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How Does Texas Instruments Make its Money?
Texas Instruments is one of the world’s largest semiconductor companies, focused on analog and embedded processing chips. Unlike companies like NVIDIA or AMD that design cutting-edge processors, TI makes the fundamental building-block chips that go into virtually every electronic device — from industrial equipment and automotive systems to personal electronics and communications infrastructure. The company has over 80,000 products sold to more than 100,000 customers, giving it one of the most diversified customer bases in the semiconductor industry.
Texas Instruments (TXN) Business Model
Texas Instruments operates in the semiconductors sector. Below is a summary of Texas Instruments’ revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Texas Instruments’ 2024 fiscal year filings with the SEC.
Texas Instruments Competitors
Texas Instruments’s key competitors and comparable public companies in the semiconductors sector include Qualcomm, AMD, and Nvidia. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Texas Instruments stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
Texas Instruments’s total revenue in 2024 grew -6.9% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Analog | $12,100 | $13,100 |
| Embedded Processing | $2,700 | $2,900 |
| Other | $1,500 | $1,500 |
| Total | $16,300 | $17,500 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of Texas Instruments’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $16,300 | $17,500 |
| Cost of Revenue | $7,200 | $6,800 |
| Gross Profit | $9,100 | $10,700 |
| Operating Expenses | $4,100 | $3,800 |
| Operating Income | $5,000 | $6,900 |
| Net Income | $4,800 | $6,500 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 55.8% — This tells us how much profit Texas Instruments keeps after direct costs of delivering their product or service.
Operating Margin: 30.7% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: -6.9% — Year-over-year revenue growth from 2023 to 2024.
Is Texas Instruments Profitable?
Yes, Texas Instruments is profitable. The company reported net income of $4,800 on total revenue of $16,300.
Texas Instruments (TXN) Financial Summary
Texas Instruments (TXN) is a semiconductors company that generated $16,300 in total revenue in fiscal year 2024. The company earned $4,800 in net income, making it profitable. For a deeper look at Texas Instruments’ revenue breakdown, business segments, and financial performance, review the detailed analysis above.