Texas Instruments Reports 16% Revenue Growth to $4.45 Billion in Q2 2025

Texas Instruments Incorporated (TI) reported strong financial results for the second quarter of 2025, with revenue reaching $4.45 billion, a 16% increase from $3.82 billion in the same quarter of 2024. The company's net income also rose to $1.30 billion, up from $1.13 billion year-over-year, resulting in earnings per share (EPS) of $1.41, compared to $1.22 in the prior year. For the first half of 2025, TI's revenue totaled $8.52 billion, a 14% increase from $7.48 billion in the first half of 2024, while net income grew to $2.47 billion from $2.23 billion.

The company's gross profit for the second quarter was $2.58 billion, reflecting a gross margin of 57.9%, slightly up from 57.8% in the previous year. Operating profit also increased to $1.56 billion, representing 35.1% of revenue, compared to 32.7% in the same quarter of 2024. TI's operating expenses rose to $1.01 billion, up from $963 million, primarily due to increased research and development (R&D) and selling, general, and administrative (SG&A) costs. The company reported other income and expense (OI&E) of $48 million, down from $130 million, attributed to lower interest income.

In terms of operational developments, TI's Analog segment, which includes Power and Signal Chain products, saw revenue increase by 18% to $3.45 billion, while the Embedded Processing segment reported a 10% rise in revenue to $679 million. The Other segment, which includes DLP products and calculators, also experienced a 14% increase in revenue to $317 million. The company noted that demand recovery in the industrial sector and macroeconomic factors contributed to these increases.

TI's balance sheet as of June 30, 2025, showed total assets of $34.93 billion, a decrease from $35.51 billion at the end of 2024. Cash and cash equivalents stood at $3.04 billion, down from $3.20 billion, while total liabilities were $18.53 billion, slightly down from $18.61 billion. The company maintained a strong liquidity position, with cash flow from operations for the first half of 2025 amounting to $2.71 billion, an increase from $2.59 billion in the same period of 2024.

Looking ahead, TI remains optimistic about its growth prospects, driven by ongoing demand in key markets such as industrial and automotive sectors. The company is currently evaluating the impact of recent U.S. tax law changes, which are expected to affect its effective tax rate in the near term. TI plans to continue investing in R&D and capital expenditures to support its long-term growth strategy, with a focus on enhancing its manufacturing capabilities and product offerings.