"We continue to invest in our competitive advantages, which are manufacturing and technology, a broad-product portfolio, reach of our channels, and diverse and long-lived positions." - Rafael Lizardi, CFO
— Rafael Lizardi
03Detailed Report
TXN
Texas Instruments Incorporated
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
Texas Instruments (TXN) reported Q1 2024 financial results showing a revenue decline of 16% year-over-year (YoY) to $3.66 billion, reflecting a challenging macroeconomic environment and ongoing inventory corrections among its customers. Notably, Analog and Embedded Processing segments witnessed declines of 14% and 22% YoY respectively. Despite the revenue dip, the company emphasized its strong cash generation capabilities, reporting a net income of $1.1 billion and robust free cash flow of approximately $940 million over the past twelve months.
Management highlighted an expectation for a sequential revenue increase in Q2 2024 between $3.65 billion and $3.95 billion, signaling confidence in seasonal recovery alongside strategic inventory management. As Texas Instruments navigates this challenging phase, investments in manufacturing capacity remain a priority, leveraging competitive advantages in technology and operational efficiency to enhance long-term shareholder value.
Key Performance Indicators
Revenue
Decreasing
3.66B
QoQ: -10.20% | YoY: -16.40%
Gross Profit
Decreasing
2.10B
57.22% margin
QoQ: -13.82% | YoY: -26.83%
Operating Income
Decreasing
1.16B
QoQ: -24.20% | YoY: -39.92%
Net Income
Decreasing
1.11B
QoQ: -19.40% | YoY: -35.30%
EPS
Decreasing
1.21
QoQ: -19.33% | YoY: -35.29%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Q1 2024 revenues of $3.66 billion, down 16% YoY and down 10% sequentially. Net Income: Reported net income at $1.1 billion, translating to an EPS of $1.20. Gross Profit Margin: Decreased to 57% from 64% YoY, impacted by lower revenue and higher manufacturing costs. Operating Income: $1.3 billion, representing a 34% decline YoY. Free Cash Flow: Stable at approximately $940 million over the trailing twelve months, demonstrating effective cash flow management. Debt and Cash Position: Total debt of $14.3 billion with $10.4 billion in cash and short-term investments, providing a strong liquidity position.
Total Current Assets reached $17.45 billion, supported by strong working capital management. The company maintains a current ratio of 4.91, indicating solid short-term financial health.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.66B
-16.40%
-10.20%
Gross Profit
2.10B
-26.83%
-13.82%
Operating Income
1.16B
-39.92%
-24.20%
Net Income
1.11B
-35.30%
-19.40%
EPS
1.21
-35.29%
-19.33%
Key Financial Ratios
Gross Profit Margin
Good
57.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
31.70%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
30.20%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
3.17%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
6.51%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
4.91
Current ratio indicates excellent liquidity and financial flexibility