Free cash flow margins remain volatile, swinging from -6.7% in 2025Q1 to 30.0% in 2025Q4, as the firm continues to prioritize $1.3 billion in quarterly dividend payments despite high capital intensity.
| 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 | 7.82B | 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 % | 136.69% | 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 | 5.37B | 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 | 2.14B | 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 | 412M | 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 | 64M | -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 | 82M | 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 | -238M | -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 | -385M | -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 | -8M | -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 | 73M | 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 | -2.74B | -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 | -4.1B | -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 | 22.25% | 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 | 297M | -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 | -4.3B | -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) | 1.2B | 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) | -391M | -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 | -5.05B | -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 | -982M | -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 | -55M | -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 | 786M | 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 | 3.72B | 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 % | 20.18% | 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 % | 155.74% | 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 | 4.07 | 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) | 0.69x | 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 |
Capital intensity margin drag
As reported in recent financial statements, TXN's operating cash flow to net income ratio fluctuated significantly, reaching a low of 0.72 in 2025Q1 before recovering to 0.98 in 2026Q1, which highlights the inherent volatility in converting accounting profits into actual cash during periods of heavy inventory adjustment.
The divergence between net income and operating cash flow suggests that accrual-based accounting may temporarily mask the cash-generative reality of the business during cyclical downturns. Investors should monitor whether the recent convergence toward a 1:1 ratio indicates a sustainable improvement in working capital efficiency or merely a temporary stabilization of inventory levels.
Based on the provided cash flow data, TXN's free cash flow margins have experienced extreme variance, swinging from a negative 6.7% in 2025Q1 to a robust 30.0% by 2025Q4, reflecting the heavy impact of aggressive capital expenditure cycles on the company's short-term cash generation capabilities.
The erratic trajectory of free cash flow appears to be a direct consequence of the company's decision to prioritize long-term capacity expansion over immediate cash preservation. This suggests that the firm's cash flow profile will remain sensitive to the timing of fab construction milestones rather than purely operational performance.
According to quarterly filings, TXN's capital expenditure as a percentage of revenue peaked at 34.1% in 2024Q1, underscoring a massive, multi-year investment phase that significantly exceeds historical maintenance levels and places a substantial, ongoing burden on the company's ability to generate surplus cash for shareholders.
The elevated capital intensity suggests that management is betting heavily on future demand for 300mm analog capacity, effectively trading current liquidity for long-term structural cost advantages. Analysts should evaluate whether the depreciation of these new assets will create a permanent drag on future earnings or if the scale benefits will eventually justify the current cash outflow.
Data from recent periods indicates that working capital changes have been a significant source of cash flow volatility, with a notable $724 million outflow in 2025Q1 followed by a $235 million inflow in 2025Q4, suggesting that inventory management remains a primary lever for balancing supply and demand.
The frequent swings in working capital suggest that the company is actively using its balance sheet to buffer against industrial demand fluctuations. This strategy appears to prioritize supply chain reliability, but it also introduces significant quarterly noise that can obscure the underlying operational cash flow trends.
As evidenced by the cash flow statements, TXN has consistently prioritized dividend payments, maintaining a steady outflow of approximately $1.2 billion to $1.3 billion per quarter, even during periods where free cash flow turned negative, which demonstrates a strong commitment to returning capital to shareholders.
The persistence of dividend payments despite negative free cash flow in certain quarters suggests a high degree of confidence in the company's long-term liquidity position. However, investors should monitor whether the combination of high capex and sustained dividends may eventually necessitate a more conservative approach to share repurchases if the current industrial cycle remains soft.
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.