A Business at a Glance
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TEXAS INSTRUMENTS INC
TXN
$255.1B
Mkt Cap
$279.58
-1.90%
TEXAS INSTRUMENTS INC (TXN) has a current P/E ratio of 51.3, compared to its historical median P/E of 21.8. The stock is currently considered Expensive based on its historical valuation range.
TEXAS INSTRUMENTS INC (TXN) has a 5-year average return on invested capital (ROIC) of 44.6%. This indicates strong capital allocation and a potential competitive advantage.
TEXAS INSTRUMENTS INC (TXN) has a market capitalization of $486.7B. It is classified as a mega-cap stock.
Yes, TEXAS INSTRUMENTS INC (TXN) pays a dividend with a trailing twelve-month yield of 1.04%. The company also returns capital through share buybacks, with a buyback yield of 0.20%.
Based on historical P/E analysis, TEXAS INSTRUMENTS INC (TXN) appears expensive. The current P/E of 51.3 is 136% above its historical median of 21.8. The estimated fair value CAGR (P/E method) is 1.7%.
TEXAS INSTRUMENTS INC (TXN) operates in the Semiconductors & Related Devices industry, within the Technology sector.
TEXAS INSTRUMENTS INC (TXN) reported annual revenue of $17.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Texas Instruments designs and manufactures semiconductors sold to electronics designers and manufacturers globally, with operations spanning more than 30 countries and headquarters in Dallas, Texas. The company operates through two primary reportable segments: Analog (79% of 2025 revenue, $14.01 billion), which includes Power and Signal Chain products that manage power distribution and convert real-world signals into digital data for processing, and Embedded Processing (15% of 2025 revenue, $2.70 billion), which provides the digital "brains" for electronic equipment ranging from microcontrollers to specialized radar and vision processors. TI's business model emphasizes a broad portfolio of more than 80,000 products serving diverse end-markets—industrial (33%), automotive (33%), personal electronics (21%), data center (9%), and communications equipment (3%)—with a competitive advantage rooted in manufacturing and technology capabilities, product breadth, market channel reach, and product longevity. The company distributes primarily through direct channels (over 80% of 2025 revenue), including its website and sales team, supplemented by distributors, and serves over 100,000 customers with about half of revenue derived from customers outside the largest 50. Unit economics are characterized by long customer relationships driven by embedded software investments, recurring revenue from diverse applications, and capital-intensive manufacturing operations that support both high-volume commodity products and specialized solutions.
【Industrial recovery continuing】 Management expects industrial markets to sustain growth momentum into the second quarter and beyond, with industrial revenue having grown for seven consecutive quarters and establishing new highs anticipated in the future. Data center represents a significant growth opportunity as capital expenditure continues in that market, with TI's analog products sampling and expected to expand further in coming years. The company anticipates gross margins to improve modestly as revenue grows, with incremental gross margin expected to fall within a 75–85% range, though near-term margin expansion is tempered by elevated depreciation from the elevated capital expenditure cycle that is nearing completion. Pricing is expected to remain under pressure with low single-digit declines anticipated, and the company is managing inventory levels within its target range of 150–250 days to support cyclical recovery scenarios while maintaining operational flexibility.
| Metric | Target | Period |
|---|---|---|
| Depreciation | $2.2–2.4 billion | FY2026 |
Depreciation (FY2026): “For this year, $2.2-$2.4”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.4B | 17.7B | 15.6B | 17.5B | 20.0B | 18.3B |
| Net Income | 5.3B | 5.0B | 4.8B | 6.5B | 8.7B | 7.7B |
| EPS | $3.06 | $5.45 | $5.20 | $7.07 | $9.41 | $8.26 |
| Free Cash Flow | 3.7B | 2.6B | 1.5B | 1.3B | 5.9B | 6.3B |
| ROIC | 22.1% | 21.5% | 22.2% | 37.5% | 68.0% | 73.6% |
| Gross Margin | 57.3% | 57.0% | 58.1% | 62.9% | 68.8% | 67.5% |
| Debt/Equity | 0.84 | 0.91 | 0.85 | 0.70 | 0.63 | 0.62 |
| Dividends/Share | $2.90 | $5.50 | $5.26 | $5.02 | $4.69 | $4.21 |
| Operating Income | 6.5B | 6.0B | 5.5B | 7.3B | 10.1B | 9.0B |
| Operating Margin | 35.3% | 34.1% | 34.9% | 41.8% | 50.6% | 48.8% |
| ROE | 31.8% | 30.0% | 28.3% | 41.2% | 62.4% | 68.7% |
| Shares Outstanding | 1,741M | 912M | 918M | 916M | 926M | 937M |
TEXAS INSTRUMENTS INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
TEXAS INSTRUMENTS INC trades at 51.3x trailing earnings, compared to its 15-year median P/E of 21.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 97.5x vs a median of 20.6x. The company's 5-year average ROIC is 44.6% with a gross margin of 62.9%. Total shareholder yield (dividends + buybacks) is 1.2%. At current prices, the estimated annualized return to fair value is -20.2%.
TEXAS INSTRUMENTS INC (TXN) has a net profit margin of 28.1%. This is a strong margin indicating high profitability.
TEXAS INSTRUMENTS INC (TXN) generated $2.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TEXAS INSTRUMENTS INC (TXN) has a debt-to-equity ratio of 0.91. This indicates moderate leverage.
TEXAS INSTRUMENTS INC (TXN) reported earnings per share (EPS) of $5.45 in its most recent fiscal year.
TEXAS INSTRUMENTS INC (TXN) has a return on equity (ROE) of 30.0%. This indicates the company generates strong returns for shareholders.
TEXAS INSTRUMENTS INC (TXN) has a 5-year average gross margin of 62.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for TEXAS INSTRUMENTS INC (TXN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TEXAS INSTRUMENTS INC (TXN) has a book value per share of $17.83, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects industrial markets to sustain growth momentum into the second quarter and beyond, with industrial revenue having grown for seven consecutive quarters and establishing new highs anticipated in the future. Data center represents a significant growth opportunity as capital expenditure continues in that market, with TI's analog products sampling and expected to expand further in coming years. The company anticipates gross margins to improve modestly as revenue grows, with incremental gross margin expected to fall within a 75–85% range, though near-term margin expansion is tempered by elevated depreciation from the elevated capital expenditure cycle that is nearing completion. Pricing is expected to remain under pressure with low single-digit declines anticipated, and the company is managing inventory levels within its target range of 150–250 days to support cyclical recovery scenarios while maintaining operational flexibility.
Based on recent SEC filings and earnings calls, TEXAS INSTRUMENTS INC (TXN) has provided the following forward guidance: Depreciation: $2.2–2.4 billion (FY2026).