The earnings call presented a mixed picture with notable achievements such as the growth in Analog revenue and a strong cash position. However, significant challenges were evident in the form of revenue declines, especially in the Embedded Processing segment, and decreased gross profit margins. The company is navigating a competitive environment and economic uncertainties impacting key markets like automotive and industrial.

Company Guidance

In the Texas Instruments (TXN) fourth quarter 2024 earnings call, executives provided a comprehensive overview of the company's financial performance and guidance for Q1 2025. The quarter saw a revenue of $4 billion, with a 3% sequential and 2% year-over-year decline. The analog segment experienced a 2% year-over-year growth after eight quarters of decline, while embedded processing declined by 18%. The industrial and automotive markets, comprising 70% of 2024 revenue, faced modest sequential declines. Gross profit amounted to $2.3 billion, representing 58% of revenue, but gross profit margin decreased by 190 basis points due to lower revenue, increased depreciation, and reduced factory loadings. Operating expenses were $937 million, up 4% year-over-year. The company returned $5.7 billion to shareholders over the past year and maintained a strong balance sheet with $7.6 billion in cash and short-term investments. Looking ahead, TXN expects Q1 2025 revenue to range between $3.74 billion and $4.06 billion, with earnings per share between $0.94 and $1.16, and an effective tax rate of about 12% for the year. The company remains focused on enhancing its competitive advantages, including manufacturing and technology, to drive long-term free cash flow per share growth.

Analog Revenue Growth

Analog revenue grew 2% year-over-year after 8 quarters of decline, signaling a positive turnaround in this segment.

Dividend Increase

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

Strong Cash Position

The company's balance sheet remains strong with $7.6 billion of cash and short-term investments at the end of the fourth quarter.

CHIPS Act Funding

Awarded up to $1.6 billion in CHIPS Act funding to support new 300-millimeter wafer fabs, with expectations of $7.5 billion to $9.5 billion in total funding over the life of the program.

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Texas Instruments (TXN) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TXN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 24, 2018	2018 (Q2)	- / 1.40	1.03	35.92% (+0.37)	―	―
Oct 23, 2018	2018 (Q3)	- / 1.58	1.26	25.40% (+0.32)	―	―
Jan 23, 2019	2018 (Q4)	- / 1.27	1.09	16.51% (+0.18)	―	―
Apr 23, 2019	2019 (Q1)	- / 1.26	1.35	-6.67% (-0.09)	―	―
Jul 23, 2019	2019 (Q2)	- / 1.36	1.4	-2.86% (-0.04)	―	―
Oct 22, 2019	2019 (Q3)	- / 1.49	1.58	-5.70% (-0.09)	―	―
Jan 22, 2020	2019 (Q4)	- / 1.12	1.27	-11.81% (-0.15)	―	―
Apr 21, 2020	2020 (Q1)	- / 1.24	1.26	-1.59% (-0.02)	―	―
Jul 21, 2020	2020 (Q2)	- / 1.48	1.36	8.82% (+0.12)	―	―
Oct 20, 2020	2020 (Q3)	- / 1.45	1.49	-2.68% (-0.04)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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TXN Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 23, 2025	$200.61	$185.52	-7.52%
Oct 22, 2024	$192.70	$200.42	+4.01%
Jul 23, 2024	$195.72	$195.71	>-0.01%
Apr 23, 2024	$162.16	$171.31	+5.64%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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