TI(US:TXN)2025-10-23 17:50Financial Performance - Third quarter revenue was $4.74 billion, a 14% increase year-over-year, with net income of $1.36 billion and EPS of $1.48[73] - Gross profit for Q3 was $2.72 billion, up 10% year-over-year, but gross profit margin decreased to 57.4% from 59.6%[78] - Operating profit was $1.66 billion, representing 35.1% of revenue, down from 37.4% due to higher manufacturing costs[79] - Year-to-date revenue for 2025 reached $13.26 billion, a 14% increase compared to the same period in 2024[87] - Operating profit for the first nine months of 2025 was $4.55 billion, or 34.3% of revenue, compared to 35.1% in the previous year[90] - Revenue for the 12 months ended September 30, 2025, was $17.266 billion, up from $15.711 billion in 2024[105] Cash Flow and Investments - Cash flow from operations for the trailing 12 months was $6.9 billion, with free cash flow of $2.4 billion[73] - Cash flows from operating activities for the first nine months of 2025 were $4.90 billion, an increase of $579 million year-over-year[97] - Capital expenditures for the first nine months of 2025 were $3.63 billion, consistent with the previous year, primarily for semiconductor manufacturing[98] - Free cash flow for the 12 months ended September 30, 2025, was $2.415 billion, a 65% increase from $1.468 billion in 2024[105] - Financing activities used $4.03 billion in the first nine months of 2025, compared to $879 million in the prior year[101] Shareholder Returns - R&D and SG&A investments totaled $3.9 billion, capital expenditures were $4.8 billion, and $6.6 billion was returned to shareholders over the past 12 months[74] - Quarterly cash dividend increased by 4% to $1.42 per share, marking 22 consecutive years of dividend increases[100] Production and Operations - The company is transitioning production from older 150mm factories to more advanced 300mm wafer fabrication facilities[70] - Analog segment revenue increased 16% to $3.73 billion, while Embedded Processing revenue rose 9% to $709 million[84][85] Tax and Financial Position - The effective tax rate for Q3 was 14%, up from 12%, influenced by changes in U.S. tax law[82] - Total cash at the end of Q3 2025 was $5.19 billion, a decrease of $2.39 billion from the end of 2024[95] - Accounts receivable increased by $343 million to $2.06 billion, with days sales outstanding remaining at 39[95] - Inventory rose by $302 million to $4.83 billion, with days of inventory decreasing from 241 to 215[96] Future Outlook - The company expects to continue benefiting from the CHIPS Act, including a 25% ITC on qualifying manufacturing investments[99]