TEXAS INSTRUMENTS (TXN) Company Report

Texas Instruments will acquire Silicon Labs for $231 per share in cash, funded with cash on hand and approximately $7 billion of incremental debt, with the transaction expected to close in 1H 2027 pending regulatory and shareholder approvals.
The deal adds 1,200 embedded wireless connectivity products, bolstering TI’s portfolio; Silicon Labs has delivered ~15% revenue CAGR since 2014 and holds a strong industrial and diversified customer base.
TI expects to generate over $450 million of annual manufacturing and operational synergies within three years post-close, primarily from COGS efficiencies, and anticipates the acquisition to be EPS-accretive in the first full year, excluding transaction costs.
Silicon Labs’ manufacturing will transition into TI’s 300 mm wafer fabs and internal assembly/test facilities, with TI’s 28 nm process optimized for wireless solutions, targeting internalization of about 75% of Silicon Labs’ revenue by 2030.

2 days ago

Transcript

Texas Instruments to acquire Silicon Labs

TXN

M&A

TI will acquire Silicon Labs for $231 per share in cash, funding the deal with cash on hand and ~$7 billion of incremental debt, while maintaining its 100% free cash flow return policy.
Transaction expands TI’s embedded wireless connectivity portfolio by 1,200 products, building on Silicon Labs’ 15% revenue CAGR since 2014 and leveraging TI’s low-cost manufacturing footprint.
Deal expected to deliver >$450 million in annual manufacturing and operational synergies within three years post-close and be EPS accretive in the first full year.
Closing anticipated in 1H 2027, subject to customary regulatory and Silicon Labs shareholder approvals.

2 days ago

Transcript

Texas Instruments to acquire Silicon Labs

TXN

M&A

Texas Instruments agreed to acquire Silicon Labs at $231 per share in cash for an implied $7.5 billion enterprise value.
The transaction is expected to be accretive to EPS in the first full year and deliver $450 million of annual synergies within three years post-close.
Financing will combine balance sheet cash and investment-grade debt, with TI committed to maintaining its current credit rating and returning 100% of free cash flow via dividends and share repurchases.
Closing is anticipated in the first half of 2027, subject to Silicon Labs shareholder approval and customary regulatory conditions.

2 days ago

Presentation

Texas Instruments to acquire Silicon Labs for $231 per share

TXN

M&A

Texas Instruments will acquire Silicon Labs for $231 per share in cash, with the transaction expected to close in the first half of 2027; funding will come from cash on hand and new debt.
The acquisition adds 1,200 products to TI’s portfolio, enhancing its leadership in embedded wireless connectivity by combining Silicon Labs’ wireless IP and TI’s manufacturing and market channels.
TI anticipates generating over $450 million in annual manufacturing and operational synergies within three years post-close, and expects the deal to be accretive to EPS, excluding transaction-related costs, in the first full year after closing.
The deal leverages TI’s 300 mm wafer fabs and in-house assembly and test capabilities to internalize Silicon Labs’ production, ensuring dependable, low-cost supply at scale.

2 days ago

Transcript

Texas Instruments to acquire Silicon Labs

TXN

M&A

Texas Instruments will acquire Silicon Labs for $231 per share in cash, implying an enterprise value of $7.5 billion.
The transaction is expected to be EPS accretive in the first full year post-close (excluding transaction-related costs) and generate >$450 million of annual manufacturing and operational synergies within three years.
The deal expands TI’s embedded wireless connectivity portfolio by adding ~1,200 products and leverages TI’s industry-leading, low-cost manufacturing capacity to serve customers at scale.
Financing will come from a combination of cash on hand and debt, with closing anticipated in 1H 2027, subject to regulatory and shareholder approvals.

