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)

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3 months ended: 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
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) -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 -35.08 -35.73 -35.72 -37.28
Gross profit 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% 64.92% 64.27% 64.28% 62.72%
Research and development (R&D) -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 -9.52 -10.11 -11.70 -11.32
Selling, general and administrative (SG&A) -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 -9.76 -10.66 -12.38 -12.53
Acquisition charges 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 -1.15 -1.34 -1.54 -1.50
Restructuring charges/other 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 0.00 0.00 -0.74 0.00
Operating profit 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% 44.48% 42.15% 37.91% 37.37%
Other income (expense), net (OI&E) 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 3.97 0.71 3.06 0.75
Interest and debt expense -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 -1.18 -1.28 -1.48 -1.35
Income before income taxes 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% 47.28% 41.58% 39.49% 36.77%
Provision for income taxes -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 -5.86 -6.13 3.12 -1.50
Net income 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% 41.41% 35.45% 42.61% 35.27%

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

Revenue and Cost of Revenue
Revenue remained stable at 100% throughout all periods. The Cost of Revenue (COR) demonstrated a general downward trend from -37.28% in early 2020 to a low of around -29.83% in early 2022, indicating improved cost efficiency. However, after this low, COR increased steadily, exceeding -40% in the mid-2024 quarters, suggesting rising production or operational costs.
Gross Profit
Gross profit margins improved consistently from 62.72% in early 2020, peaking around 70.17% in early 2022. This corresponds with the reduction in COR. From 2022 onward, gross profit margins have declined, dropping to approximately 56-58% by mid-2025, reflecting increased cost pressures impacting profitability.
Research and Development (R&D)
R&D expenses as a percentage of revenue initially decreased from -11.32% in early 2020 to a trough near -7.94% in early 2022, indicating cost optimization or reduced investment. Subsequently, these expenses grew, reaching peaks around -13.06% in mid-2024, signifying increased investment in innovation or product development in recent periods.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses decreased gradually from -12.53% in early 2020 to below -8% in 2021 and early 2022, suggesting efficiency improvements. A reversal occurred after this period, with SG&A costs rising again to around -12.4% by mid-2024, before somewhat retracting by mid-2025. This pattern may indicate cyclical variability or strategic changes in administrative spending.
Acquisition and Restructuring Charges
Acquisition charges declined modestly over 2020 and ceased to be reported after late 2021, suggesting a reduction or completion in acquisition activity. Restructuring and other charges appeared intermittently, with notable negative impacts around late 2021 and early 2022 and a positive anomaly in mid-2024, possibly reflecting one-time gains or reversals.
Operating Profit
Operating profit as a percentage of revenue rose from 37.37% in early 2020 to a peak near 52.25% in early 2022, indicating strong operational leverage. Following this peak, operating profit margins declined steadily to just above 32% by late 2024, with a slight recovery toward mid-2025, signaling margin compression potentially due to increased costs and expenses.
Other Income (Expense), Net
Other income/expense showed variability but generally exhibited a positive trend, increasing from below 1% in early 2020 to around 3.4% in mid-2024 before tapering off, which may have provided ancillary support to operating profits during this period.
Interest and Debt Expense
Interest and debt expense remained relatively stable and low until early 2022, after which there was a noticeable increase in expense ratios, peaking around -3.4% in mid-2024. This escalation suggests higher financing costs or increased debt levels during recent periods.
Income Before Income Taxes
Income before taxes mirrored operating profit trends, increasing from 36.77% in early 2020 to above 51% in early 2022, then declining to near 31-35% levels in subsequent quarters. This decline aligns with higher expenses and interest costs.
Provision for Income Taxes
Income tax provisions fluctuated significantly, showing some negative values indicating tax benefits or credits in certain quarters. The tax rate generally stayed around -2% to -7%, with some quarters exhibiting positive values possibly due to tax adjustments or one-time items.
Net Income
Net income margins followed a positive trend reaching highs above 44% in early 2022, reflecting peak profitability. The margin then declined gradually to approximately 29% by mid-2025, consistent with rising costs, increased interest expenses, and fluctuating tax provisions negatively impacting the bottom line.