Texas Instruments Incorporated (NASDAQ: TXN) Q2 2025 Earnings | 07/23/2025

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Texas Instruments Incorporated delivered robust financial results for Q2 2025, highlighted by a strong rebound in revenue and profitability. The company reported revenue of $4.45 billion, marking a 16% year-over-year increase, and a sequential rise of 9% as broad-based demand returned across key industrial and automotive markets. Net income rose to $1.30 billion, yielding earnings per share (EPS) of $1.41, which exceeded analyst expectations and came with a small benefit not originally in management’s guidance. Operating profit surged 25% year-over-year to $1.56 billion, reflecting both top-line momentum and effective cost management. Segment performance was led by the Analog division, where revenues climbed 18% to $3.45 billion—nearly 78% of total revenue—while Embedded Processing grew 10% to $679 million. Other segments also delivered double-digit growth, including a notable 40% gain in enterprise systems. These gains were underpinned by a recovery in the industrial sector, where customers resumed device builds and inventory normalization. The company’s gross profit margin remained strong at 58%, with operating margin expanding to 35%. Operating cash flow for the quarter reached $1.9 billion, and capital expenditures were $1.3 billion, supporting ongoing investment in expanded 300mm production capacity. Texas Instruments maintained a solid balance sheet, ending the quarter with $5.36 billion in cash and short-term investments. Over the trailing 12 months, the company generated $6.4 billion in operating cash flow and $1.8 billion in free cash flow. Capital allocation remained disciplined, with $302 million spent on share repurchases and $1.24 billion paid out in dividends for the quarter alone—part of $6.7 billion returned to shareholders in the past year. Inventory levels edged up to $4.8 billion as the company ramped up production and managed supply chain risk. Looking ahead, management guided for Q3 2025 revenue in the range of $4.45 billion to $4.80 billion and EPS between $1.36 and $1.60, citing ongoing uncertainty around macroeconomic trends and specific U.S. tax legislation impacts. The company reaffirmed its strategic focus on analog and embedded processing markets while signaling continued investment in manufacturing and R&D to support long-term growth. About Inside Ticker: For more expert analysis and real-time updates on Texas Instruments Incorporated (NASDAQ: TXN) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #TexasInstruments #TXN #Q22025 #Earnings #Semiconductors #FinancialResults #Analog #EmbeddedProcessing #RevenueGrowth #NetIncome #Profitability #Automotive #Industrial #StockMarket #Investing #InsideTicker #CashFlow #Capex #Dividend #Guidance #ChipManufacturing #FreeCashFlow #OperationalEfficiency #MarketUpdate #2025Outlook