Texas Instruments Incorporated (TXN)

Business

From the FY2025 Form 10-K, accession 0000097476-26-000059.

Texas Instruments designs and manufactures analog and embedded processing semiconductors and sells them to electronics designers and manufacturers all over the world, more than 100,000 customers, with about half of revenue coming from customers outside the largest 50. Revenue in 2025 was $17.68 billion. Analog chips produced about 79% of it, Embedded Processing about 15%, and the rest came from DLP products, calculators and custom chips. By end market, industrial and automotive customers each accounted for 33% of 2025 revenue, personal electronics for 21%, data center for 9% and communications equipment for 3%. More than 80% of 2025 revenue was sold directly, including through TI.com, and less than 20% through distributors. The portfolio spans more than 80,000 products.

The company is headquartered in Dallas, Texas, is incorporated in Delaware, began operations in 1930, and has design, manufacturing or sales operations in more than 30 countries. It had about 33,000 employees at December 31, 2025, roughly 90% of them in R&D, sales or manufacturing, and its 2025 turnover rate was 10.1%.

Stated objective and strategy. Management names long-term growth of free cash flow per share as its objective and "the best metric for owners to measure our progress." The strategy has three elements:

1. A business model focused on analog and embedded processing products and built on four competitive advantages: a strong foundation of manufacturing and technology (lower cost, greater control of the supply chain); a broad product portfolio (more opportunity per customer); the reach of its market channels (access to more customers and more of their design projects); and the diversity and longevity of its products, markets and customer positions (less dependence on any single point, longer returns on investment).
2. Disciplined capital allocation. Over the ten years 2016–2025 the company allocated $109 billion. The largest share went to organic growth (R&D, sales and marketing, capital expenditures and inventory working capital), including about $24 billion of capital expenditures; management says capital spending will be "a greater component of free cash flow per share growth going forward" as the six-year elevated capital expenditures cycle nears completion. The remainder went to dividends, share repurchases and, for inorganic growth, acquisitions that meet its financial and strategic objectives.
3. Efficiency, which management describes as "constantly striving for more output for every dollar spent."

Segments. TI has two reportable segments, Analog and Embedded Processing, and reports everything else in Other:

• Analog had $14.01 billion of 2025 revenue. Analog chips condition, amplify and convert real-world signals (sound, temperature, pressure, light), and they manage power by converting, distributing, storing, discharging, isolating and measuring electrical energy. There are two major product lines. Power covers battery management, DC/DC and AC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references, multiphase controllers and power stages, and lighting. Signal Chain covers amplifiers, data converters, interface products, motor drives, clocks, logic and sensing.
• Embedded Processing had $2.70 billion of 2025 revenue. These products are the digital "brains" of electronic equipment: microcontrollers, processors, wireless connectivity and radar, used mainly in industrial and automotive. Customers often invest their own R&D in software that runs on these parts. That lengthens relationships, because many customers prefer to reuse the software from one product generation to the next.
• Other had $979 million of 2025 revenue from DLP products (mainly for projecting high-definition images), calculators and certain custom ASICs. Other also carries items that are not used to judge segment results: acquisition, integration and restructuring charges, litigation expense, environmental costs, and gains and losses on asset sales.

End markets in detail. TI realigned its markets in 2025 "to better reflect the growth opportunities for our analog and embedded products." Sectors are listed in declining order of revenue:

• Industrial (33%): industrial automation, aerospace and defense, energy infrastructure, building automation, medical and healthcare, test and measurement, other industrial equipment, appliances, power delivery and robotics.
• Automotive (33%): infotainment and cluster, ADAS, body electronics and lighting, hybrid/electric/powertrain, and chassis control and safety.
• Personal electronics (21%): mobile phones, PCs and notebooks, portable electronics, home theater, peripherals and printers, TVs, tablets, wearables, gaming and data storage.
• Data center (9%): data center compute, data center networking, and rack power and thermal management.
• Communications equipment (3%): wireless infrastructure, wired networking and broadband fixed line access.

Calculators were about 1% of revenue. Management gives additional strategic emphasis to industrial, automotive and data center, which it considers the best long-term growth opportunities.

Channel. Over several years TI has invested in order fulfillment, inventory programs, logistics, and website and e-commerce capabilities so it can sell directly. For customers who want to order through a distributor, it offers a single worldwide distributor and a few region-specific ones.

Manufacturing. TI owns and operates wafer fabrication and assembly/test facilities in North America, Asia, Japan and Europe, and makes most of its products in-house. Management presents this as a source of lower cost, greater control of the supply chain and "geopolitically dependable capacity" for customers. The cost argument rests on 300mm wafers: an unpackaged chip built on a 300mm wafer costs about 40% less than one built on a 200mm wafer. In 2025 the company kept qualifying and ramping its newest 300mm fabs in Richardson and Sherman, Texas, and Lehi, Utah. These fabs can take on customer demand, transfers from external foundries and transfers from TI's older 150mm facilities. In 2025 most wafer fabrication and most assembly and test were done internally, with outside foundries and subcontractors used selectively. The principal manufacturing and design sites are:

• United States: North Texas (Dallas, Richardson, Sherman); Lehi, Utah; South Portland, Maine; Tucson; Santa Clara; Houston.
• Asia and Europe: Chengdu and Shanghai, China; Freising, Germany; Bangalore, India; Aizu and Miho, Japan; Kuala Lumpur and Melaka, Malaysia; Baguio and Pampanga/Clark, Philippines; Taipei.
• Mexico: Aguascalientes.

U.S. facilities covered about 17.8 million square feet at December 31, 2025, and non-U.S. facilities about 12.8 million.

Inventory policy. TI aims to keep customer service high and lead times dependable. Its strategy is to build ahead of demand for broad-based products that are used across many applications and customers and carry little risk of obsolescence, adjusting factory loadings to execute that strategy.

