Texas Instruments Incorporated · NASDAQ:TXN
Texas Instruments — Investor Presentation (February 2026)
36 slides from Texas Instruments's investor presentation, Feb 24, 2026
Slide 1: Capital management
Capital management Haviv Ilan, chairman, president and chief executive officer Rafael Lizardi, senior vice president, chief financial officer Mike Beckman, vice president, head of investor relations February 24, 2026, 10 a.m. Central time 1
Slide 2: Agenda for this call
Agenda for this call Introduction • Executive summary • Our objective and strategy • Business model built on sustainable competitive advantages Capital management scorecard and update Historical view of our capital allocation Insight into our markets and growth expectations Strengthening our sustain
Slide 3: Executive summary
Executive summary (from Investor Overview on TI.com) At Texas Instruments: • We run the company with the mindset of being a long-term owner. • We believe that growth of free cash flow per share is the primary driver of long-term value. • Our ambitions and values are integral to how we build TI stron
Slide 4: Our company objective and strategy
Our company objective and strategy Objective: Maximize long-term growth of free cash flow per share Strategy: 1. Great business model focused on analog and embedded products and built around four sustainable competitive advantages 2. Discipline in allocating capital to the best opportunities 3. Effi
Slide 5: Building competitive advantages unique to TI
Building competitive advantages unique to TI Business model built on competitive advantages What we get (tangible benefit) Less single point dependency and Diversity longer returns on our investments and longevity Access to more customers, projects, Reach of market channels sockets per project, and
Slide 6: Capital management scorecard 2025
Capital management scorecard 2025 Metric Long-term objective Target Result Free cash flow generation Maximize long-term growth of free cash flow per share. 25-35% of revenue (TTM) 17% of revenue 2023-2025: ~$5B per year Invest to support new technology development and revenue growth. Extend our low-
Slide 7: Capital management scorecard 2026
Capital management scorecard 2026 Metric Long-term objective Target Free cash flow generation Maximize long-term growth of free cash flow per share. 25% to 35% of revenue (TTM) Invest to support new technology development and revenue growth. Extend our low- 2026: ~$2B to $3B Capital expenditures (gr
Slide 8: Where and why we've allocated our capital
Where and why we’ve allocated our capital Capital allocated: $109B Purpose (2016-2025) R&D, Sales/Marketing, CapEx, Inventory Organic growth of business Dividends Appeal to broader set of investors Share Repurchases Accretive capture of future free cash flow for long-term investors Acquisitions Inor
Slide 9: Insight into our growth expectations
Insight into our growth expectations 9
Slide 10: Semiconductor cycle: current market environment
Semiconductor cycle: current market environment Semiconductor market units shipped* 160 140 Units (B) TTM monthly average 120 • Market recovery is continuing 100 • Recovery is at a more modest pace compared to previous 80 upturns 60 • Secular content growth 40 continues, and our confidence 20 in the
Slide 11: Aligning our markets with our strategy
Aligning our markets with our strategy Previous segmentation Updated segmentation (2025 revenue) (2025 revenue) • We reorganized our end markets Comms equipment 5% Comms equipment 3% to better reflect the growth opportunities for our analog and Personal electronics 20% Personal electronics 21% embed
Slide 12: Advancing technologies in high growth markets
Advancing technologies in high growth markets TI product portfolio addresses an increasing number of sockets across all sectors Automotive Industrial Data center 2025 TI revenue: ~$5.8B 2025 TI revenue: ~$5.8B 2025 TI revenue: ~$1.5B Advanced driver assistance systems (ADAS) Industrial automation ❖
Slide 13: In summary: TI is positioned to grow
In summary: TI is positioned to grow • Market exposure: Industrial, automotive and data center have grown from about 43% in 2013 to about 75% of TI’s revenue in 2025 • Stronger portfolio of products: Breadth of analog and embedded products, combined with investments in process and package technologi
Slide 14: Strengthening our sustainable competitive advantages
Strengthening our sustainable competitive advantages 14
Slide 15: Investing to support growth for the long term
Business model built on competitive advantages Diversity and longevity Investing to support Reach of market growth for the long term channels Extending our 300mm cost Broad portfolio of analog and embedded products advantage and greater control Manufacturing and technology of our supply chain 15
Slide 16: Benefits of owning & controlling our supply chain
Benefits of owning & controlling our supply chain Support for Control of Optimal Structural cost growth our supply technology advantage Investments in >90% of wafers, 28nm to 130nm 300mm provides manufacturing assembly and process technology ~40% lower cost capacity will test will be optimized for a
Slide 17: Chip cost is ~40% less on 300mm
Chip cost is ~40% less on 300mm Illustration of the GPM impact from 300mm Built on Built on 200mm 300mm wafer wafer Sales price of example part $1.00 $1.00 Cost of goods: Chip cost $0.20 $0.12 Assembly, $0.20 $0.20 test, other Total $0.40 $0.32 Gross margin % 60% 68% *Unpackaged 17
Slide 18: Executed 300mm capacity to support growth
