Ctrl K
Operating cash flow reached $2.7B (1.37x net income) and FCF turned positive at $2.2B (40.1% margin), but capex remains elevated at $514M and dividends ($1.3B) far exceed buybacks ($27M), signaling a shift to income return.
Texas Instruments Incorporated (TXN) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 8.67B | 7.15B | 6.32B | 6.42B | 8.72B | 8.76B | 6.14B | 6.65B | 7.19B | 5.36B | 4.61B | 4.27B | 3.89B | 3.38B | 3.41B | 3.26B | 3.82B | 2.64B | 3.33B | 4.41B | 2.46B | 3.77B | 3.15B | 2.15B | 1.99B | 1.82B | 2.19B | 2.36B | 1.25B | 1.92B | 884M |
| Operating CF Margin % | - | 40.45% | 40.39% | 36.65% | 43.54% | 47.73% | 42.45% | 46.23% | 45.55% | 35.85% | 34.51% | 32.83% | 29.84% | 27.73% | 26.62% | 23.71% | 27.35% | 25.35% | 26.64% | 31.85% | 17.26% | 28.17% | 25.01% | 21.87% | 23.76% | 22.18% | 18.4% | 24.15% | 14.1% | 19.21% | 8.89% |
| Operating CF Growth % | 163.61% | 13.22% | -1.59% | -26.38% | -0.41% | 42.63% | -7.67% | -7.51% | 34.05% | 16.23% | 8.11% | 9.66% | 15.01% | -0.88% | 4.85% | -14.76% | 44.53% | -20.63% | -24.42% | 79.11% | -34.78% | 19.9% | 46.26% | 7.98% | 9.51% | -16.75% | -7.3% | 88.41% | -34.71% | 116.74% | -46.97% |
| Net Income | 6.05B | 5B | 4.8B | 6.51B | 8.75B | 7.77B | 5.59B | 5.02B | 5.58B | 3.68B | 3.6B | 2.99B | 2.82B | 2.16B | 1.76B | 2.24B | 3.23B | 1.47B | 1.92B | 2.66B | 2.64B | 2.32B | 1.86B | 1.2B | -344M | -201M | 3.09B | 1.45B | 189M | 1.21B | 63M |
| Depreciation & Amortization | 2.22B | 2B | 1.58B | 1.24B | 979M | 954M | 992M | 1.05B | 954M | 904M | 955M | 1.13B | 1.23B | 1.22B | 1.3B | 1.01B | 913M | 925M | 1.06B | 1.07B | 1.22B | 1.56B | 1.55B | 1.53B | 1.69B | 1.83B | 1.38B | 1.07B | 1.14B | 1.11B | 904M |
| Stock-Based Compensation | 539M | 419M | 387M | 362M | 289M | 230M | 224M | 217M | 232M | 242M | 252M | 286M | 277M | 287M | 263M | 269M | 190M | 186M | 213M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 52M | -19M | -210M | -299M | -191M | 15M | -137M | 81M | -105M | 112M | -202M | -55M | -61M | 50M | 65M | -119M | -220M | 146M | -182M | 34M | -200M | -194M | 68M | 75M | 13M | 19M | 1M | -9M | -50M | -148M | -51M |
| Other Non-Cash Items | -6M | 24M | -127M | -292M | -293M | -47M | -107M | -29M | -74M | 5M | -139M | -176M | -152M | -48M | -303M | -5M | -144M | 28M | -35M | 225M | 53M | 150M | 69M | -337M | 754M | -68M | 177M | 97M | 7M | -236M | 75M |
| Working Capital Changes | -194M | -271M | -111M | -1.1B | -813M | -165M | -428M | 313M | 602M | 418M | 153M | 94M | -223M | -282M | 331M | -140M | -147M | -112M | 355M | 420M | -1.25B | -66M | -401M | -313M | -120M | 241M | -2.46B | -256M | -39M | -19M | -107M |