Industry characteristics. The semiconductor cycle alternates between tight supply and surplus inventory, and the time and money needed to build and maintain fabs makes those swings larger. Revenue is somewhat seasonal: sequential growth has historically been weaker in the first and fourth quarters than in the second and third. Despite consolidation, the analog and embedded markets remain highly fragmented. TI competes with dozens of large and small companies, both broad-based and niche, including emerging companies, particularly in Asia.

Shareholder base and buyback authority. TI common stock trades on The Nasdaq Global Select Market. There were 10,238 holders of record at December 31, 2025. Repurchases are made under board authorizations of $12.0 billion (announced September 20, 2018) and $15.0 billion (announced September 15, 2022), which have no expiration date. At December 31, 2025, $18.79 billion remained available under them.

Risk factors

From the FY2025 Form 10-K, accession 0000097476-26-000059, condensed to the substantive risks. The September 2026 quarterly report (accession 0000097476-26-000169) incorporates these risk factors by reference and adds none.

Geopolitics, trade and exposure to China. TI has facilities in more than 30 countries, and about 60% of its revenue comes from customers headquartered outside the United States. Customers headquartered in China produced about 20% of 2025 revenue, but products shipped into China produced about 50%. The semiconductor industry faces increased regulatory activity and scrutiny. The United States and China in particular have seen geopolitical tension and government measures that include tariffs (some aimed at the products TI sells), import and export restrictions, embargoes, sanctions and limits on cross-border investment. These could limit TI's access to markets, keep it from delivering products or supporting customers, block it from buying or receiving manufacturing equipment and materials, or push customers to other suppliers. Other exposures include war and terrorism, public health crises, labor conditions, climate risk, and disruption of power, water, transportation, communications and IT networks. Remeasuring transactions in currencies other than the dollar can also hurt results.

Competition and pricing. TI faces intense technological and price competition from large competitors, niche competitors and emerging companies, particularly in Asia. China is actively promoting and reshaping its domestic semiconductor industry through policy and investment. Some competitors have the resources and government incentives to compete favorably, and consolidation among competitors may make them stronger. If TI cannot match price declines, cost efficiencies or technical advances, the pressure could lower margins and cost it business.

Demand, cyclicality and inventory matching. The semiconductor market's cycles occasionally cause large, rapid swings in demand. Results can suffer if one or more large customers stop or cut purchases, including because they change design or sourcing policies. Distributor inventory adjustments, tariffs and export controls are further risks. Whether a quarter's revenue forecast is met depends partly on matching inventory and production to the mix of orders. Wrong manufacturing forecasts can leave TI with too little, too much or obsolete inventory.

Margin variability and fixed cost. Margins move with demand and shipment volumes, capital spending and the depreciation it creates, manufacturing processes, product mix, inventory levels, tariffs and freight. Because TI owns much of its manufacturing capacity, a large share of operating cost is fixed, and the capacity expansion has raised capital spending and depreciation. These fixed costs do not fall when demand or factory loadings decline, so they can squeeze margins.

Manufacturing and supply chain. TI relies on third parties for goods and services and is exposed to supplier disputes, quality problems, cybersecurity incidents, natural events, and limited or delayed access to key materials, services and utilities. Geopolitical tension is disrupting and reshaping supply chains, and suppliers have lengthened lead times, limited supply or raised prices. Some key materials come mainly from a few geographies, and governments have adopted or proposed export controls on certain minerals, materials and equipment. Results could also suffer if TI fails to bring in new manufacturing technology, install equipment or staff its factories on time, or if its capacity investments do not earn the expected return. TI subcontracts part of its wafer fabrication and assembly/test, does not have long-term contracts with all of these suppliers, and has few alternatives.

Technology change and return on R&D. Rapid technological change can shorten product life cycles and lower average selling prices. TI generally spends on R&D before it knows a product will be commercially viable, may not earn the expected return, and may see no contribution from a viable project until at least a few years after it is finished.

Cybersecurity. TI's IT systems, and those of its customers, suppliers and other third parties, can be breached or disrupted by viruses, ransomware, malware, software vulnerabilities, unauthorized access, nation-state espionage, employee misconduct, use of AI tools or human error. An incident could compromise networks, corrupt or lose data, expose confidential or personal information, disrupt manufacturing and online services, and bring remediation costs, regulatory inquiries, penalties or damage claims. The company describes these threats as frequent, increasingly sophisticated and constantly evolving.

Strategic and organizational change. Acquisitions, divestitures, capital investments and restructuring may not deliver the expected growth, cost savings or other benefits, and the related charges could differ materially in amount and timing from expectations.

Natural events and site concentration. TI's manufacturing, data and design facilities are in places exposed to severe weather, geological events and epidemics, and climate change may make such events more frequent or more severe. A prolonged disruption at a principal manufacturing or design site could have a material effect.

People. TI's success depends on keeping and hiring skilled engineering, management, sales and technical staff in a market where competition for talent is intense, and on orderly succession for senior management and other key employees. Immigration laws and policies may limit international hiring and deployment of employees.

Product claims and legal proceedings. Warranty, product liability or delivery-failure claims could bring large defense costs, damages or settlements, compensation to customers, inventory write-offs and recall costs. The filing names automotive and handheld applications as examples. Product liability insurance may not be available or sufficient. Counterfeit products, or third parties mishandling or diverting TI parts, could damage its reputation.

Distribution. Distributors carry competing product lines and may promote those over TI's. Results could suffer if distributors run into financial trouble or government measures that affect their operations, and disputes with current or former distributors could be disruptive.

Legal, regulatory and tax. TI operates under complex international, national and local rules covering, among other things, the environment and climate, safety, health, trade, bribery and corruption, financial reporting, tax, data privacy, labor, competition, market access, intellectual property and currency movement. Compliance can be burdensome and costly and could restrict manufacturing or shipments. Environmental, safety and health rules could require abatement equipment beyond what TI uses, or require a material or process to be added or removed when no affordable substitute exists.