Executed 300mm capacity to support growth Delivered on time, on budget, with high levels of efficiency Phase 1 (2021-2026) Phase 2 (2022-2026) Phase 3 (2026+) Transfers & incremental growth New fab preparation Modular capacity • Equip RFAB2 and execute 150mm fab • LFAB2 cleanroom ready for first pro
Slide 19: Executed 300mm capacity to support growth
Executed 300mm capacity to support growth Delivered on time, on budget, with high levels of efficiency Phase 1 (2021-2026) Phase 2 (2022-2026) Phase 3 (2026+) Transfers & incremental growth New fab preparation Modular capacity • Equip RFAB2 and execute 150mm fab • LFAB2 cleanroom ready for first pro
Slide 20: Our newest 300mm wafer fabs
Our newest 300mm wafer fabs Richardson, Texas (RFAB) Lehi, Utah (LFAB) Sherman, Texas (SM) SM2 LFAB2 SM1 LFAB1 LFAB1 LFAB2 • Capacity supporting transfers from 150mm, • LFAB1 supports external foundry transfers, • SM1 cleanroom and pilot line complete; as well as new devices and technologies includi
Slide 21: Scalability of capital expenditures
Scalability of capital expenditures Supports long-term growth Estimated capital expenditures (gross*) • 300mm new fab $6 Elevated CapEx expansions on track to $5 be complete in 2026 $4 • CapEx modularity Billions $3 supports manufacturing $2 ramps aligned with customer demand $1 $0 • 2027+ CapEx dep
Slide 22: R&D investments
Business model built on competitive advantages Diversity R&D investments: and longevity Reach of market Strengthening our technology channels and our product portfolio, Broad portfolio of analog while improving our diversity and embedded products and longevity Manufacturing and technology 22
Slide 23: Disciplined allocation of R&D strengthens portfolio
Disciplined allocation of R&D strengthens portfolio % of TI revenue* Market segment R&D investments 2013 2024 2025 Industrial Up broadly 28% 33% 33% Automotive Up broadly 12% 35% 33% Data center Up broadly 3% 6% 9% Personal electronics Steady 37% 22% 21% Communications equipment Steady 15% 3% 3% * C
Slide 24: Disciplined allocation of R&D strengthens portfolio
Disciplined allocation of R&D strengthens portfolio % of TI revenue* Market segment R&D investments 2013 2024 2025 Industrial Up broadly 28% 43% 33% 33% 75% Automotive Up broadly 12% 35% 33% Data center Up broadly 3% 6% 9% Personal electronics Steady 37% 22% 21% Communications equipment Steady 15% 3
Slide 25: Free cash flow per share growth and cash returns
Free cash flow per share growth and cash returns 25
Slide 26: Operating cash flows enable long-term investments
Operating cash flows enable long-term investments $10 50% $9 45% • Operating cash flow at $8 40% $7.2 billion in 2025 $7 35% $6 30% • Including $300 million of inventory growth Billions $5 25% $4 20% • CapEx at $4.6 billion, $3 15% 26% of revenue $2 10% • Reducing CapEx as we $1 5% near completion o
Slide 27: Delivering free cash flow per share growth
Delivering free cash flow per share growth TXN free cash flow per share $25 • Free cash flow per share 2004-2022 FCF/share trendline Elevated beginning to approach CapEx $20 trendline in 2026 as growth returns and CapEx begins $15 to moderate • On track to deliver more $10 than $8 of free cash flow
Slide 28: Sustainability and growth of dividends
Sustainability and growth of dividends TXN dividend per share $5.50 $5.68 $5.26 $5.02 $4.69 $4.21 $3.72 $3.21 $2.63 $2.12 $1.64 $1.40 $1.07 $1.24 $0.41 $0.45 $0.49 $0.56 $0.72 $0.09 $0.11 $0.13 $0.30 • Increased dividend 22 consecutive years, including 4% increase to $1.42 per share in Q4 2025 • ~8%
Slide 29: Accretive capture of future free cash flow for long-term investors
Accretive capture of future free cash flow for long-term investors 1.8 47% reduction in shares outstanding Basic shares EoP (Billions) 1.5 1.2 0.9 0.6 0.3 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 • Repurchase steadily when disc
Slide 30: Strong return of cash continues
Strong return of cash continues TXN cash returned per share $10 $9 Repurchases paid per share 2025 return of $7.13 per Dividends paid per share share: $8 $7 • +14% versus 2024 $6 • Returned 130% $5 free cash flow in last $4 ten years $3 $2 • 13% compound annual growth 2004-2025 $1 $0 30
Slide 31: How TXN ranks on cash generation and returns
How TXN ranks on cash generation and returns Free cash flow as % of Cash returns as % of Return on invested revenue, S&P 500 revenue, S&P 500 capital, S&P 500 50% TI 87th percentile 60% 40% operating cash flow 40% 50% TI 94th percentile 30% 30% 40% TI 52nd percentile 20% 30% 20% TI 70th percentile 1
Slide 32: Summary
Summary (from Investor Overview on TI.com) • As engineers, it’s a privilege to get to pursue our passion of creating a better world by making electronics more affordable through semiconductors. • We were fortunate that our founders had the foresight to know that passion alone was not enough. Buildin
Slide 33: Texas Instruments
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Slide 34: Risk factors and non-GAAP measures
Risk factors and non-GAAP measures This presentation is a statement of management’s intentions and describes a strategy that TI intends to pursue as management, in its judgment, deems appropriate. The application of this strategy during any given period may vary depending on market conditions and ot
Slide 35: Transaction details
Transaction details On February 4, 2026, Texas Instruments Incorporated (“Texas Instruments”) and Silicon Laboratories Inc. (“Silicon Labs”) announced the entry into a definitive agreement under which Texas Instruments will acquire Silicon Labs for $231.00 per share in an all-cash transaction, repre
Slide 36: No Offer or Solicitation
No Offer or Solicitation This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer,
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