| Change in Receivables | -586M | -244M | 68M | 108M | -194M | -287M | -340M | 133M | 71M | -7M | -108M | 77M | -49M | 16M | 311M | 112M | -231M | -364M | 865M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 207M | -277M | -528M | -1.24B | -847M | 45M | 46M | 216M | -282M | -167M | -99M | 93M | -53M | 26M | 5M | -17M | -304M | 177M | 43M | 11M | -248M | -25M | -272M | -194M | -39M | 482M | -372M | -211M | 74M | -34M | 245M |
| Change in Payables | 82M | 77M | 125M | -33M | 106M | 33M | 63M | -93M | -7M | 51M | 72M | -188M | -194M | -284M | 99M | -112M | 376M | 0 | -512M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -3.11B | -1.44B | -3.2B | -4.36B | -3.58B | -4.09B | -922M | -1.92B | -78M | -1.13B | -650M | -302M | -377M | -3M | -1.04B | -6.17B | -1.06B | -1.1B | -1.18B | 215M | 3.08B | -1.69B | -1.16B | -842M | -1.11B | -1.63B | -1.82B | -1.88B | -1.47B | -1.22B | -2.13B |
| Capital Expenditures | -3.31B | -4.55B | -4.82B | -5.07B | -2.8B | -2.46B | -649M | -847M | -1.13B | -695M | -531M | -551M | -385M | -412M | -495M | -816M | -1.2B | -753M | -763M | -686M | -1.27B | -1.33B | -1.3B | -800M | -802M | -1.79B | -2.76B | -1.37B | -1.03B | -1.24B | -2.06B |
| CapEx % of Revenue | 17.03% | 25.73% | 30.82% | 28.95% | 13.97% | 13.42% | 4.49% | 5.89% | 7.17% | 4.65% | 3.97% | 4.24% | 2.95% | 3.38% | 3.86% | 5.94% | 8.59% | 7.22% | 6.1% | 4.96% | 8.92% | 9.93% | 10.32% | 8.13% | 9.57% | 21.83% | 23.26% | 14.07% | 11.62% | 12.41% | 20.75% |
| Acquisitions | 0 | 0 | 0 | 0 | 3M | 2.46B | 649M | 847M | 1.13B | 40M | -1.06B | 0 | 0 | 412M | 0 | -5.42B | -199M | -155M | -19M | -87M | -205M | -19M | -8M | -128M | -69M | 0 | -3M | -469M | -152M | -16M | -313M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 849M | -8M | 147M | 27M | 37M | -2.45B | -681M | -785M | -1.15B | -12M | 1.06B | 124M | 149M | -345M | 0 | 16M | 148M | 0 | 0 | 61M | 2.98B | 47M | 0 | -22M | 0 | 0 | 107M | 0 | -580M | 2.01B | 70M |
| Cash from Financing | -4.95B | -5.69B | -2.88B | -2.14B | -6.72B | -3.14B | -4.55B | -4.73B | -6.33B | -3.73B | -3.81B | -4.17B | -3.94B | -3.17B | -1.95B | 2.59B | -2.63B | -1.41B | -2.43B | -4.48B | -5.57B | -3.54B | -1.15B | -439M | -379M | -491M | -368M | -64M | -302M | -610M | 863M |
| Debt Issued (Net) | 0 | 449M | 2.38B | 2.5B | 994M | 945M | 998M | 741M | 1B | 474M | -501M | -502M | -502M | -514M | 117M | 4.5B | 0 | 0 | 0 | -43M | -586M | 264M | -435M | -426M | -29M | -132M | -53M | 136M | -67M | -542M | 958M |
| Equity Issued (Net) | 214M | -1.08B | -412M | -30M | -3.37B | -150M | -2.08B | -2.42B | -4.73B | -2.07B | -1.66B | -2.35B | -2.28B | -1.55B | -1.28B | -1.28B | -2.05B | -845M | -1.91B | -4.13B | -4.88B | -3.69B | -561M | -127M | -203M | -212M | 87M | -248M | -102M | 65M | 35M |