On tax, operations in more than 30 countries expose TI to many tax authorities and audits. Its tax rate could rise because of:

• shifts in where profits are earned;
• changes in available credits or deductions, including for stock compensation;
• changes in tax rates, tariffs or accounting rules;
• adverse audit outcomes.

Many countries have enacted or are enacting laws in line with the OECD's Base Erosion and Profit Shifting recommendations, and how these apply to U.S.-based multinationals is still uncertain. Government incentives, including tax incentives, could be reduced, modified, clawed back or ended, and TI may face more scrutiny of how it earns and spends them.

Intellectual property. Access to markets depends partly on keeping a strong patent portfolio in every jurisdiction where TI operates. There is no assurance that TI will obtain the rights it needs, or develop technology without infringing the rights of others. TI faces infringement claims directly and indirectly, including from entities that buy patents to enforce them, and customers may seek indemnification from it. Its own enforcement cannot stop all misappropriation, unauthorized copying and cloning, or counterfeit products bearing its trademark, and some countries protect intellectual property less than U.S. law does.

Financing and balance sheet. TI's ability to pay principal and interest depends on future performance, which is exposed to economic conditions and industry cycles. Debt payments could take funds away from operations or shareholder returns, or force TI to issue debt or equity or sell assets. Liquidity depends on continuous access to bank and investment accounts and credit lines, which unstable financial markets could cut off. The balance sheet carries a significant amount of goodwill, and impairment charges could hurt results.

Market-risk sensitivities at December 31, 2025. Forward currency contracts hedge most of TI's net balance-sheet exposure to currencies other than the dollar. A hypothetical 10% move in those currencies against the dollar would produce a pretax gain or loss of about $5 million. The contracts had a notional value of $675 million, including $174 million to sell Malaysian ringgit, $169 million to buy Indian rupee and $107 million to sell British pounds. A hypothetical 100-basis-point rise in interest rates would reduce the fair value of cash equivalents and short-term investments by about $11 million and of long-term debt by $969 million. Because the long-term debt carries fixed rates, rate changes would not affect its cash flows.

Management's discussion, fiscal 2025

From the FY2025 Form 10-K, accession 0000097476-26-000059.

How management described the year. In 2025 the analog and embedded semiconductor market kept recovering, "though at a slower pace than prior upturns, likely related to broader macroeconomic dynamics and overall uncertainty." Global semiconductor shipments stayed below their prior peak. Growing semiconductor content in electronics continued to drive demand, particularly in automotive, industrial and data center, and management believed TI had the inventory and capacity to meet immediate customer demand.

Full-year 2025 versus 2024.

• Revenue of $17.68 billion rose $2.04 billion, or 13.0%, because demand increased in Analog and, to a lesser extent, in Embedded Processing.
• Gross profit of $10.08 billion rose $989 million, or 10.9%, on the higher revenue. Higher manufacturing costs from the planned capacity expansions weighed on it, partly offset by lower costs from fuller factories. Gross margin fell to 57.0% from 58.1%.
• Operating expenses (R&D and SG&A) were $3.94 billion, against $3.75 billion.
• Restructuring charges/other was a $117 million charge. It covered efficiency efforts, including the planned closure of the two remaining factories with 150mm production, and a non-cash goodwill impairment related to custom ASIC products. In 2024 the same line was a $124 million credit, mainly a gain on the sale of a property.
• Operating profit was $6.02 billion, or 34.1% of revenue, against $5.47 billion, or 34.9%.
• Other income and expense was $230 million of income, against $496 million, because interest income was lower.
• Interest and debt expense of $543 million rose $35 million because of additional long-term debt.
• The tax provision was $709 million, against $654 million. The effective tax rate was 12.4%, against 12.0%. The increase reflected changes in the effect of U.S. tax benefits, including the One Big Beautiful Bill Act, and higher pretax income, partly offset by $37 million of higher discrete tax benefits, mainly related to non-U.S. operations.
• Net income was $5.00 billion, against $4.80 billion. EPS was $5.45, against $5.20.

U.S. tax legislation. The One Big Beautiful Bill Act, enacted July 4, 2025, allowed U.S. research spending and eligible capital spending to be expensed, increased the CHIPS Act investment tax credit, and made other changes. It raised TI's 2025 effective tax rate. For 2026 and later, management expects the effective rate and tax-related cash payments to be lower than they would have been under the old law.

2025 segment results.

Analog revenue rose about evenly in both product lines on higher demand. Its operating profit rose with revenue and gross profit, partly offset by higher operating expenses. Embedded Processing revenue also rose on higher demand, but its operating profit fell, mainly because of higher manufacturing costs and operating expenses. Other's operating profit fell $198 million; Other carries restructuring charges/other, which included the 2024 gain on the property sale.

The LFAB fab in Lehi, Utah, mainly supports Embedded Processing. At the end of 2025 management said it was bought as an operating fab and was "in the early stages of ramping, so we expect factory loadings to increase over time," adding: "Until LFAB ramps, we expect Embedded to carry manufacturing costs that disproportionately affect Embedded Processing operating profit as compared to Analog."

Financial condition at year-end 2025. Total cash (cash and cash equivalents plus short-term investments) was $4.88 billion, down $2.70 billion from the end of 2024. That was $3.23 billion of cash and equivalents and $1.66 billion of short-term investments. Accounts receivable were $1.96 billion, up $244 million, and days sales outstanding were 40, against 39. Inventory was $4.80 billion, up $277 million, but days of inventory fell to 222 from 241.

2025 cash flows.

