Operating Profit Margin
since 2005
Calculation
Texas Instruments Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 34.06% | = | 100 | × | 6,023) | ÷ | 17,682) |
| Dec 31, 2024 | 34.94% | = | 100 | × | 5,465) | ÷ | 15,641) |
| Dec 31, 2023 | 41.85% | = | 100 | × | 7,331) | ÷ | 17,519) |
| Dec 31, 2022 | 50.63% | = | 100 | × | 10,140) | ÷ | 20,028) |
| Dec 31, 2021 | 48.84% | = | 100 | × | 8,960) | ÷ | 18,344) |
| Dec 31, 2020 | 40.76% | = | 100 | × | 5,894) | ÷ | 14,461) |
| Dec 31, 2019 | 39.79% | = | 100 | × | 5,723) | ÷ | 14,383) |
| Dec 31, 2018 | 42.53% | = | 100 | × | 6,713) | ÷ | 15,784) |
| Dec 31, 2017 | 40.66% | = | 100 | × | 6,083) | ÷ | 14,961) |
| Dec 31, 2016 | 35.89% | = | 100 | × | 4,799) | ÷ | 13,370) |
| Dec 31, 2015 | 32.88% | = | 100 | × | 4,274) | ÷ | 13,000) |
| Dec 31, 2014 | 30.26% | = | 100 | × | 3,947) | ÷ | 13,045) |
| Dec 31, 2013 | 23.20% | = | 100 | × | 2,832) | ÷ | 12,205) |
| Dec 31, 2012 | 15.38% | = | 100 | × | 1,973) | ÷ | 12,825) |
| Dec 31, 2011 | 21.78% | = | 100 | × | 2,992) | ÷ | 13,735) |
| Dec 31, 2010 | 32.32% | = | 100 | × | 4,514) | ÷ | 13,966) |
| Dec 31, 2009 | 19.09% | = | 100 | × | 1,991) | ÷ | 10,427) |
| Dec 31, 2008 | 19.49% | = | 100 | × | 2,437) | ÷ | 12,501) |
| Dec 31, 2007 | 25.28% | = | 100 | × | 3,497) | ÷ | 13,835) |
| Dec 31, 2006 | 23.62% | = | 100 | × | 3,367) | ÷ | 14,255) |
| Dec 31, 2005 | 20.84% | = | 100 | × | 2,791) | ÷ | 13,392) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The operating profit margin exhibited significant fluctuations between 2005 and 2025. Initially, the metric demonstrated a generally increasing trend, followed by periods of volatility and subsequent strong growth, culminating in a recent decline.
- Initial Growth & Volatility (2005-2009)
- From 2005 to 2007, the operating profit margin increased consistently, rising from 20.84% to a peak of 25.28%. A subsequent decline was observed in 2008 and 2009, falling to 19.09%, likely influenced by broader economic conditions. This period indicates sensitivity to external factors.
- Significant Expansion (2010-2018)
- A substantial increase in operating profit margin occurred between 2010 and 2018. The margin more than doubled from 19.09% in 2009 to 42.53% in 2018. This expansion suggests improved operational efficiency, pricing power, or a shift towards higher-margin products. The peak in 2018 represents the highest margin achieved during the analyzed period.
- Recent Decline (2019-2025)
- Following the peak in 2018, the operating profit margin experienced a decline. While remaining relatively high in 2019 at 39.79% and 2020 at 40.76%, it increased sharply in 2021 to 48.84% and 2022 to 50.63%. However, a more pronounced decrease was observed in 2023 and 2024, falling to 41.85% and 34.94% respectively, and continued to 34.06% in 2025. This recent trend suggests increasing cost pressures, decreased pricing power, or a change in product mix.
- Correlation with Revenue
- While not the primary focus, a review of revenue alongside the operating profit margin reveals a complex relationship. Revenue did not consistently increase alongside the margin, particularly during the period of significant margin expansion (2010-2018). This suggests that margin improvements were not solely driven by increased sales volume, but rather by factors affecting profitability per unit sold.
In summary, the operating profit margin demonstrated a dynamic pattern over the analyzed period. The company experienced substantial margin growth, particularly between 2010 and 2018, but more recently has faced headwinds resulting in a declining trend. Further investigation into the underlying drivers of these fluctuations is warranted.
Comparison to Competitors
Texas Instruments Inc., operating profit margin, long-term trends, comparison to competitors
| Texas Instruments Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 34.06% | 10.66% | 26.61% | 29.22% | 39.89% | -4.19% | 32.01% | 26.14% | 62.42% | 27.90% |
| Dec 31, 2024 | 34.94% | 7.37% | 21.56% | 28.95% | 26.10% | -21.99% | 28.61% | 5.19% | 54.12% | 25.85% |
| Dec 31, 2023 | 41.85% | 1.77% | 31.07% | 28.86% | 45.25% | 0.17% | 29.69% | -36.97% | 15.66% | 21.74% |
| Dec 31, 2022 | 50.63% | 5.36% | 27.29% | 30.20% | 42.84% | 3.70% | 31.24% | 31.54% | 37.31% | 35.88% |
| Dec 31, 2021 | 48.84% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | 22.68% | 27.18% | 29.16% |
| Dec 31, 2020 | 40.76% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | 14.01% | 26.07% | 26.58% |
| Dec 31, 2019 | 39.79% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 31.51% | 32.47% | 31.59% |
| Dec 31, 2018 | 42.53% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 49.34% | 33.05% | 3.26% |
| Dec 31, 2017 | 40.66% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 28.88% | 27.99% | 11.73% |
| Dec 31, 2016 | 35.89% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | 1.35% | 14.91% | 27.57% |
| Dec 31, 2015 | 32.88% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 18.52% | 16.21% | 22.85% |
| Dec 31, 2014 | 30.26% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 18.87% | 12.01% | 28.50% |
| Dec 31, 2013 | 23.20% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 2.60% | 15.15% | 29.08% |
| Dec 31, 2012 | 15.38% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | -7.51% | 16.22% | 29.72% |
| Dec 31, 2011 | 21.78% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 8.59% | 7.22% | 33.60% |
| Dec 31, 2010 | 32.32% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 18.73% | -2.97% | 29.87% |
| Dec 31, 2009 | 19.09% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | -34.87% | -2.06% | 21.37% |
| Dec 31, 2008 | 19.49% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -27.31% | 20.41% | 33.48% |
| Dec 31, 2007 | 25.28% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | -4.92% | 14.78% | 32.50% |
| Dec 31, 2006 | 23.62% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 6.64% | 14.32% | 35.74% |
| Dec 31, 2005 | 20.84% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 4.46% | 5.65% | 42.06% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).