Texas Instruments Incorporated (TI) has reported its third quarter financial results for 2025, showcasing a robust performance driven by strong revenue growth and effective cost management. The company’s revenue for the quarter reached $4.74 billion, comparing favorably with $4.15 billion from the same period in the previous year. Additionally, TI’s net income was reported at $1.36 billion, translating to earnings per share of $1.48.
In a notable highlight, TI’s revenue increased by 7% sequentially and grew 14% year-over-year across all end markets, reflecting the company’s strong position in the semiconductor industry. President and CEO Haviv Ilan remarked on the fourth quarter outlook, projecting revenue between $4.22 billion and $4.58 billion and earnings per share to range from $1.13 to $1.39.
As part of its financial strategy, TI made significant investments in research and development, allocating $3.9 billion, while also spending $4.8 billion on capital expenditures. The company returned an impressive $6.6 billion to its shareholders, offering cash dividends of $1.36 per share, up from $1.30 the previous year.
TI’s cash flow from operations also demonstrated strength, amounting to $6.9 billion over the trailing twelve months. Free cash flow, a non-GAAP financial measure calculated as operating cash flow minus capital expenditures plus proceeds from CHIPS Act incentives, was reported at $2.4 billion for the same period. This emphasized the company’s liquidity and cash-generating capability, allowing for continued returns to shareholders.
In terms of segment performance, the Analog segment showed remarkable growth with revenue reaching $3.73 billion, a 16% increase, while the Embedded Processing segment grew 9% to $709 million in revenue. Although the Other segment experienced a slight decline in operating profit, overall, the diversified portfolio allows TI to remain resilient in the competitive landscape.
Despite any potential economic uncertainties, TI’s commitment to innovation and its strategic investments position it well for continued growth. The company’s strong performance in fiscal year 2025, combined with its proactive measures in research and development, paves the way for promising future prospects.