Texas Instruments Incorporated (Nasdaq: TXN), the Dallas-based semiconductor maker, reported second-quarter revenue of $5.46 billion on July 22, a 23% increase from the same quarter a year earlier. The company said growth was led by its industrial, data center and automotive markets.
The result reflects recovering demand for TI's analog and embedded processing chips, which are used across industrial and automotive electronics. Sales in those markets move with the semiconductor industry's supply and demand cycles, which had weighed on the sector in earlier quarters. Revenue also rose 13% from the first quarter.
Net income rose 53% to $1.98 billion, while operating profit increased 48% to $2.31 billion. Earnings came to $2.14 per share, up 52%, and included a 5-cent benefit that was not in the company's original guidance.
#Analog Revenue Rises 26% To $4.37 Billion
TI's Analog segment, its largest, generated revenue of $4.37 billion, up 26% from a year earlier. Segment operating profit rose 50% to $1.99 billion.
The Embedded Processing segment reported revenue of $788 million, up 16%. Its operating profit rose 98% to $168 million. Revenue in the smaller Other segment fell 2% to $310 million.
#Free Cash Flow Reaches $6.5 Billion Over 12 Months
TI reported free cash flow of $6.5 billion for the trailing 12 months, up from $1.76 billion a year earlier. Free cash flow, which the company defines as a non-GAAP measure equal to operating cash flow less capital expenditures plus CHIPS Act incentive proceeds, equalled 33.6% of revenue, up from 10.6%.
The increase partly reflected lower capital spending, which fell to $3.3 billion from $4.9 billion over the same period, alongside $1.18 billion in CHIPS Act incentive proceeds. Cash flow from operations was $8.7 billion for the trailing 12 months, up 35%.
"Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production," Haviv Ilan, TI's chairman, president and chief executive, said in the earnings release.
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#Texas Instruments Returns $5.8 Billion To Shareholders
TI returned $5.8 billion to shareholders over the trailing 12 months, down 13% from a year earlier. The total included $5.11 billion in dividends and $707 million in stock repurchases, with buybacks down 61%.
Over the same 12 months, the company invested $3.9 billion in research, development and selling, general and administrative costs, and $3.3 billion in capital expenditures.
#TI Guides Third-Quarter Revenue Up To $6.15 Billion
For the third quarter, TI guided to revenue of $5.65 billion to $6.15 billion and earnings per share of $2.23 to $2.57.
The company listed competition in the semiconductor industry, demand in the industrial and automotive markets, and global trade policies among the factors that could affect results. TI said its forward-looking statements are subject to risks and uncertainties that could cause actual outcomes to differ from its expectations.