Analyst(s): Futurum Research
Publication Date: January 29, 2026
Texas Instruments’ Q4 FY 2025 results reflect improving demand across industrial, automotive, and data center markets, with bookings and revenue linearity strengthening throughout the quarter. Management emphasized disciplined inventory positioning and the benefits of 300-millimeter manufacturing as key enablers heading into FY 2026.
What is Covered in this Article:
- Texas Instruments’ Q4 FY 2025 financial results
- Industrial recovery and content growth
- Data center expansion across power and thermal
- Manufacturing, CapEx, and CHIPS Act impacts
- Guidance and Final Thoughts
The News: Texas Instruments (TI; NASDAQ: TXN) reported Q4 FY 2025 revenue of $4.4 billion, up 10% year over year (YoY), at par with the Wall Street consensus estimate. Analog revenue was $3.6 billion, up 14% YoY; Embedded Processing revenue was $662 million, up 8% YoY; and Other revenue was $146 million, down 34% YoY. Operating profit was $1.5 billion, up 7% YoY, with an operating margin of approximately 33%. Net income was $1.2 billion, down 3% YoY, and diluted EPS was $1.27, down 2% YoY.
“Our cash flow from operations of $7.2 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,” said Haviv Ilan, TI’s chairman, president, and CEO. “TI’s Q1 outlook is for revenue in the range of $4.32 billion to $4.68 billion and earnings per share between $1.22 and $1.48.”
Texas Instruments Q4 FY 2025 Earnings Highlight Industrial, Auto, DC Traction
Analyst Take: TI’s Q4 FY 2025 print and Q1 FY 2026 setup point to a measured recovery led by industrial and automotive, with data center becoming a more material contributor. The addition of “Data Center” as a distinct end market aligns TI’s portfolio to accelerate demand for rack power, thermal management, and networking. Elevated turns activity and improving bookings suggest customers are moving past inventory digestion, validating TI’s inventory posture and channel reach. With its six-year elevated CapEx cycle nearing completion, TI’s 300mm capacity and process control remain central to cost, availability, and long-dated product longevity advantages.
Industrial Recovery and Content Growth
Industrial revenue grew in the high-teens YoY in Q4 while remaining well below prior 2022 peaks, supporting a multi-quarter path to recovery as sectors normalize. Management emphasized secular content growth across factory equipment and automation, with generation-to-generation systems requiring more analog and embedded content. Orders improved, and revenue linearity strengthened through the quarter, indicating better buyer confidence even as the market remains “jittery.” Elevated turns orders and broad-based sector contributions provide incremental visibility, particularly as customers prioritize availability. TI’s diverse catalog and direct channel reach position it to capture incremental share as factory automation and power efficiency initiatives resume. The takeaway is that industrial is recovering on a healthier footing with secular content growth supporting durability.
Data Center Expansion Across Power and Thermal
Data Center revenue rose about 70% YoY in Q4 and has now grown for seven consecutive quarters, exiting the year at roughly a $450 million quarterly run rate. TI’s data center focus spans rack power, thermal management, networking, and compute-adjacent analog, aligning with AI and cloud infrastructure build-outs. Management expects data center momentum to continue into Q1, with demand supporting both performance systems and efficiency upgrades. TI’s re-segmentation adds organizational clarity and signals a long-term commitment to power and signal-chain leadership in hyperscale and enterprise racks. The company’s breadth of catalog parts and long product lifecycles offer a strong fit for sustaining deployments and second-source needs. Expect Data Center to remain a growing mix contributor as AI and power density trends persist.
Manufacturing, CapEx, and CHIPS Act Impacts
TI is nearing the end of a six-year elevated CapEx cycle centered on 300mm capacity, with 2025 CapEx at $4.6 billion and 2026 expected at $2–$3 billion. The company highlighted dependable, low-cost, 300mm scale as a core competitive advantage underpinning availability and gross margin over time. Free cash flow for FY 2025 rose 96% YoY to $2.9 billion, aided by $670 million in CHIPS Act-related cash benefits, reinforcing liquidity and investment flexibility. Inventory ended the quarter at $4.8 billion with 222 days, positioned intentionally across nodes and technologies to support high-turn demand. This manufacturing model and inventory strategy enable better service levels in volatile-demand environments across automotive, industrial, and data center markets. The implication is that TI’s structural manufacturing choices continue to support long-lived, diversified end-market exposure.
Guidance and Final Thoughts
For Q1 FY 2026, TI guided revenue to $4.3–$4.7 billion (consensus estimate: $4.4 billion) and EPS to $1.22–$1.48, with a 2026 effective tax rate expected at 13%–14%. Management cited improving orders, elevated turns demand, and continued data center growth as near-term supports, while personal electronics and communications equipment remain mixed. With CapEx normalizing toward $2–$3 billion in 2026 and 300mm capacity in place, TI is positioned to balance supply assurance with cost leverage. Industrial and automotive remain strategic priorities, complemented by the rising data center contribution as AI-era rack power and thermal needs expand. Near-term execution hinges on maintaining service levels while calibrating loadings to demand and preserving cash-generation discipline.
See the full press release on Texas Instruments’ Q4 FY 2025 financial results on TI’s website.
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