Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Common-Size Income Statement
Quarterly Data

Texas Instruments Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue (COR) -38.64 -41.99 -44.11 -42.58 -42.11 -43.16 -42.25 -40.40 -42.15 -42.78 -40.37 -37.89 -35.78 -34.62 -33.90 -30.99 -30.45 -29.83 -30.67 -32.11 -32.82 -34.79
Gross profit 61.36% 58.01% 55.89% 57.42% 57.89% 56.84% 57.75% 59.60% 57.85% 57.22% 59.63% 62.11% 64.22% 65.38% 66.10% 69.01% 69.55% 70.17% 69.33% 67.89% 67.18% 65.21%
Research and development (R&D) -9.79 -10.57 -11.78 -10.92 -11.85 -12.71 -12.25 -11.85 -13.03 -13.06 -11.28 -10.39 -10.53 -10.39 -9.29 -8.22 -7.94 -7.97 -8.05 -8.36 -8.54 -9.00
Selling, general and administrative (SG&A) -8.97 -9.62 -10.08 -9.64 -10.90 -11.60 -11.13 -10.31 -12.17 -12.43 -10.74 -9.97 -10.17 -10.82 -9.19 -8.22 -8.10 -8.60 -8.36 -8.87 -9.28 -9.91
Acquisition charges -0.31 -0.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.01 -1.05 -1.10
Restructuring charges/other 0.00 0.00 -0.72 -1.79 0.00 0.00 0.00 0.00 0.00 3.39 0.00 0.00 0.00 0.00 -1.03 -1.47 -1.27 -1.35 -1.12 0.00 0.00 0.00
Operating profit 42.28% 37.47% 33.30% 35.07% 35.14% 32.54% 34.36% 37.44% 32.65% 35.13% 37.60% 41.75% 43.52% 44.17% 46.60% 51.10% 52.24% 52.25% 51.80% 49.64% 48.32% 45.21%
Other income (expense), net (OI&E) 1.26 0.97 0.90 1.31 1.08 1.97 2.80 3.16 3.40 3.36 2.77 2.82 2.63 1.83 1.09 0.63 0.13 0.31 0.19 0.32 1.59 1.07
Interest and debt expense -2.58 -2.92 -3.19 -2.97 -2.99 -3.15 -3.24 -3.16 -3.43 -3.17 -2.40 -2.16 -1.96 -1.55 -1.28 -1.01 -0.94 -1.06 -1.01 -0.97 -0.96 -1.07
Income before income taxes 40.97% 35.52% 31.02% 33.40% 33.23% 31.36% 33.92% 37.44% 32.63% 35.32% 37.97% 42.41% 44.18% 44.44% 46.40% 50.72% 51.44% 51.50% 50.97% 49.00% 48.95% 45.21%
Provision for income taxes -4.72 -3.50 -4.73 -4.64 -4.11 -2.38 -3.84 -4.63 -3.14 -5.14 -4.34 -4.70 -6.18 -5.44 -4.39 -6.93 -7.48 -6.63 -6.73 -7.06 -6.79 -4.34
Net income 36.24% 32.02% 26.29% 28.76% 29.11% 28.98% 30.07% 32.81% 29.49% 30.18% 33.63% 37.71% 38.00% 39.00% 42.01% 43.79% 43.96% 44.87% 44.25% 41.93% 42.16% 40.87%

Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The financial performance across the observed period is characterized by a significant cyclical swing in profitability. After reaching a peak in operational efficiency in early 2022, the company experienced a multi-year contraction in margins that reached its lowest point in late 2025, followed by a notable recovery trend throughout the first half of 2026.

Gross Profitability Trends
Gross profit margins exhibited a strong upward trajectory from March 2021 (65.21%), peaking at 70.17% in March 2022. This was followed by a sustained decline, where the cost of revenue increased from 29.83% of revenue to a peak of 44.11% by December 2025. This compression resulted in gross margins bottoming at 55.89%. However, a recovery is evident in 2026, with gross margins climbing back to 61.36% by June 2026, indicating improved cost management or pricing power.
Operating Expense Analysis
Research and development (R&D) and selling, general, and administrative (SG&A) expenses both saw an increase in their share of revenue during the mid-period downturn. R&D spending rose from approximately 8-9% in 2021 to a peak of 13.06% in March 2023. SG&A expenses followed a similar pattern, peaking at 12.43% in December 2023. By June 2026, both categories showed a return to leaner levels, with R&D at 9.79% and SG&A at 8.97%, suggesting a successful effort to optimize operational overhead.
Operating and Net Income Performance
Operating profit margins mirrored the gross profit trend, peaking at 52.25% in March 2022 before declining to a low of 32.54% in March 2024. The recovery in 2026 brought operating margins back to 42.28%. Net income margins followed this volatility, dropping from a high of 44.87% in March 2022 to a low of 26.29% in December 2025, before rebounding to 36.24% by June 2026.
Financial Costs and Tax Impact
Interest and debt expenses as a percentage of revenue increased significantly over the period, rising from roughly 1% in 2021 to a peak of 3.43% in June 2024, reflecting higher borrowing costs or increased leverage. This was partially offset by a rise in other income (OI&E), which peaked at 3.40% in June 2024. The provision for income taxes remained relatively volatile, generally fluctuating between 3% and 7% of revenue, with a notable dip to 2.38% in March 2024.

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