Texas Instruments (TXN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $4.42 billion, up 10% year-over-year but down 7% sequentially, with strong growth in analog and embedded processing and the data center segment added as a new end market.

• Industrial, automotive, and data center markets now comprise 75% of annual revenue, reflecting a strategic focus on these sectors.

• Net income for Q4 2025 was $1.16 billion, or $1.27 per share, including a $0.06 EPS reduction from non-cash goodwill impairment and tax items.

• Free cash flow for 2025 was $2.9 billion, with cash flow from operations at $7.2 billion.

• $6.5 billion was returned to shareholders over the past 12 months through dividends and stock repurchases.

Financial highlights

• Q4 gross profit was $2.5 billion (56% of revenue), with a 150 basis point sequential margin decline.

• Q4 2025 operating profit was $1.5 billion (33% of revenue), up 7% year-over-year.

• Annual revenue for 2025 was $17.68 billion, up from $15.64 billion in 2024.

• Annual net income for 2025 was $5.00 billion, up from $4.80 billion in 2024.

• Free cash flow margin improved to 16.6% from 9.6% year-over-year.

Outlook and guidance

• Q1 2026 revenue is expected between $4.32–$4.68 billion, with EPS guidance of $1.22–$1.48.

• Effective tax rate for 2026 projected at 13–14%.

• CapEx for 2026 expected between $2–$3 billion, with depreciation of $2.2–$2.4 billion.