• Operations provided $7.15 billion, up $835 million, because of higher net income and non-cash items, partly offset by more cash used for working capital. The total included $335 million of benefit from the CHIPS Act investment tax credit, used to reduce income taxes payable ($588 million in 2024).
• Investing used $1.44 billion, against $3.20 billion. Capital expenditures were $4.55 billion, against $4.82 billion. CHIPS Act incentives provided $335 million, including $75 million of direct funding, and short-term investments provided $2.78 billion.
• Financing used $5.69 billion, against $2.88 billion. TI raised $1.20 billion net from new fixed-rate long-term debt and retired $750 million of maturing debt. It paid $5.00 billion of dividends (against $4.80 billion, at a higher rate), spent $1.48 billion to repurchase 8.5 million shares (against $929 million for 4.7 million) and received $400 million from employee option exercises.

Free cash flow is a non-GAAP measure that the company defines as cash flow from operations less capital expenditures plus CHIPS Act incentive proceeds, and reconciles in its filings. It was $2.94 billion in 2025, or 16.6% of revenue, against $1.50 billion and 9.6% in 2024. Cash flow from operations was 40.5% of revenue, against 40.4%.

Capital spending plans. Management said TI is nearing the end of its six-year elevated capital expenditures cycle and expects to spend about $2 billion to $3 billion in 2026. Spending after 2026 will depend on revenue and growth expectations. Management expects TI to keep benefiting from the CHIPS Act. That includes the 35% investment tax credit on qualifying manufacturing assets placed in service after December 31, 2025, and direct funding of up to $1.6 billion for the three large 300mm fabs in Sherman, Texas, and Lehi, Utah.

Current quarter, third quarter and first nine months of 2026

From the Form 10-Q for the quarter ended September 30, 2026, accession 0000097476-26-000169, except where the October 21, 2026 earnings release (accession 0000097476-26-000165) is named.

What changed. Third-quarter revenue was $6.06 billion, up 11% from the second quarter and 28% from a year earlier. Management said growth continued broadly across industrial, automotive and data center. Net income was $2.43 billion and EPS $2.62. Management said it "saw broad demand, with revenue growth across all end markets and regions," and that "secular growth of semiconductor content is continuing alongside a strong cyclical recovery." It added that its investments have put it in a position to ramp its factories to support revenue growth. The earnings release noted that EPS included a 1-cent reduction that was not in the company's original guidance; it does not identify the item. In the July 22, 2026 earnings release (accession 0000097476-26-000148), management had guided to third-quarter revenue of $5.65 billion to $6.15 billion and EPS of $2.23 to $2.57. Actual revenue fell within that range, and EPS of $2.62 was above it.

Third quarter 2026 versus third quarter 2025.

• Revenue of $6.06 billion rose $1.31 billion, or 28%, because demand increased in Analog and, to a lesser extent, in Embedded Processing.
• Gross profit of $3.89 billion rose $1.16 billion, or 43%, mainly on the higher revenue. Gross margin rose to 64.2% from 57.4%.
• Operating expenses (R&D and SG&A) were $1.01 billion, against $975 million. R&D was $530 million and SG&A $476 million.
• Acquisition charges were $7 million, all transaction costs for the planned Silicon Labs acquisition. The year-ago quarter had instead carried an $85 million restructuring charge for efficiency efforts, including the closure of TI's remaining 150mm production.
• Operating profit was $2.87 billion, or 47.5% of revenue, against $1.66 billion, or 35.1%, mainly because of higher revenue and the gross profit that came with it.
• Other income and expense was $72 million of income, against $62 million, mainly because interest income was higher. Interest and debt expense was $141 million in both quarters.
• The tax provision was $380 million, against $220 million, because pretax income was higher. The effective tax rate, including discrete items, was 14% in both quarters. Discrete items reduced tax by $10 million this quarter, against $29 million a year earlier.
• Net income was $2.43 billion, against $1.36 billion. Diluted EPS was $2.62, against $1.48, on 921 million diluted shares, against 914 million.

Third quarter segment results.

Analog revenue rose in both product lines, led by Signal Chain, on higher demand. Embedded Processing revenue also rose on higher demand. In both segments operating profit rose mainly with revenue and the gross profit that came with it. Other's revenue fell $18 million while its operating profit rose $73 million. Other carries acquisition charges and restructuring charges/other: this quarter that meant the $7 million of Silicon Labs costs, and a year earlier the $85 million restructuring charge.

Management's language on the LFAB fab in Lehi has turned since the 10-K. It now says the fab "is continuing to ramp production, so we expect factory loadings to increase over time," and that "[a]s LFAB ramps, we expect Embedded to carry manufacturing costs that disproportionately benefit Embedded Processing operating profit as compared to Analog." At the end of 2025, management had said those costs would "disproportionately affect" that segment's operating profit until the fab ramped.

First nine months of 2026 versus 2025.

• Revenue of $16.34 billion rose $3.08 billion, or 23%.
• Gross profit of $10.04 billion rose $2.43 billion, or 32%. Higher manufacturing costs from the planned capacity expansions partly offset the gain. Gross margin was 61.4%, against 57.4%.
• Operating expenses were $3.01 billion, against $2.98 billion, and acquisition charges were $41 million.
• Operating profit was $6.99 billion, or 42.8% of revenue, against $4.55 billion, or 34.3%.
• Other income and expense was $188 million of income, against $190 million. Interest and debt expense of $423 million rose $21 million.
• The tax provision was $807 million, against $500 million, for an effective rate of 12% in both periods. Discrete items reduced tax by $121 million, against $114 million.
• Net income was $5.95 billion, against $3.84 billion. EPS was $6.44, against $4.18.

Nine-month segment results:

Revenue by end-customer geography, third quarter 2026. TI estimates this by where its end customers are headquartered. Revenue of $6,055 million breaks down as follows, with the year-earlier share in parentheses:

• United States: $2,348M, 39% (39%)
• China: $1,392M, 23% (21%)
• Europe, Middle East and Africa: $1,207M, 20% (20%)
• Rest of Asia: $635M, 10% (11%)
• Japan: $369M, 6% (7%)
• Rest of world: $104M, 2% (2%)

Customers headquartered in Germany produced 9% of revenue in the quarter, against 10% a year earlier.

