On July 23, 2025, Texas Instruments (TI), a global leader in analog and embedded processing chips, announced its Q2 financial results—surpassing market expectations amid pricing adjustments and demand spikes.

Financial Highlights

• Revenue: $4.45 billion (+16% YoY)

• Net Profit: $1.3 billion (+15% YoY)

• Gross Margin: 58%

• EPS and revenue both beat Wall Street expectations.

Business Segment Performance

• Analog Products: $3.5 billion (+18% YoY) — the company’s largest segment

• Embedded Processing: +10% YoY

• Other Segments: +14% YoY

By End Market

• Industrial: >15% YoY growth

• Automotive: Mid-single digit YoY growth; slight QoQ decline

• Personal Electronics: ~+25% YoY

• Enterprise Systems: +40% YoY

• Communications Equipment: >+50% YoY

Notably, China led the surge, with Q2 sales rising 32% YoY, particularly in the industrial sector.

Inventory & Supply Chain

• Inventory Value: $4.8 billion

• Days of Inventory: 231 days (down by 9 days QoQ)
  CEO Haviv Ilan noted that some customers pulled in demand in anticipation of new tariffs, especially in China, driving a temporary demand spike that is expected to normalize in Q3.

Pricing Actions

In Q2, TI implemented broad-based price increases covering over 3,300 part numbers.

• Price hike distribution:

• ≥100%: 9%

• 50–100%: 5%

• 30–50%: 1%

• 15–30%: 55%

• <15%: 30%

Key impacted categories:

• ADC/Op-Amps (Signal Chain): Hikes ≥100%

• Isolation, LDOs, DC-DC converters: ~20% hike (rebounding from previous cuts)

These pricing adjustments reflect tightening supply, rising costs, and strategic repositioning.

Capacity Expansion Plans

In June, TI announced a $60 billion+ investment to build and expand seven fabs across Texas and Utah. This move aims to strengthen domestic manufacturing and buffer against growing Chinese semiconductor competition.

Q3 2025 Outlook

• Revenue guidance: $4.45B–$4.8B (midpoint: $4.625B)

• While in line with expectations, Ilan maintained a cautious tone, citing a return to cyclical norms after Q2’s tariff-driven spike.

“We saw accelerated demand in early Q2, especially from China. But Q3 will be more normalized,” said CEO Ilan.

What This Means for Distributors & OEMs

• Expect tighter supply and higher lead times on key analog components.

• Price increases are real—plan ahead for BOM cost changes.

• China-based buyers may face added scrutiny on tariff-related sourcing.

• Now is the time to secure supply contracts and consider alternative sources if cost control is critical.

Need help sourcing TI components or managing BOM changes?
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