| Dividends Paid | -5.11B | -5B | -4.79B | -4.56B | -4.3B | -3.89B | -3.43B | -3.01B | -2.56B | -2.1B | -1.65B | -1.44B | -1.32B | -1.18B | -819M | -644M | -592M | -567M | -537M | -425M | -199M | -173M | -154M | -147M | -147M | -147M | -141M | -134M | -133M | -131M | -129M |
| Share Repurchases | -707M | -1.48B | -929M | -293M | -3.62B | -527M | -2.55B | -2.96B | -5.1B | -2.56B | -2.13B | -2.74B | -2.83B | -2.87B | -1.8B | -1.97B | -2.45B | -954M | -2.12B | -4.89B | -5.3B | -4.15B | -753M | -284M | -370M | -395M | -155M | -473M | -256M | -86M | 0 |
| Other Financing | -47M | -62M | -53M | -57M | -41M | -46M | -36M | -42M | -47M | -31M | -3M | 126M | 159M | 73M | 28M | 19M | 13M | 1M | 19M | 116M | 100M | 59M | 0 | 261M | 0 | 0 | -261M | 182M | 0 | -2M | -1M |
| Net Change in Cash | 616M | 25M | 236M | -86M | -1.58B | 1.52B | 670M | -1M | 782M | 502M | 154M | -199M | -428M | 211M | 424M | -327M | 137M | 136M | -282M | 145M | -31M | -1.45B | 850M | 869M | 518M | -314M | -36M | 30M | -475M | 51M | -400M |
| Free Cash Flow | 5.36B | 2.6B | 1.5B | 1.35B | 5.92B | 6.29B | 5.49B | 5.8B | 6.06B | 4.67B | 4.08B | 3.72B | 3.51B | 2.97B | 2.92B | 2.44B | 2.62B | 1.89B | 2.57B | 3.72B | 1.19B | 2.44B | 1.85B | 1.35B | 1.19B | 29M | -577M | 656M | 220M | 678M | -1.18B |
| FCF Margin % | 27.53% | 14.72% | 9.58% | 7.7% | 29.57% | 34.31% | 37.96% | 40.34% | 38.38% | 31.2% | 30.54% | 28.59% | 26.88% | 24.35% | 22.76% | 17.76% | 18.77% | 18.13% | 20.53% | 26.89% | 8.33% | 18.23% | 14.69% | 13.74% | 14.2% | 0.35% | -4.86% | 6.72% | 2.48% | 6.8% | -11.86% |
| FCF Growth % | 256.29% | 73.77% | 11.05% | -77.22% | -5.89% | 14.64% | -5.38% | -4.23% | 29.78% | 14.33% | 9.85% | 5.99% | 18% | 1.82% | 19.63% | -6.91% | 38.68% | -26.37% | -30.99% | 213.13% | -51.35% | 32.14% | 36.79% | 13.53% | 4003.45% | 105.03% | -187.96% | 198.18% | -67.55% | 157.51% | -617.11% |
| FCF per Share | 5.82 | 2.85 | 1.63 | 1.47 | 6.40 | 6.72 | 5.88 | 6.09 | 6.12 | 4.61 | 4.00 | 3.56 | 3.25 | 2.67 | 2.55 | 2.08 | 2.16 | 1.49 | 1.94 | 2.57 | 0.76 | 1.46 | 1.05 | 0.68 | 0.69 | 0.02 | -0.32 | 0.38 | 0.12 | 0.43 | -0.78 |
| FCF Conversion (FCF/Net Income) | 0.88x | 1.43x | 1.32x | 0.99x | 1.00x | 1.13x | 1.10x | 1.33x | 1.29x | 1.46x | 1.28x | 1.43x | 1.38x | 1.59x | 1.94x | 1.48x | 1.18x | 1.80x | 1.73x | 1.66x | 0.57x | 1.62x | 1.69x | 1.80x | -5.79x | -9.05x | 0.71x | 1.62x | 2.77x | 1.04x | 14.03x |
| Interest Paid | 0 | 0 | 473M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 588M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TXN stock.