2 days ago

8-K

Texas Instruments to acquire Silicon Labs

TXN

M&A

Texas Instruments will acquire Silicon Labs for $231 per share in cash, representing an enterprise value of $7.5 billion.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals and stockholder consent.
The deal is projected to generate $450 million of annual manufacturing and operational synergies within three years post-close.
The acquisition is anticipated to be accretive to Texas Instruments’ earnings per share, excluding transaction-related costs, in the first full year after closing.

3 days ago

Press Release

Texas Instruments Q1 revenue outlook prompts analyst target increases

TXN

Guidance Update

Texas Instruments guided approximately $4.5 billion in Q1 revenue, surpassing Street expectations.
BofA upgraded to Neutral and raised its price target to $235, while TD Cowen lifted its target to $240, highlighting an implied Q1 gross margin near 57% and strong datacenter sales growth.
Jefferies (target $210), J.P. Morgan ($227) and Stifel ($215) also raised targets, bringing the one-year average price target to $199 amid improving demand.
Bank of America increased pro forma earnings forecasts to $6.23 for fiscal 2026 and $7.12 for fiscal 2027.

Jan 28, 2026, 12:31 PM

CNBC

Texas Instruments guides Q1 revenue and EPS above estimates

TXN

Guidance Update

Share Buyback

Revenue Acceleration/Inflection

Guided Q1 revenue of $4.32 billion–$4.68 billion and EPS of $1.22–$1.48, topping Wall Street consensus
Reported Q4 revenue of $4.42 billion and EPS of $1.27 (included a $0.06 charge), slightly below expectations
Returned $6.5 billion to shareholders over the past year; posted FY 2025 revenue of $17.68 billion; Q4 analog sales +14% to $3.62 billion; embedded-processing revenue +8% to $662 million
Shares surged 9% in after-hours trading on the upbeat guidance

Jan 27, 2026, 10:58 PM

Bloomberg

Texas Instruments reports Q4 2025 results

TXN

Earnings

Guidance Update

Dividends

Q4 revenue was $4.4 billion, down 7% sequentially and up 10% year-over-year; Analog revenue grew 14% YoY, Embedded Processing 8%, and Other declined YoY.
Q4 end-market performance: Industrial up high-teens%, Automotive up upper-single-digits%, Data Center up 70%, Personal Electronics down upper-teens%, Communications Equipment down low-single-digits% year-over-year.
Q4 gross profit was $2.5 billion (56% margin), operating profit $1.5 billion (33% margin), net income $1.2 billion, and EPS $1.27 (including a $0.06 goodwill impairment).
Capital deployment in Q4 included $2.3 billion of operating cash flow, $925 million of CapEx, $1.3 billion of dividends (4% increase to $1.42/sh), and $403 million of share repurchases; ended quarter with $4.9 billion in cash and $14 billion of debt.
Q1 2026 guidance: revenue of $4.32–$4.68 billion, EPS of $1.22–$1.48, and an expected 2026 tax rate of 13–14%.

Jan 27, 2026, 9:30 PM

Transcript

Texas Instruments reports Q4 2025 results

TXN

Earnings

Guidance Update

Q4 revenue was $4.4 billion, down 7% sequentially and up 10% year-over-year; Analog grew 14% and Embedded Processing grew 8% YoY.
2025 revenue by end market: Industrial $5.8 billion (+12%, 33% of sales), Automotive $5.8 billion (+6%, 33%), Data center $1.5 billion (+64%, 9%), Personal electronics $3.7 billion (+7%, 21%), Communications equipment ~$0.5 billion (+20%, 3%).
Q4 gross margin was 56%, operating margin 33%, net income $1.2 billion ($1.27 EPS); 2025 free cash flow was $2.9 billion (17% of revenue).
Q1 2026 guidance: revenue $4.32–4.68 billion, EPS $1.22–1.48, with an expected full-year tax rate of about 13–14%.
In Q4 TI generated $2.3 billion of operating cash flow, spent $925 million on CapEx, returned $1.7 billion to shareholders via dividends and buybacks, and ended the quarter with cash/short-term investments of $4.9 billion against $14 billion of debt.