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• Revenue: $4 billion, a decrease of 3% sequentially and 2% year-over-year.

• Analog Revenue: Grew 2% year-over-year.

• Embedded Processing: Declined 18% year-over-year.

• Gross Profit: $2.3 billion, or 58% of revenue.

• Gross Profit Margin: Decreased 190 basis points sequentially.

• Operating Expenses: $937 million, up 4% year-over-year.

• Operating Profit: $1.4 billion, or 34% of revenue.

• Net Income: $1.2 billion, or $1.30 per share.

• Cash Flow from Operations: $2 billion in the quarter.

• Capital Expenditures: $1.2 billion in the quarter.

• Dividends Paid: $1.2 billion in the quarter.

• Stock Repurchases: $537 million in the quarter.

• Dividend Increase: 5% in the fourth quarter.

• Cash and Short-term Investments: $7.6 billion at the end of the quarter.

• Total Debt Outstanding: $13.7 billion.

• Inventory: $4.5 billion, up $231 million from the prior quarter.

• Free Cash Flow for 2024: $1.5 billion, or 10% of revenue.

• First Quarter 2025 Revenue Guidance: $3.74 billion to $4.06 billion.

• First Quarter 2025 EPS Guidance: $0.94 to $1.16.

• Warning! GuruFocus has detected 7 Warning Signs with TXN.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Texas Instruments Inc (NASDAQ:TXN) reported a 2% year-over-year growth in Analog revenue after eight quarters of decline.

• The company increased its dividend per share by 5% in the fourth quarter, marking the 21st consecutive year of dividend increases.

• Texas Instruments Inc (NASDAQ:TXN) has a strong balance sheet with $7.6 billion in cash and short-term investments.

• The company is strategically emphasizing growth in the industrial and automotive markets, which now make up about 70% of its revenue.

• Texas Instruments Inc (NASDAQ:TXN) received a $1.6 billion CHIPS Act grant, which will support its new 300-millimeter wafer fabs, enhancing its manufacturing capabilities.

Negative Points

• Fourth-quarter revenue decreased by 3% sequentially and 2% year-over-year, with Embedded Processing declining by 18%.

• Gross profit margin decreased by 190 basis points due to lower revenue, higher depreciation, and reduced factory loadings.

• Operating profit was down 10% from the same quarter a year ago.

• The company is experiencing a seasonal decline in Q1 revenue, expected to be down 2% to 3% sequentially.

• Embedded business margins are under pressure due to underutilization of the Lehi factory, impacting profitability.

Q & A Highlights

Q: You're guiding Q1 revenue down 2% to 3% sequentially. Can you provide some color by end market, especially regarding automotive and China? A: For Q1, we expect a seasonal decline, particularly in personal electronics, which usually shows a significant drop in Q1. Automotive and industrial markets should see less pronounced declines. In Q4, industrial and automotive markets behaved similarly to the overall company, with some sectors like industrial automation and energy infrastructure still declining. In automotive, China grew but not enough to offset declines in Europe, the US, and Japan.