Texas Instruments Incorporated (TXN) generated $7.15B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Texas Instruments Incorporated (TXN) generated $2.60B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Texas Instruments Incorporated (TXN) spent $4.55B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Texas Instruments Incorporated (TXN) returned $5.00B to shareholders via cash dividends and spent $1.48B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Capex drag on FCF
Metrics are mathematically derived from official filings.
Earnings Quality Strengthens on Utilization
Operating cash flow reached $2.7B in 2026Q2, 1.37 times net income, according to the latest quarterly data, suggesting high earnings quality as utilization improves. This ratio has rebounded from 0.72 in 2025Q1.
The OCF/NI ratio has swung from below 1.0 in early 2025 to consistently above 1.3 in recent quarters, indicating that reported earnings are increasingly backed by cash generation. The improvement appears tied to better working capital management and higher fab utilization, which reduces the drag from inventory builds. Investors should monitor whether this ratio remains above 1.0 as the capex cycle matures.
Free Cash Flow Rebounding from Trough
Free cash flow turned positive at $2.2B in 2026Q2, a sharp recovery from negative FCF in 2025Q1, as reported in the cash flow statement. FCF margin expanded to 40.1% from -6.7% a year earlier.
The FCF trajectory shows a clear V-shaped recovery, driven by revenue growth and moderating capex intensity. However, the absolute FCF remains below the levels seen before the capex surge, and the forward guidance suggests potential revenue normalization. The sustainability of this rebound depends on whether the industrial and automotive demand continues to absorb the new capacity.
Capex Intensity Eases but Remains Elevated
Capital expenditures declined to $514M in 2026Q2, down from a peak of $1.3B in 2025Q2, according to the cash flow data. Capex as a percentage of revenue fell to 9.4% from 29.3% a year ago.
The sharp reduction in capex suggests that the peak of the fab construction cycle may be passing, but the cumulative investment remains substantial. The company's high fixed-cost model means that depreciation will continue to rise as new fabs come online, potentially pressuring margins if utilization does not keep pace. The recent capex appears to be a mix of growth and maintenance, with the growth component tied to the Sherman and Lehi fabs.
Working Capital Volatility Reflects Inventory Strategy
Working capital changes swung from -$691M in 2026Q1 to +$49M in 2026Q2, as per the cash flow statement, indicating significant quarter-to-quarter variability. This volatility appears tied to intentional inventory builds and distributor dynamics.
The large negative working capital changes in early 2025 and 2026Q1 suggest aggressive inventory accumulation, consistent with the company's strategy of maintaining high days of inventory. The positive swing in 2026Q2 may indicate that inventory levels are stabilizing or being drawn down. Investors should watch for any sudden liquidation, which could signal demand weakness.
Dividends Outpace Buybacks Amid Capex Surge
Dividends paid totaled $1.3B in 2026Q2, while buybacks were only $27M, according to the cash flow statement, showing a clear shift toward shareholder income. This contrasts with the $653M buybacks in 2025Q1.
The dramatic reduction in buybacks suggests that management is prioritizing dividend stability and internal investment over share repurchases. This is a notable departure from the historical pattern of aggressive buybacks, and it may indicate that free cash flow is being conserved for the fab expansion. The dividend appears well-covered by operating cash flow, but the sustainability of the payout ratio warrants monitoring if FCF remains suppressed.
Cash Flow Obscures Capitalized Expansion Costs
Stock-based compensation added $127M in 2026Q2, while depreciation and amortization reached $568M, as reported in the cash flow statement. These non-cash items mask the true cash cost of the fab expansion.
The cash flow statement treats capex as an investing outflow, but the depreciation of new fabs will be spread over many years, potentially understating the near-term economic cost of the expansion. Additionally, SBC is added back to operating cash flow, which may overstate the cash generation available to shareholders. The CHIPS Act incentives could also create deferred tax benefits that flatter net income without corresponding cash inflows.