Texas Instruments Incorporated stock research
FY2025 Q3
Texas Instruments (TXN) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, gross margin declined slightly from the prior quarter and more notably from a year ago, as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, gross margin declined slightly from the prior quarter and more notably from a year ago, as cost of revenue grew faster than revenue.
- The gross margin weakened sequentially and year-over-year, despite higher revenue. The cost of revenue increased at a faster rate than revenue, contributing to the lower margin.
- Compared to the prior quarter, gross margin was lower; compared to the same quarter last year, it was also lower. Gross profit dollars were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.4%
Gross profit
$2.7B
Revenue
$4.7B
Cost of revenue
$2.0B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-2.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $4.7B | $2.7B | $2.0B | 57.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.5 pts
Year-over-year change
Sep 30, 2024
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year, despite higher revenue. The cost of revenue increased at a faster rate than revenue, contributing to the lower margin.
Compared to the prior quarter, gross margin was lower; compared to the same quarter last year, it was also lower. Gross profit dollars were higher in both comparisons.
Monitor the trend in gross margin, as it declined while revenue grew, which could signal increasing cost pressures.