Financial condition at September 30, 2026.

• Total cash was $8.14 billion, up $3.26 billion from the end of 2025: $4.21 billion of cash and equivalents and $3.93 billion of short-term investments.
• Accounts receivable were $2.62 billion, up $657 million, and days sales outstanding were 39, against 40 at year-end.
• Inventory was $4.67 billion, down $132 million, and days of inventory fell to 194 from 222. Management credits continued execution of its inventory strategy.
• Total stockholders' equity was $19.19 billion, up from $16.27 billion at year-end 2025, and total assets were $36.84 billion.
• Debt principal was $13.65 billion, against $14.15 billion at year-end, after TI retired $500 million of maturing 1.125% notes in September 2026. Including discounts and issuance costs, debt was carried at $13.56 billion, with an estimated fair value of $11.86 billion. The $650 million of 4.60% notes due 2027 is now the current portion.
• Treasury shares fell to 827 million from 834 million, and 913,770,316 common shares were outstanding on October 14, 2026.

Cash flows, first nine months of 2026. The quarterly report presents cash flows for the nine months only.

• Operations provided $7.64 billion, up $2.74 billion, because of higher net income and non-cash items and less cash used for working capital. The total included $380 million of CHIPS Act investment tax credit benefit used to reduce income taxes payable, against $246 million. Depreciation was $1.64 billion, against $1.38 billion.
• Investing used $2.74 billion, against $763 million. Capital expenditures were $1.65 billion, less than half the $3.63 billion of a year earlier, mainly for semiconductor manufacturing equipment and facilities. CHIPS Act incentives provided $1.10 billion, against $335 million, and short-term investments used $2.23 billion, against $2.55 billion provided a year earlier.
• Financing used $3.92 billion, against $4.03 billion. TI retired $500 million of maturing debt; a year earlier it raised $1.20 billion net and retired $750 million. Dividends paid were $3.88 billion, against $3.71 billion, at a higher rate. Buybacks fell to $233 million for 1.1 million shares, from $1.07 billion for 6.1 million shares. Employee option exercises brought in $770 million, against $358 million.
• Dividends declared and paid were $1.42 per share in each of the first three quarters of 2026, up from $1.36 in each of the first three quarters of 2025.

Third-quarter cash flows and the trailing twelve months. These figures come from the October 21, 2026 earnings release, accession 0000097476-26-000165.

• The quarter. Cash flow from operations was $3,419 million. Capital expenditures were $463 million, CHIPS Act incentive proceeds were nil, and free cash flow was $2,956 million. TI paid $1,298 million of dividends, spent $48 million on buybacks and repaid $500 million of debt.
• Twelve months to September 30, 2026. Cash flow from operations was $9.90 billion, against $6.90 billion, or 47.7% of revenue against 39.9%. Capital expenditures were $2.58 billion, against $4.82 billion, and CHIPS Act incentive proceeds $1.10 billion, against $335 million. Free cash flow was $8.42 billion, against $2.42 billion, or 40.6% of revenue against 14.0%. Twelve-month cash flow from operations included $469 million of CHIPS Act investment tax credit benefit, against $302 million. Management summarized the period as $4.0 billion invested in R&D and SG&A, $2.6 billion in capital expenditures and $5.8 billion returned to owners. That return was $5,174 million of dividends and $636 million of buybacks.

Capital plans and liquidity. Management repeated its expectation of $2 billion to $3 billion of capital expenditures in 2026, with later spending depending on revenue and growth expectations. It still expects the 35% CHIPS Act investment tax credit and up to $1.6 billion of direct funding for the Sherman and Lehi 300mm fabs; $630 million of that funding had been received. CHIPS Act incentives receivable were $1,100 million in current assets and $1,036 million in long-term assets, down from $1,709 million and $1,639 million at year-end 2025. The $1 billion variable-rate revolving credit facility runs until March 2027 and is indexed to Term SOFR. It was undrawn at September 30, 2026, and TI had no commercial paper outstanding. On September 17, 2026, TI announced a 7% increase in the quarterly dividend to $1.52 per share, its 23rd consecutive year of increases. In the third quarter it bought back 183,870 shares in the open market, leaving $18.56 billion of repurchase authorization at September 30, 2026.

Pending acquisition of Silicon Labs. TI announced on February 4, 2026 that it had agreed to acquire Silicon Labs for $231.00 per share in cash, a total enterprise value of about $7.5 billion. Closing is expected in the first half of 2027, subject to regulatory approvals and other customary conditions. TI plans to pay with cash on hand and debt. In June 2026 it entered a 364-day delayed draw term loan facility of up to $5 billion to fund the purchase price and related costs. That funding is available only if the acquisition is completed, and nothing was borrowed at September 30, 2026. Transaction-related acquisition charges were $7 million in the quarter and $41 million in the nine months.

Outlook. In the October 21, 2026 earnings release, management guided fourth-quarter 2026 revenue to $5.80 billion to $6.30 billion and EPS to $2.45 to $2.79.

Contingencies and accounting. TI recorded no material accruals or payments for product warranty or product liability in the periods presented. It routinely includes intellectual property indemnification in its terms of sale, says losses on these indemnities have historically been minimal and infrequent, and cannot reasonably estimate future liabilities. TI is party to various legal and administrative proceedings but does not expect them to have a material adverse effect. Three accounting updates are being evaluated, none yet adopted:

• ASU 2024-03, disaggregation of income statement expenses, effective for the period ending December 31, 2027;
• ASU 2025-06, internal-use software, effective March 31, 2028;
• ASU 2025-10, government grants, effective March 31, 2029.

Management concluded that disclosure controls and procedures were effective.

