in manufacturing capacity expansion.
Texas Instruments reported second-quarter revenue of \(3.8 billion, marking a 4% sequential increase but a 16% decline year-over-year. The gross profit stood at \)2.2 billion, representing 58% of revenue, with a sequential gross margin improvement of 60 basis points. Operating profit was \(1.2 billion, or 33% of revenue, though down 37% from the prior year quarter. Net income was \)1.1 billion, translating to earnings per share (EPS) of \(1.22, which included a \)0.05 per share benefit not originally guided.
The company generated \(1.6 billion in cash flow from operations during the quarter and \)6.4 billion on a trailing twelve-month basis. Capital expenditures totaled \(1.1 billion for the quarter and \)5 billion over the past year. Free cash flow for the trailing twelve months was \(1.5 billion, inclusive of a \)312 million benefit from the CHIPS Act investment tax credit.
Texas Instruments returned \(4.9 billion to shareholders over the last twelve months through dividends and stock repurchases, with \)1.2 billion paid in dividends and \(71 million in stock buybacks during the quarter. The balance sheet remains robust with \)9.7 billion in cash and short-term investments. The company also reduced debt by \(300 million, with total debt outstanding at \)14 billion and a weighted average coupon of 3.8%.
The company’s revenue performance varied across end markets, reflecting asynchronous demand trends. The industrial market experienced a low-single-digit decline, automotive was down mid-single digits, while personal electronics grew mid-teens. Communication equipment and enterprise systems markets showed mid-single-digit and approximately 20% growth, respectively.
Texas Instruments continues to invest heavily in expanding its 300-millimeter manufacturing capacity, a strategic move to meet growing semiconductor content demand in industrial and automotive sectors. CEO Haviv Ilan emphasized the importance of geopolitically dependable, low-cost manufacturing capacity to support scalable customer demand.
For the third quarter of 2025, Texas Instruments projects revenue between \(3.94 billion and \)4.26 billion, with EPS expected in the range of \(1.24 to \)1.48. The company anticipates an effective tax rate above 13%.
This 8-K aligns with themes from prior earnings calls, where Texas Instruments highlighted the ongoing inventory adjustments by customers and the strategic focus on capital allocation to strengthen competitive advantages in manufacturing and technology. The emphasis on expanding 300-millimeter wafer capacity reflects confidence in long-term secular growth in semiconductor content, particularly in industrial and automotive markets.
Texas Instruments demonstrates resilience amid market fluctuations with solid cash flow generation, disciplined capital management, and strategic investments in manufacturing capacity. The company’s focus on long-term growth drivers and shareholder returns positions it well for sustained performance in the evolving semiconductor landscape.
For detailed financial data and the full 8-K report, visit the SEC filing here.
Tags: TXN, Texas Instruments, Q2 2025, semiconductor manufacturing, capital management, 300-millimeter wafer capacity