Analysis of Reportable Segments
Texas Instruments Inc. operates in 2 segments: Analog and Embedded Processing.
Segment Profit Margin
Texas Instruments Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Analog | 38.64% | 37.89% | 44.64% | 54.42% | 52.62% |
| Embedded Processing | 11.27% | 13.90% | 29.93% | 38.42% | 38.50% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins for Analog and Embedded Processing exhibited distinct trends between 2021 and 2025. The Analog segment experienced a decline in profitability over the period, while the Embedded Processing segment saw a more substantial and consistent decrease.
- Analog Segment
- The Analog segment’s profit margin began at 52.62% in 2021 and increased slightly to 54.42% in 2022. Following this peak, a downward trend commenced, with margins decreasing to 44.64% in 2023, 37.89% in 2024, and stabilizing at 38.64% in 2025. While initial years showed positive performance, the segment ultimately experienced a significant reduction in profitability over the five-year period.
- Embedded Processing Segment
- The Embedded Processing segment’s profit margin started at 38.50% in 2021 and remained relatively stable at 38.42% in 2022. A more pronounced decline began in 2023, falling to 29.93%. This downward trajectory continued sharply, reaching 13.90% in 2024 and further decreasing to 11.27% in 2025. The segment demonstrated a consistent and accelerating loss of profitability throughout the analyzed timeframe.
- Comparative Analysis
- In 2021 and 2022, the Analog segment maintained a higher profit margin than the Embedded Processing segment. However, the rate of decline in the Embedded Processing segment was considerably faster, resulting in a substantial margin differential by 2025. By the end of the period, the Analog segment’s margin, while reduced, remained significantly above that of the Embedded Processing segment.
The observed trends suggest differing pressures impacting each segment. The Embedded Processing segment appears to be facing more significant challenges related to cost management, pricing, or market conditions compared to the Analog segment.
Segment Profit Margin: Analog
Texas Instruments Inc.; Analog; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 5,412) | 4,608) | 5,821) | 8,359) | 7,393) |
| Revenue | 14,006) | 12,161) | 13,040) | 15,359) | 14,050) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 38.64% | 37.89% | 44.64% | 54.42% | 52.62% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 5,412 ÷ 14,006 = 38.64%
The Analog segment demonstrated a fluctuating performance between 2021 and 2025. While initially exhibiting growth, operating profit and segment profit margin experienced declines before showing signs of stabilization. Revenue followed a similar pattern, with an initial increase followed by a decrease and subsequent recovery.
- Operating Profit
- Operating profit for the Analog segment increased from $7,393 million in 2021 to $8,359 million in 2022, representing a period of expansion. However, a substantial decrease was observed in 2023, with operating profit falling to $5,821 million. This downward trend continued into 2024, reaching $4,608 million, before a modest recovery to $5,412 million in 2025. The 2025 value remains below the 2021 and 2022 levels.
- Revenue
- Revenue mirrored the trend in operating profit, increasing from $14,050 million in 2021 to $15,359 million in 2022. A decline followed in 2023, with revenue decreasing to $13,040 million. This decrease continued in 2024, reaching $12,161 million, which represents the lowest revenue figure within the observed period. Revenue experienced a recovery in 2025, rising to $14,006 million, returning to the level observed in 2021.
- Segment Profit Margin
- The segment profit margin initially increased from 52.62% in 2021 to 54.42% in 2022, indicating improved profitability. However, the margin subsequently decreased, falling to 44.64% in 2023 and further to 37.89% in 2024. While a slight improvement was noted in 2025, with a margin of 38.64%, it remains significantly lower than the margins achieved in 2021 and 2022. The decline in profit margin suggests increasing cost pressures or pricing challenges within the segment.
The period between 2023 and 2024 appears to have been particularly challenging for the Analog segment, as evidenced by the concurrent declines in operating profit, revenue, and segment profit margin. The partial recovery observed in 2025 suggests a potential stabilization, but further monitoring is warranted to assess the sustainability of this trend.
Segment Profit Margin: Embedded Processing
Texas Instruments Inc.; Embedded Processing; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 304) | 352) | 1,008) | 1,253) | 1,174) |
| Revenue | 2,697) | 2,533) | 3,368) | 3,261) | 3,049) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 11.27% | 13.90% | 29.93% | 38.42% | 38.50% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 304 ÷ 2,697 = 11.27%
The Embedded Processing segment experienced a significant shift in financial performance between 2021 and 2025. While initially demonstrating strong profitability, a clear decline in segment profit margin is evident over the five-year period.
- Operating Profit
- Operating profit for the Embedded Processing segment increased modestly from $1,174 million in 2021 to $1,253 million in 2022. However, subsequent years show a consistent decrease, falling to $1,008 million in 2023, and continuing downward to $352 million in 2024 and $304 million in 2025. This represents a substantial reduction in absolute profit over the latter part of the analyzed period.
- Revenue
- Revenue followed a different trajectory. It increased from $3,049 million in 2021 to $3,261 million in 2022 and reached a peak of $3,368 million in 2023. A notable decrease occurred in 2024, with revenue dropping to $2,533 million, followed by a slight recovery to $2,697 million in 2025. Despite the 2025 increase, revenue remains below the 2023 high.