Subsequent events

The quarterly report for the quarter ended September 30, 2026 (accession 0000097476-26-000169) has no subsequent-events note; its notes end with supplemental financial information. The 10-K's only subsequent-event note (accession 0000097476-26-000059) covered the Silicon Labs agreement signed February 4, 2026. The following matters were outstanding at or arose after the September 30 close:

• Silicon Labs acquisition still pending. The October 2026 quarterly report still describes the deal as planned, at $231.00 per share in cash and an enterprise value of about $7.5 billion, with closing expected in the first half of 2027. The $5 billion delayed draw term loan arranged for it was undrawn at September 30, 2026. (Accession 0000097476-26-000169.)
• Third-quarter results and fourth-quarter outlook, October 21, 2026. The earnings release reported the third-quarter results above and guided fourth-quarter revenue to $5.80 billion to $6.30 billion and EPS to $2.45 to $2.79. (Accession 0000097476-26-000165.)
• Higher dividend payable after the quarter. The $1.52 quarterly dividend announced September 17, 2026 is payable November 10, 2026 to holders of record on October 30, 2026. It depends on formal declaration by the board at its regular October meeting, and the filings reviewed do not report that declaration. (Accession 0000950103-26-014118.)

The filings for this period disclose no acquisition or divestiture after September 30 other than the pending Silicon Labs deal, no debt issuance or repayment after September 30, and no litigation outcome.

Filings that contain financial statements

Each earnings release below (Exhibit 99 to a Form 8-K, Item 2.02) carries a consolidated income statement, balance sheet and cash flow statement with a summary table, in US dollars.

• Form 8-K filed Oct. 21, 2026, accession 0000097476-26-000165: third quarter 2026 (three months ended Sept. 30, 2026, versus the prior-year quarter).
• Form 8-K filed July 22, 2026, accession 0000097476-26-000148: second quarter 2026.
• Form 8-K filed Apr. 22, 2026, accession 0000097476-26-000097: first quarter 2026.
• Form 8-K filed Jan. 27, 2026, accession 0000097476-26-000003: fourth quarter and full year 2025.
• Form 8-K filed Oct. 21, 2025, accession 0000097476-25-000056: third quarter 2025.
• Form 8-K filed July 22, 2025, accession 0000097476-25-000033: second quarter 2025.

Acquisition: Silicon Labs (signed, not closed)

• Feb. 4, 2026 (8-K, 0001193125-26-036727): Texas Instruments and Silicon Laboratories Inc. announced a signed definitive agreement under which TI will acquire Silicon Labs for $231.00 per share in cash, an enterprise value of about $7.5 billion. TI expects about $450 million of annual manufacturing and operational synergies within three years after closing. Funding is to come from cash on hand and debt financing, with no financing contingency. Closing was expected in the first half of 2027, subject to regulatory approvals and customary conditions, including Silicon Labs stockholder approval.
• June 2026 (disclosed in the Form 10-Q for the quarter ended Sept. 30, 2026, accession 0000097476-26-000169; no separate 8-K among the filings reviewed): TI entered into a 364-day delayed draw term loan facility of up to $5 billion to support the acquisition consideration and related expenses. Funding is conditioned on completing the acquisition. No amount was drawn at Sept. 30, 2026.
• Status as of the Oct. 2026 10-Q: the deal remains pending. The filing describes the agreement as entered into, with closing "expected in the first half of 2027." TI recorded acquisition charges of $7 million in the third quarter and $41 million in the first nine months of 2026, all transaction-related.

Earnings and guidance

• Q3 2026 (0000097476-26-000165): revenue rose 11% from the prior quarter and 28% from Q3 2025, with growth in industrial, automotive and data center. Operating profit was $2,874 million versus $1,663 million a year earlier, and EPS of $2.62 included a 1-cent reduction not in original guidance. Revenue landed in the upper half of the range given in July ($5.65-6.15 billion), and EPS of $2.62 was above the $2.23-2.57 range.
• Trailing 12 months to Q3 2026: cash flow from operations $9.9 billion, free cash flow $8.4 billion (free cash flow is cash flow from operations less capital expenditures, plus U.S. CHIPS Act incentive proceeds), capital expenditures $2.6 billion, $5.8 billion returned to owners ($5,174 million dividends, $636 million repurchases). Cash and cash equivalents were $4,211 million and short-term investments $3,931 million at Sept. 30, 2026.
• Earlier quarters: Q1 2026 revenue rose 9% sequentially and 19% year over year (growth led by industrial and data center); Q2 2026 rose 13% sequentially and 23% year over year.
• The Q4 2025 release (0000097476-26-000003) showed a 7% sequential revenue decline to $4.42 billion before the 2026 recovery.

Capital actions

• Dividend increase, Sept. 17, 2026 (8-K, 0000950103-26-014118): the quarterly dividend rises 7%, from $1.42 to $1.52 per share ($6.08 annualized), payable Nov. 10, 2026 to holders of record Oct. 30, 2026, contingent on formal declaration by the board in October. This marks 23 consecutive years of increases.
• Dividend increase, Sept. 18, 2025 (8-K, 0000097476-25-000048): raised 4%, from $1.36 to $1.42 per share ($5.68 annualized), payable Nov. 12, 2025.
• Notes issuance, May 23, 2025 (8-K, 0001193125-25-125915): TI completed the sale of $1.2 billion of notes: $550 million of 4.500% notes due 2030 and $650 million of 5.100% notes due 2035, under an underwriting agreement dated May 20, 2025.
• Notes repayment: in September 2026, TI retired $500 million of maturing debt, the 1.125% notes due 2026 (Form 10-Q Note 6, accession 0000097476-26-000169; the Q3 2026 release 0000097476-26-000165 shows $500 million repayment of debt in the quarter). No 8-K covers the repayment.
• Repurchases: $48 million in Q3 2026 and $636 million over the trailing 12 months (0000097476-26-000165).

