Texas Instruments Inc (TXN)
Information Technology · Semiconductors · US stock · S&P 500 component
$279.50
▼ -5.15 (1.81%)
Fair valueOvervalued
$227 −18.8% to fair value
$113fair band $193–$275$340
Day's range
$276.59 – $286.54
52-week range
$152.73 – $334.03
About Texas Instruments Inc
Analog and embedded processing chips are the core of what Texas Instruments designs and manufactures. Its products manage power, convert real-world signals into digital data and run the control functions inside electronic equipment. They go into cars, factory machinery, personal electronics, communications equipment and data centres, and customers range from large manufacturers to small design teams that order through the company's website or distributors. The company runs much of its own chip manufacturing.
Revenue comes from the chips it ships to a large and varied set of customers. Over the last twelve months it reached $19.5 billion, but revenue growth over the last three years was -4.1% a year, so sales are lower than before. The operating margin is 37.3%, and the business earns a profit of 25% on the capital invested in it. It has net debt of 1.0 times EBITDA. Shareholders receive a dividend with a yield of 2.0%. On the site's X-Ray Score it receives 44 out of 100.
Price chart
52-wk range $152.73 – $334.03Volume 13,866,509Daily, split-adjusted
Vitals
Market cap$257.1B
52-week range$152.73 – $334.03
Volume (last day)13,866,509
P/E (TTM)42.3
EBIT / EV yield2.7%
Free-cash-flow yield2.1%
Dividend yield2.0%
Revenue (TTM)$19.5B
Net income (TTM)$6.1B
Operating margin37.3%
Return on capital25.4%
Debt incl. leases$14.1B
Cash & securities$7.0B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$227middle half of models $195 – $258
Overvalued
−18.8% to fair value
Average of the 12 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $280
Undervalued < $193Fair $193 – $275Overvalued > $275
P/E multiple
$263
P/B multiple
$230
P/S multiple
$250
EV/EBITDA multiple
$333
EV/EBIT multiple
$289
EV/revenue multiple
$256
10-year DCF, EBITDA exit
$175
5-year DCF, EBITDA exit
$224
10-year DCF, revenue exit
$169
5-year DCF, revenue exit
$219
10-year DCF, growth exit · not used
$49
5-year DCF, growth exit · not used
$55
Dividend discount, stable
$113
Dividend discount, multi-stage
$201
Earnings power value · not used
$106
Growth the price implies
33.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
27/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield2.7%
Free-cash-flow yield2.1%
Fair value vs price0.8×
Growth
Weak
16/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)-4.1%
EPS growth (3y)-16.6%
Growth consistency60%
Profitability
Fair
59/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital25.4%
Operating margin37.3%
Gross profitability31.6%
Financial health
Strong
71/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA1.0×
Interest coverNo interest cost
Dividends
Fair
50/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.0%
Dividends vs free cash flow98%
Dividend growth5.2%
Quarterly results: last 6 quarters
+11.1%
Mar '25
+16.4%
Jun '25
+14.2%
Sep '25
+10.4%
Dec '25
+18.6%
Mar '26
+22.8%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $5.5B, diluted EPS $2.14.
Compare with peers
MU Micron Technology Inc79 FSLR First Solar, Inc.70 NVDA Nvidia Corp67 AVGO Broadcom Inc.60Other Semiconductors companies by X-Ray Score.
SWOT analysis: Texas Instruments Inc
Strengthsinside the company
- Return on invested capital is 25.4%, against a median of 12.7% for industry peers.
- Operating margin of 37.3% is well above the 26.0% median of industry peers, a sign of pricing power or lower costs.
- Operating profit covers interest 50x, so debt costs are a small drag.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Revenue has fallen 4.1% a year over three years while industry peers grew 5.8%.
- Earnings per share have declined 16.6% a year over three years.
Opportunitiesvaluation and setting
- Revenue growth picked up to 13.0% last year from -4.1% a year over three years.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- The price is 19% above our fair value estimate, so there is little room for disappointment.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Earnings in Semiconductors follow the industry cycle, so margins and profits can swing from year to year.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TXN with peers and sector
Medians of 14 Semiconductors peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): NVDA 67, AVGO 60, MU 79, AMD 48, INTC 17, MRVL 31.
