Texas Instruments (TXN)
Information Technology · $246B market cap · SEC CIK 0000097476
fundamentals score out of 100
Next reports on Oct 19, 2026, after the close, with analysts expecting $2.44 in earnings per share.
The case for TXN
- Earns 36% back on shareholder equity.
- 31% of revenue drops through to net profit.
- Revenue growing 16.7% year over year.
- Pays a 3.4% dividend while you wait.
- Gross margin of 58% absorbs cost shocks.
- Current assets cover the near-term bills 4.9 times over.
The case against
- Pricey at 40.6× earnings, against a long-run market average nearer 20×.
- Priced at 12.6× sales, which leaves no room for a stumble.
- Dividend takes 84% of earnings, leaving little cushion.
- Growth is weak (41/100): revenue +16.7%, EPS +20.3%, +4.1% a year over five years.
- Free cash flow is only 1.1% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 30 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 41 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 68 |
| Momentumhow the price has behaved lately | 58 |
| Stabilityhow violently it moves, what it owes and what it pays you | 58 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 40.6× |
|---|---|
| Price / book | 15.06× |
| Price / sales | 12.6× |
| Revenue growth (YoY) | +16.7% |
| EPS growth (YoY) | +20.3% |
| Gross margin | 58% |
| Operating margin | 37% |
| Net margin | 31% |
| Return on equity | 36% |
| Debt / equity | 0.78× |
| Current ratio | 4.86 |
| Dividend yield | 3.39% |
| Beta | 1.42 |
| 52-week range | $152.73 – $334.03 |
| Position in that range | 65% of the way up |
| 3-month return | -16.1% |
| 1-year return | +51.0% |
Five years of financials, as filed
Pulled from Texas Instruments's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $17.7B | $15.6B | $17.5B | $20.0B | $18.3B |
| Gross profit | $10.1B | $9.1B | $11.0B | $13.8B | $12.4B |
| Operating income | $6.0B | $5.5B | $7.3B | $10.1B | $9.0B |
| Net income | $5.0B | $4.8B | $6.5B | $8.7B | $7.8B |
| Operating cash flow | $7.2B | $6.3B | $6.4B | $8.7B | $8.8B |
| Capital expenditure | $4.5B | $4.8B | $5.1B | $2.8B | $2.5B |
| Total assets | $34.6B | $35.5B | $32.3B | $27.2B | $24.7B |
| Total liabilities | $18.3B | $18.6B | $15.5B | $12.6B | $11.3B |
| Shareholder equity | $16.3B | $16.9B | $16.9B | $14.6B | $13.3B |
| Cash | $3.2B | $3.2B | $3.0B | $3.0B | $4.6B |
| Long-term debt | $13.5B | $12.8B | $10.6B | $8.2B | $7.2B |
| Free cash flow | $2.6B | $1.5B | $1.3B | $5.9B | $6.3B |
| Gross margin | 57.0% | 58.1% | 62.9% | 68.8% | 67.5% |
| Operating margin | 34.1% | 34.9% | 41.8% | 50.6% | 48.8% |
| Net margin | 28.3% | 30.7% | 37.2% | 43.7% | 42.4% |
| Diluted shares | 913M | 919M | 916M | 926M | 936M |
Share count is essentially flat over 4 years.
What Texas Instruments says it does
We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world. Our operations began in 1930, and we are incorporated in Delaware. With headquarters in Dallas, Texas, we have design, manufacturing or sales operations in more than 30 countries. Our two reportable segments are Analog and Embedded Processing, and we report the results of our remaining business activities in Other. In 2025, we generated $17.68 billion of revenue. For decades, we have operated with a passion to create a better world by making electronics more affordable through semiconductors. We were pioneers in the transition from vacuum tubes to transistors and then to integrated circuits. As each generation has become more reliable, more affordable and lower in power, semiconductors are used by a growing number of customers and markets. Our passion continues to be alive today as we help our customers develop…
Risk factors TXN lists in its 10-K
- Risks related to our business and industry
- Risks related to our financing activities and other risks
- Like many companies, we are susceptible to a potential downturn associated with macroeconomic weakness, which may affect our performance and the performance of our customers
- Any of these factors could adversely affect our results of operations, financial condition and reputation
- For example, we may face increased competition as a result of China actively promoting and reshaping its domestic semiconductor industry through policy changes and investment, which could prevent us from competing effectively
- 9 Changes in expected demand for our products could have a material adverse effect on our results of operations
- If demand in one or more sectors within our markets declines or the rate of growth slows, our results of operations may be adversely affected
- Our ability to match inventory and production with the product mix needed to fill orders may affect our ability to meet a quarter’s revenue forecast
- Our operating results and our reputation could be adversely affected by cybersecurity events, breaches, disruptions or other incidents relating to our information technology systems
- Our ability to successfully implement strategic, business and organizational changes could affect our business plans and results of operations