Management and governance

• Oct. 16, 2025 (8-K, 0000950103-25-013275): Executive Chairman Richard K. Templeton gave notice that he would retire as chairman and director on Dec. 31, 2025. The board appointed President and CEO Haviv Ilan as chairman effective on his retirement.
• Feb. 6, 2026 (8-K, 0001193125-26-040312, Item 5.03): the board approved by-law amendments on Feb. 3, 2026 adding an exclusive-forum provision (Delaware Court of Chancery for certain state-law corporate and derivative claims; federal district courts for Securities Act claims).
• Mar. 25, 2026 (8-K, 0001193125-26-124057): Senior Vice President Hagop Kozanian announced his retirement effective Aug. 31, 2026.
• Apr. 17, 2026 (8-K, 0000097476-26-000094): at the Apr. 16, 2026 annual meeting, stockholders elected the board and ratified Ernst & Young LLP as auditor for 2026 (757,840,159 for; 55,300,273 against; 9,502,527 abstaining).
• June 2, 2026 (8-K, 0000950103-26-008325): the board appointed Julie Knecht, vice president and Chief Accounting Officer since 2021, as senior vice president and Chief Financial Officer (and Chief Accounting Officer) effective Aug. 1, 2026. She succeeds Rafael Lizardi, who retires after 25 years; the filing states his retirement is not related to financial results, reporting practices or controls.

Not found in the filings

• No 8-K reports Silicon Labs stockholder approval, regulatory clearance or closing; the latest filing reviewed (the Oct. 2026 Form 10-Q) still describes the deal as planned.
• Restructuring charges/other were $85 million in Q3 2025 (8-K 0000097476-25-000056) and $32 million in Q4 2025, $117 million for full-year 2025 (8-K 0000097476-26-000003); the FY2025 10-K (0000097476-26-000059, Item 7) attributes the 2025 charge to efficiency efforts including the planned closures of the two remaining 150mm factories and a non-cash goodwill impairment related to custom ASIC products. No going-concern or covenant disclosure appears in the 8-Ks.

About this file

TXN annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Coverage note, FY2023. the FY2025 10-K presents balance sheets at December 31, 2025 and 2024 only, so no balance sheet is reported for fiscal 2023

TXN quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Cash flow source note, Q3 2026. the 10-Q presents cash flows for the nine months ended September 30, 2026 only; the three-month cash flow statement is printed in the third quarter 2026 earnings release furnished as Exhibit 99 to the Form 8-K filed October 21, 2026
• Cash flow source note, Q3 2025. the 10-Q presents cash flows for the nine months ended September 30, 2025 only; the three-month cash flow statement for 2025 is printed in the third quarter 2026 earnings release furnished as Exhibit 99 to the Form 8-K filed October 21, 2026
• Balance sheet source note, Q3 2025. the 10-Q presents balance sheets at September 30, 2026 and December 31, 2025; the unaudited balance sheet at September 30, 2025 is printed in the third quarter 2026 earnings release furnished as Exhibit 99 to the Form 8-K filed October 21, 2026

TXN year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

TXN trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Derivation. revenue, cash flow from operations, capital expenditures, proceeds from CHIPS Act incentives and the company-defined free cash flow are printed for the twelve months ended September 30, 2026 in the 10-Q's non-GAAP reconciliation (accession 0000097476-26-000169). Every other figure here is fiscal 2025 plus the nine months ended September 30, 2026 less the nine months ended September 30, 2025; the trailing-twelve-month dividends paid and stock repurchases obtained that way equal the amounts printed in the third quarter 2026 earnings release (accession 0000097476-26-000165).

Adjustments

Prior year to date

Taken from the SEC filings and normalized to actual dollars.

