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Jun 30, 2020

Texas Instruments Q2 2020 Earnings Report

Texas Instruments reported a decrease in revenue due to weakness in the automotive market, but net income increased.

Key Takeaways

Texas Instruments reported Q2 2020 revenue of $3.24 billion, a 12% decrease year-over-year, primarily due to weakness in the automotive market. Net income increased by 6% to $1.38 billion, with earnings per share of $1.48, including a 33-cent benefit from items outside the company's original guidance.

Revenue decreased 12% from the same quarter a year ago, driven primarily by weakness in the automotive market.

Analog revenue declined 4% and Embedded Processing declined 31% from the same quarter a year ago.

Cash flow from operations for the trailing 12 months was $6.3 billion, and free cash flow was $5.7 billion, representing 42% of revenue.

Returned $6.7 billion to owners in the past 12 months through stock repurchases and dividends.

Total Revenue
$3.24B
Previous year: $3.67B
-11.7%
EPS
$1.48
Previous year: $1.29
+14.7%
Gross Profit
$2.08B
Previous year: $2.36B
-11.8%
Cash and Equivalents
$4.29B
Previous year: $3.81B
+12.6%
Free Cash Flow
$1.59B
Previous year: $1.51B
+5.2%
Total Assets
$17.4B
Previous year: $17.4B
+0.4%

Texas Instruments

Texas Instruments

Texas Instruments Revenue by Segment

Forward Guidance

TI’s third quarter outlook is for revenue in the range of $3.26 billion to $3.54 billion, and earnings per share between $1.14 and $1.34.

Positive Outlook

  • Revenue between $3.26 billion and $3.54 billion
  • EPS between $1.14 and $1.34

Revenue & Expenses

Visualization of income flow from segment revenue to net income