Texas Instruments Incorporated

Welcome to the Texas Instruments first quarter 2025 earnings conference call. I'm Dave Paul, and I'm joined by our Chief Executive Officer, Javier Villan, and our Chief Financial Officer, Rafael Lizardi. In addition, Mike Beckman has joined us. As you may know, I will be retiring, and Mike will replace me as Vice President of Investor Relations. Mike has worked at TI for nearly two decades and has worked directly with me in investor relations for five years. Mike will moderate today's call. And with that, let me turn it over to Mike.

Thanks, Dave. I'm looking forward to the opportunity. For any of you who missed the release, you can find it on our website at ti.com slash IR. This call is being broadcast live over the web and can be accessed through our website. In addition, today's call is being recorded and will be available via replay on our website. This call will include forward-looking statements that involve risks and uncertainties that could cause TI's results to differ materially from management's current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today, as well as TI's most recent SEC filings for more complete description. Today, we'll provide the following updates. First, Haviv will start with a quick overview of the quarter, including insight into first quarter revenue results and some details of what we're seeing with respect to our end markets. Next, he'll share how we are approaching the overall market environment and provide guidance for second quarter 2025. Lastly, Rafael will cover the financial results and give an update on capital management. With that, let me turn it over to Haviv.

Thanks, Mike. Let me start with a quick overview of the first quarter. Revenue came in at $4.1 billion, an increase of 2% sequentially, and an increase of 11% year-over-year. Analog revenue grew 13% year-over-year, and embedded processing was about flat. And both segments grew sequentially. Our other segment grew 23% from the year-ago quarter. Now, I'll provide some insight into our first quarter revenue by end market. We continue to see recovery across our end markets with industrial showing broad recovery across sectors and geographies. We believe customer inventories are at low levels across all end markets. Similar to last quarter, I'll focus on sequential performance as it is more informative at this time. First, the industrial market increased upper single digits after seven consecutive quarters of sequential decline. The automotive market increased low single digits. Personal electronics declined mid-teens in line with typical seasonal trends. Enterprise systems grew mid-single digits, and communications equipment was up about 10%. Before I go to our second quarter guidance, let me take a minute to frame how we are approaching the current environment. It is a time of high uncertainty in the world as tariffs and geopolitics are disrupting global supply chains and creating unpredictable economic conditions. Adding to that, semiconductors are highly visible as it is broadly understood that people and economies are increasingly dependent on chips. To navigate in this environment, we will continue to rely on our three key ambitions. We will act like owners who will own the company for decades. We will adapt and succeed in a world that is ever-changing. And we will be a company that we are proud to be part of and would be proud to have as our neighbor. These guiding ambitions are not new. They have served us well for decades, and they are enormously valuable in times like these. we look at the current environment in two important categories. One, where we are in the phase of the semiconductor cycle, and two, providing geopolitically dependable capacity and navigating in a world that is changing. To help understand where we are in the cycle, we spent some time looking at previous events, including Y2K, the global financial crisis, and the COVID-19 pandemic. While no two scenarios are identical, these recent examples help inform our decisions as we prepare for a range of market scenarios. What may be unique right now is that we are at the bottom of the semiconductor cycle and customer inventories are at low levels across all end markets. So relative to where we are, history says it is important to have capacity and inventory in times like these, and we are well positioned. In addition, geopolitically dependable capacity will matter more, and it is increasingly critical and valuable to our customers. We have flexibility and are prepared to navigate the evolving supply chain dynamics. Translating all this to second quarter guidance, I would like to make three points. First, we remain cautious as there are many things still changing and we are working with our customers to understand and support their needs. As such, potential impact on our customers, suppliers, and TI is unclear and will likely evolve. Second, at this time, we don't see near-term impact to second quarter and we expect TI's revenue in the range of $4.17 billion dollars to $4.53 billion, and earnings per share to be in the range of $1.21 to $1.47. Finally, we will have to see what happens in second half 2025 and going into 2026, and we are prepared for a range of scenarios. We are and will remain flexible to navigate, especially in the immediate term. With that, let me turn it over to Rafael to review profitability and capital management.