Notes

• Three filings supply every figure here: the fiscal 2025 Form 10-K filed February 6, 2026 (accession 0000097476-26-000059) for fiscal 2025, 2024 and 2023; the Form 10-Q for the quarter ended September 30, 2026 filed October 23, 2026 (accession 0000097476-26-000169) for the income statements, segment results and geographic revenue of the September 2026 and September 2025 quarters, the two nine-month periods, the trailing-twelve-month view and the balance sheet at September 30, 2026; and the third quarter 2026 earnings release furnished as Exhibit 99 to the Form 8-K filed October 21, 2026 (accession 0000097476-26-000165) for the three-month cash flow statements and the balance sheet at September 30, 2025. Every period records the accession its figures came from, and blocks sourced from a different filing than the rest of their period carry their own accession.
• The 10-Q's cash flow statement covers the nine months ended September 30, 2026 and 2025 only. Every three-month cash flow figure here, for the September 2026 and the September 2025 quarter alike, therefore comes from the third quarter 2026 earnings release (accession 0000097476-26-000165), which prints a full three-month cash flow statement for both years; each quarter carries that accession on its cash flow block. Those three-month figures equal the 10-Q's nine-month amounts less the six-month amounts in the second quarter 2026 Form 10-Q (accession 0000097476-26-000152), line for line.
• Texas Instruments defines free cash flow as cash flow from operations less capital expenditures plus proceeds from U.S. CHIPS and Science Act incentives. That is the measure reported here as free_cash_flow_including_chips_act_proceeds: $2.94 billion for fiscal 2025 and $1.50 billion for fiscal 2024 as printed in the 10-K, $2.96 billion for the September 2026 quarter as printed in the earnings release, and $8.42 billion for the twelve months ended September 30, 2026 as printed in the 10-Q. free_cash_flow is the plain measure, operating cash flow less capital expenditures, and is lower by the CHIPS Act proceeds in every period that received any; the September 2026 quarter received none, so the two measures are equal there.
• Cash outflows keep the sign the statements print, so capital expenditures, dividends paid, stock repurchases and the investing and financing totals are negative.
• The 10-K presents balance sheets at December 31, 2025 and 2024 only, so fiscal 2023 carries an income statement, cash flow statement, segment results and geographic revenue but no balance sheet.
• total_debt is the "Total debt, including net unamortized discounts, premiums and issuance costs" line of the long-term debt note: $14,048 million at December 31, 2025 and $13,596 million at December 31, 2024 in the 10-K, and $13,555 million at September 30, 2026 in the 10-Q, after $500 million of maturing notes was retired in September 2026. That note is not reproduced in the earnings release, so total debt at September 30, 2025 is the current portion plus long-term debt shown on the release's balance sheet, $14,046 million.
• The reported groupings are Analog, Embedded Processing and Other. The 10-K describes Other as DLP products, calculators and custom ASIC products; the 10-Q describes it as DLP products and calculators. In both, Other also carries acquisition, restructuring and certain corporate items, so the three groupings sum to consolidated revenue, gross profit and operating profit in every period shown.
• Acquisition charges of $7 million in the September 2026 quarter and $41 million in the first nine months of 2026 are transaction costs for the planned acquisition of Silicon Labs, announced February 4, 2026 at $231.00 per share in cash for a total enterprise value of about $7.5 billion. The 10-Q states closing is expected in the first half of 2027, subject to regulatory approvals and other customary closing conditions, and that a 364-day delayed draw term loan facility for borrowings of up to $5 billion, entered into in June 2026, had nothing outstanding at September 30, 2026.
• Restructuring charges/other of $85 million in the September 2025 quarter related, in the 10-Q's words, to efforts to drive operational efficiencies, including the closure of the company's remaining 150mm production. There were no such charges in the first nine months of 2026.
• Earnings per share are struck under the two-class method: part of net income is allocated to unvested restricted stock units that carry dividend equivalents, so diluted EPS uses income allocated to common stock ($2,411 million of the $2,425 million earned in the September 2026 quarter; $4,973 million of fiscal 2025's $5,001 million) rather than net income itself. Net income divided by the diluted share count therefore runs one to about four cents above reported diluted EPS.
• The nine-month periods and the trailing twelve months sit in their own blocks (year_to_date, prior_year_to_date, trailing_twelve_months). The quarterly list holds only discrete three-month periods and the annual list only full fiscal years.
• Revenue, cash flow from operations, capital expenditures, CHIPS Act incentive proceeds and the company-defined free cash flow for the twelve months ended September 30, 2026 are printed in the 10-Q. Every other figure in that block is fiscal 2025 plus the nine months ended September 30, 2026 less the nine months ended September 30, 2025, and the five printed figures match that arithmetic exactly, as do the trailing-twelve-month dividends paid ($5,174 million) and stock repurchases ($636 million) printed in the earnings release.
• Dividends declared and paid per share are printed in the row labels of the statements of stockholders' equity: $5.50, $5.26 and $5.02 for fiscal 2025, 2024 and 2023, and $1.42 and $1.36 for the September 2026 and September 2025 quarters, which the earnings release also prints as cash dividends declared per common share. The nine-month rates of $4.26 and $4.08 add the three quarterly rates in each period.
• Free cash flow for the nine-month periods is calculated from the operating cash flow, capital expenditures and CHIPS Act proceeds printed in the 10-Q's nine-month cash flow statement; the company does not print a nine-month free cash flow figure.
• revenue_by_geography follows the company's own estimate of revenue by the geographic location of the end customer's headquarters, which it describes as where critical decisions are made, rather than where product is shipped.
• The 10-K states that certain amounts in prior periods' financial statements were reclassified to conform to the 2025 presentation.
• Texas Instruments reports in U.S. dollars, has no stock split on record over the periods covered, and its shares are ordinary common stock rather than American depositary shares, so no currency translation, split restatement or depositary-ratio adjustment was applied.

Uncertainties

• Trailing-twelve-month diluted EPS of $7.71 (basic $7.76) is the sum of the reported per-share amounts on the same fiscal 2025 plus nine months less nine months basis. The company reports no per-share figure for a trailing twelve-month period, and no weighted share count is given in that block because none is reported for such a period.
• Free cash flow for fiscal 2023 ($1,349 million) is calculated from the operating cash flow and capital expenditures printed for that year. It does not appear in a published free cash flow reconciliation (the one in the fiscal 2025 10-K covers fiscal 2025 and 2024 only), and CHIPS Act incentive proceeds were nil in fiscal 2023, so the plain and company-defined measures coincide there.
• Free cash flow for the September 2025 quarter is calculated from the three-month cash flow statement in the third quarter 2026 earnings release: $993 million on the plain measure and $1,068 million including $75 million of CHIPS Act proceeds. The company-defined figure agrees with the free cash flow Texas Instruments reconciled for the three months ended September 30, 2025 in its third quarter 2025 earnings release (accession 0000097476-25-000056), which prints cash flow from operations of $2,190 million, capital expenditures of $1,197 million, proceeds from CHIPS Act incentives of $75 million and free cash flow (non-GAAP) of $1,068 million.
• The balance sheet at September 30, 2025 comes from the third quarter 2026 earnings release (accession 0000097476-26-000165) rather than from a 10-Q, and is unaudited; the 10-Q for the September 2026 quarter prints balance sheets at September 30, 2026 and December 31, 2025 only. Total debt at that date is the sum of the current portion and long-term debt on that balance sheet.
• The segment, geographic area and debt tables in the 10-Q carry no scale note of their own. They are read in millions: that is the basis the 10-K states for the tables in its notes, the 10-Q states it is prepared on the same basis as the 10-K, and each table's totals tie exactly to the income statement and balance sheet faces, which are labelled in millions.
• The nine-month dividend rates of $4.26 and $4.08 per share add the three quarterly rates printed in the statements of stockholders' equity; no nine-month rate is printed.

Company details

Fiscal period

Source filings