Texas Instruments Incorporated stock research
FY2025 Q2
Texas Instruments (TXN) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved sequentially and was stable relative to the year-ago period, indicating that the relationship between revenue and cost of revenue remained generally consistent year-over-year while strengthening in the near term.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved sequentially and was stable relative to the year-ago period, indicating that the relationship between revenue and cost of revenue remained generally consistent year-over-year while strengthening in the near term.
- The sequential improvement in gross margin, from the prior quarter to the current quarter, was driven by revenue growing at a faster rate than cost of revenue. The year-over-year gross margin remained essentially unchanged, reflecting a proportional alignment between revenue and cost growth over the longer term.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.9%
Gross profit
$2.6B
Revenue
$4.4B
Cost of revenue
$1.9B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+0.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $4.2B | $2.5B | $1.7B | 59.6% |
| Dec 31, 2024 | $4.0B | $2.3B | $1.7B | 57.7% |
| Mar 31, 2025 | $4.1B | $2.3B | $1.8B | 56.8% |
| Jun 30, 2025 | $4.4B | $2.6B | $1.9B | 57.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.0 pts
Year-over-year change
Jun 30, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin, from the prior quarter to the current quarter, was driven by revenue growing at a faster rate than cost of revenue. The year-over-year gross margin remained essentially unchanged, reflecting a proportional alignment between revenue and cost growth over the longer term.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was stable.
Monitor whether revenue growth continues to outpace cost of revenue growth, as this dynamic has been central to the gross margin trend.