- Segment Profit Margin
- The segment profit margin began at a robust 38.50% in 2021 and remained relatively stable at 38.42% in 2022. A significant decline commenced in 2023, with the margin falling to 29.93%. This downward trend accelerated in 2024 and 2025, with margins reaching 13.90% and 11.27% respectively. The substantial decrease in profit margin suggests increasing cost pressures, pricing challenges, or a shift in the product mix towards lower-margin offerings within the Embedded Processing segment.
The divergence between revenue and operating profit trends indicates that while the segment initially maintained sales, its ability to convert those sales into profit has diminished considerably. The consistent decline in segment profit margin is the most prominent feature of the period, warranting further investigation into the underlying causes.
Revenue
Texas Instruments Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Analog | 14,006) | 12,161) | 13,040) | 15,359) | 14,050) |
| Embedded Processing | 2,697) | 2,533) | 3,368) | 3,261) | 3,049) |
| Other | 979) | 947) | 1,111) | 1,408) | 1,245) |
| Total | 17,682) | 15,641) | 17,519) | 20,028) | 18,344) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall revenue performance exhibits fluctuations across the analyzed period. While initial growth is evident, a subsequent decline and partial recovery are observed. Segment-level analysis reveals differing performance patterns, contributing to the overall trend.
- Analog Segment
- The Analog segment demonstrates initial growth from 2021 to 2022, increasing from US$14,050 million to US$15,359 million. However, revenue then decreased to US$13,040 million in 2023 and further to US$12,161 million in 2024. A recovery is noted in 2025, with revenue reaching US$14,006 million, returning to levels comparable to those observed in 2021.
- Embedded Processing Segment
- The Embedded Processing segment shows modest growth between 2021 and 2023, rising from US$3,049 million to US$3,368 million. A significant decrease is then observed in 2024, with revenue falling to US$2,533 million. This segment experiences a slight recovery in 2025, reaching US$2,697 million, but remains below the 2023 peak.
- Other Segment
- The 'Other' segment exhibits growth from 2021 to 2022, increasing from US$1,245 million to US$1,408 million. Revenue then declines to US$1,111 million in 2023 and further to US$947 million in 2024. A modest increase is observed in 2025, with revenue reaching US$979 million, but it does not fully recover to prior levels.
- Total Revenue
- Total revenue increased from US$18,344 million in 2021 to US$20,028 million in 2022. A subsequent decline is observed in 2023, with total revenue decreasing to US$17,519 million. This downward trend continues in 2024, reaching US$15,641 million, representing the lowest revenue figure within the analyzed period. A partial recovery is evident in 2025, with total revenue increasing to US$17,682 million, but it remains below the 2022 peak.
The declines observed in 2023 and 2024 appear to be broad-based, affecting all reportable segments. The 2025 figures suggest a potential stabilization, with revenue increasing across all segments, although the recovery is not uniform in magnitude.
Operating profit
Texas Instruments Inc., operating profit by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Analog | 5,412) | 4,608) | 5,821) | 8,359) | 7,393) |
| Embedded Processing | 304) | 352) | 1,008) | 1,253) | 1,174) |
| Other | 307) | 505) | 502) | 528) | 393) |
| Total | 6,023) | 5,465) | 7,331) | 10,140) | 8,960) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Operating profit exhibited varied performance across reportable segments between 2021 and 2025. Overall, total operating profit increased from 2021 to 2022, then declined significantly through 2024 before showing a modest recovery in 2025. A segment-by-segment analysis reveals differing trajectories.
- Analog
- The Analog segment demonstrated initial growth, increasing from US$7,393 million in 2021 to US$8,359 million in 2022. However, operating profit then decreased substantially to US$5,821 million in 2023 and further to US$4,608 million in 2024. A slight increase to US$5,412 million was observed in 2025, but remained below the 2022 peak. This segment contributed the largest portion of total operating profit throughout the period.
- Embedded Processing
- Operating profit in the Embedded Processing segment showed a modest increase from US$1,174 million in 2021 to US$1,253 million in 2022, followed by a decline to US$1,008 million in 2023. A significant decrease occurred in 2024, falling to US$352 million, and continued to decline to US$304 million in 2025. This segment experienced the most pronounced decline in operating profit over the analyzed period.
- Other
- The “Other” segment exhibited growth from US$393 million in 2021 to US$528 million in 2022, with relatively stable performance at US$502 million and US$505 million in 2023 and 2024, respectively. A decrease to US$307 million was observed in 2025. While smaller in magnitude compared to the other segments, this segment demonstrated relative stability until the final year.
The combined effect of these segment performances resulted in overall operating profit peaking at US$10,140 million in 2022. Subsequent years saw a decline to US$7,331 million in 2023 and US$5,465 million in 2024, before a partial recovery to US$6,023 million in 2025. The decline in total operating profit was primarily driven by the significant decreases observed in the Analog and Embedded Processing segments.