Q2 2025 Texas Instruments Inc Earnings Call Transcript
Key Points
- Revenue for the second quarter was $4.4 billion, marking a 9% sequential increase and a 16% year-over-year growth.
- Analog revenue grew 18% year-over-year, and embedded processing grew 10%, indicating strong performance in key segments.
- Enterprise systems revenue increased by about 40% year-over-year, showcasing significant growth in this sector.
- Gross profit margin improved by 110 basis points sequentially, reaching 58% of revenue.
- The company returned $6.7 billion to shareholders over the past 12 months through dividends and stock repurchases.
- Automotive market revenue decreased slightly sequentially and showed only mid-single-digit growth year-over-year, indicating a slower recovery in this segment.
- The company issued $1.2 billion of debt, increasing total debt outstanding to $14.15 billion.
- Inventory levels increased to $4.8 billion, with days of inventory at 231, which could indicate potential overstocking.
- Guidance for the third quarter suggests a typical seasonal quarter with revenue growth of only 11%, which is lower than previous expectations.
- Concerns about tariffs and geopolitical uncertainties continue to impact supply chains, adding complexity to future planning.
Welcome to the Texas Instruments second-quarter 2025 earnings conference call. I'm Mike Beckman, Head of Investor Relations, and I'm joined by our Chief Executive Officer, Haviv Ilan and our Chief Financial Officer, Rafael Lazardi.
For any of you who missed the release, you can find it on our website at ti.com/ir. This call is being broadcast live over the web and can be accessed through our website. In addition, today's call is being recorded and will be available via replay on our website.
This call will include forward-looking statements that involve risks and uncertainties that could cause TI's results to differ materially from management's current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today, as well as TI's most recent SEC filings for a more complete description.
Today, we'll provide the following updates. First, Haviv will start with a quick overview of the quarter. Next, he will provide insight into second-quarter revenue results with some details of what we are seeing with
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