Texas Instruments Reports $15.64 Billion Revenue, 10.7% Decline for Fiscal Year 2024

Texas Instruments Incorporated (TI) reported a revenue of $15.64 billion for the fiscal year ending December 31, 2024, marking a decrease of $1.88 billion, or 10.7%, compared to the previous year. The decline was primarily attributed to lower sales in both the Analog and Embedded Processing segments, which generated revenues of $12.16 billion and $2.53 billion, respectively. The company's gross profit also fell to $9.09 billion, down 17.5% from the prior year, resulting in a gross margin of 58.1%, down from 62.9%. Net income for the year was reported at $4.80 billion, translating to earnings per share (EPS) of $5.20, down from $7.07 in 2023.

In terms of operational changes, TI's Analog segment, which constitutes approximately 78% of total revenue, experienced a revenue decline of 7% due to a shift in product mix, particularly in the Signal Chain product line. The Embedded Processing segment saw a more significant drop of 25%, with operating profit decreasing by 65% to $352 million. The Other segment, which includes DLP products and calculators, also reported a revenue decrease of 15%, although its operating profit increased slightly.

Strategically, TI has continued to invest heavily in its manufacturing capabilities, with capital expenditures amounting to $4.82 billion in 2024, aimed at supporting future revenue growth. The company is ramping up production in its 300mm wafer fabrication facilities in Texas and Utah, which are expected to enhance manufacturing efficiency and reduce costs. Additionally, TI has benefited from the U.S. CHIPS and Science Act, receiving a cash benefit of $588 million in 2024, which was used to offset income taxes payable.

As of December 31, 2024, TI employed approximately 34,000 people, with about 90% engaged in research and development, sales, or manufacturing. The company reported a turnover rate of 9.1% for the year. TI's customer base remains diverse, with over 100,000 customers, and approximately 80% of revenue was generated through direct sales channels. The company continues to focus on enhancing its competitive advantages in manufacturing and technology, aiming for long-term growth in free cash flow per share.

Looking ahead, TI anticipates continued demand for semiconductors, particularly in the industrial and automotive markets, which are viewed as key growth areas. The company plans to maintain elevated levels of capital expenditures to support its long-term capacity expansion and operational efficiency goals. However, TI also acknowledges potential risks, including macroeconomic conditions, competitive pressures, and supply chain challenges that could impact its performance in the coming fiscal periods.