| Metric | TXN | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 44 | 45 | 50 |
| Valuation | 27 | 33 | 52 |
| Growth | 16 | 44 | 54 |
| Profitability | 59 | 41 | 49 |
| Financial health | 71 | 58 | 49 |
| Dividends | 50 | 53 | 51 |
Sector leaders: highest X-Ray Score in Information Technology
TXN ranks #51 of 75 in Information Technology and #8 of 15 in Semiconductors by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TXN
Each factor is rated by where TXN stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 6 Average · 9 Bad of 23
Growth: 0 · 1 · 2
Profitability: 3 · 2 · 0
Financial strength: 3 · 1 · 0
Valuation: 0 · 0 · 5
Cash flow: 1 · 2 · 1
Efficiency: 1 · 0 · 1
| Factor | TXN | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −4.1% | Bad beats 7% | +9.7% | – | – |
| Revenue growth, last year | +13.0% | Average beats 45% | +13.7% | +9.2% | ▲ Better |
| EPS growth, 3 years a year | −16.6% | Bad beats 11% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 58.3% | Average beats 52% | 57.8% | 62.9% | ≈ In line |
| Operating margin | 37.3% | Good beats 83% | 20.3% | 41.8% | ▼ Worse |
| Net margin | 31.1% | Good beats 82% | 17.8% | 37.2% | ▼ Worse |
| Return on invested capital | 25.4% | Average beats 60% | 19.4% | – | – |
| Return on equity | 33.6% | Good beats 71% | 21.0% | 38.5% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 1.0x | Average beats 43% | 0.8x | 0.4x | ▼ Worse |
| Interest cover | 50.0x | Good beats 75% | 23.0x | – | – |
| Current ratio | 4.86 | Good beats 97% | 1.57 | 4.55 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 42.5x | Bad beats 33% | 33.6x | 24.0x | ▼ Worse |
| Price / book | 14.3x | Bad beats 29% | 8.3x | 10.2x | ▼ Worse |
| Price / sales | 13.2x | Bad beats 22% | 6.9x | 9.0x | ▼ Worse |
| EV / EBITDA | 36.4x | Bad beats 29% | 24.7x | 21.7x | ▼ Worse |
| Free cash flow yield | 2.1% | Bad beats 29% | 3.4% | 1.6% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 27.5% | Average beats 61% | 22.3% | 14.7% | ▲ Better |
| Cash from operations / net income | 1.43 | Average beats 52% | 1.39 | 1.13 | ▲ Better |
| Free cash flow growth, 3 years a year | −24.0% | Bad beats 4% | +15.4% | – | – |
| Accruals (lower is better) | −7.3% | Good beats 74% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 1.8x | Bad beats 7% | 3.9x | 1.6x | ≈ In line |
| Days sales outstanding | 47 days | Good beats 76% | 63 days | 37 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 6 Good · ● 4 Average · ● 6 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldBad
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 46/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $18.3B | $20.0B | $17.5B | $15.6B | $17.7B |
| Operating income | $9.0B | $10.1B | $7.3B | $5.5B | $6.0B |
| Net income | $7.8B | $8.7B | $6.5B | $4.8B | $5.0B |
| Operating cash flow | $8.8B | $8.7B | $6.4B | $6.3B | $7.2B |
| Operating margin | 48.8% | 50.6% | 41.8% | 34.9% | 34.1% |
| Free cash flow | $6.3B | $5.9B | $1.3B | $1.5B | $2.6B |
| Diluted EPS | $8.26 | $9.41 | $7.07 | $5.20 | $5.45 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
6 bullish · 4 neutral · 6 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 280.8 | Bearish |
| EMA 10 | 281.0 | Bearish |
| SMA 20 | 283.5 | Bearish |
| EMA 20 | 280.2 | Bearish |
| SMA 50 | 272.2 | Bullish |
| EMA 50 | 277.4 | Bullish |
| SMA 100 | 282.2 | Bearish |
| EMA 100 | 273.0 | Bullish |
| SMA 200 | 254.8 | Bullish |
| EMA 200 | 256.0 | Bullish |
Oscillators (daily)
| RSI (14) | 50.40 | Neutral |
| MACD (12, 26) | 1.77 | Bullish |
| Momentum (12) | -5.97 | Bearish |
| Stochastic %K (14) | 28.01 | Neutral |
| Williams %R (14) | -71.99 | Neutral |
| CCI (20) | -32.73 | Neutral |
Pivot points (classic, last session)
S3 265.3 | S2 270.9 | S1 275.2 | Pivot 280.9 | R1 285.2 | R2 290.8 | R3 295.1 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
5.68 USD
Yield on today's price
2.03%
Frequency
Quarterly
Next ex-dividend date
30 Oct 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 1.5200 |
| 1.4200 | |
| 1.4200 | |
| 1.4200 | |
| 1.4200 | |
| 1.3600 | |
| 1.3600 | |
| 1.3600 | |
| 1.3600 | |
| 1.3000 | |
| 1.3000 | |
| 1.3000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TXN
| ETF | Share of the fund |
|---|---|
| TDIV First Trust NASDAQ Technology Dividend... | 7.06% |
| SCHD Schwab U.S. Dividend Equity | 5.90% |
| QLTY GMO U.S. Quality | 4.44% |
| SMH VanEck Semiconductor | 4.17% |
| SOXQ Invesco PHLX Semiconductor | 3.60% |
| SOXX iShares Semiconductor | 3.50% |
| XNTK SPDR Morgan Stanley Technology | 3.38% |
| CHPY YieldMax Semiconductor Portfolio Optio... | 3.05% |
The eight funds with the largest weight in TXN among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TXN stock splits
TXN has split its stock 4 times since 1995. The latest was a 2-for-1 split on 23 May 2000.
Full TXN stock split history →TXN SEC filings
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.