In This Article:
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Revenue: $4.1 billion, up 2% sequentially and 11% year-over-year.
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Analog Revenue: Increased 13% year-over-year.
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Embedded Processing Revenue: Approximately flat year-over-year.
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Other Segment Revenue: Grew 23% from the year-ago quarter.
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Gross Profit: $2.3 billion, representing 57% of revenue.
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Operating Expenses: $989 million, up 6% from a year ago.
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Operating Profit: $1.3 billion, or 33% of revenue, up 3% year-over-year.
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Net Income: $1.2 billion, or $1.28 per share.
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Cash Flow from Operations: $849 million for the quarter.
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Capital Expenditures: $1.1 billion for the quarter.
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Free Cash Flow: $1.7 billion on a trailing 12-month basis.
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Dividends Paid: $1.2 billion in the quarter.
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Stock Repurchases: $653 million in the quarter.
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Total Debt Outstanding: $12.95 billion with a weighted average coupon of 3.93%.
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Inventory: $4.7 billion, up $160 million from the prior quarter.
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Second Quarter Revenue Guidance: Expected to be in the range of $4.17 billion to $4.53 billion.
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Second Quarter EPS Guidance: Expected to be in the range of $1.21 to $1.47.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Texas Instruments Inc (NASDAQ:TXN) reported a revenue increase of 11% year-over-year, reaching $4.1 billion in the first quarter of 2025.
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Analog revenue grew by 13% year-over-year, indicating strong performance in this segment.
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The industrial market showed a broad recovery, increasing in upper single digits after seven consecutive quarters of decline.
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Texas Instruments Inc (NASDAQ:TXN) returned $6.4 billion to shareholders over the past 12 months through dividends and stock repurchases.
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The company maintains a strong balance sheet with $5 billion in cash and short-term investments, providing financial stability.
Negative Points
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Gross profit margin decreased by 90 basis points sequentially, indicating some pressure on profitability.
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Operating expenses increased by 6% from the previous year, which could impact overall profitability.
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The personal electronics market declined by mid-teens, reflecting typical seasonal trends but also indicating potential weakness in this segment.
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There is high uncertainty in the global market due to tariffs and geopolitical tensions, which could impact future performance.
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Customer inventories are at low levels across all end markets, which could pose risks if demand does not recover as expected.
Q & A Highlights
Q: The guidance is up 7%, better than normal seasonal trends. Is there any indication of pull-ins ahead of tariffs? A: Haviv Ilan, CEO, explained that the recovery in the industrial market is a significant factor, with customer inventories at low levels. While there is uncertainty due to tariffs and geopolitical issues, the company is cautious but does not see an immediate near-term impact on the second quarter.