Stock · TXN · Technology

Texas Instruments Incorporated

United States · Large Cap · listed since 1953 · Revenue 12 mo. $20.8B

Price as of 11/06/2026

StockScorer score
1.8
of 10 2 of 11 points Low Match To the score
Price
$277.36
1 Y +62.3%
Market cap
$284B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue −4.1% a year (3 years)EBIT margin 34.1%Payout 103.4% of operating cash flow

Summary

Texas Instruments Incorporated is around the middle of the Technology sector overall

51.4 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

Capital spending of €4.1B is pushing down FCF: the price requires more than 30% FCF growth a year, 21.8% at a normal investment rate.

If free cash flow stays at €2.3B (2025), it supports €26B. The remaining €228.9B of the market value assume it grows more than 30% a year for 10 years and not at all afterwards.

Required FCF growth per year

over 30%

no growth afterwards

Market value breakdown€254.8B market value, price as of 11/06/2026

€26B without growth
€228.9B priced-in growth
  • 5 yrs achieved −32.5%
  • 10 yrs achieved −9.8%
  • priced in above 30%

Valuation against its own history

Price to operating cash flow 25.8×, within its usual range.

Middle half of 20 quarters: 21.6× to 26.9×, median 23.5×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

1 sign supports the expectation, 2 speak against it.

What supports it

with respect to the priced-in expectation

  • High return on capital every year ROCE at least 17.2% (10 years)

What speaks against it

with respect to the priced-in expectation

  • Expectation above the company's own record at a normal investment rate priced in 21.8%, own record at most −9.8%
  • Dividend above free cash flow payout 227.3% of FCF

AI summary of the 2025 annual report

The business of Texas Instruments Incorporated according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 12/31/2025, filed 02/06/2026. Open the report at the SEC

Revenue by segment, fiscal year ended 12/31/2025

SegmentShareRevenue
Analog
79.2%
$14B
Embedded Processing
15.3%
$2.7B
Other
5.5%
$979M

From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.

Business model according to the report

  • The company designs and manufactures semiconductors and sells them to electronics designers and manufacturers worldwide.

    Quote
    We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world.
  • The Analog segment generated $14.01 billion of revenue in 2025.

    Quote
    Our Analog segment generated $14.01 billion of revenue in 2025.
  • Analog chips are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy.

    Quote
    Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy
  • The Embedded Processing segment includes microcontrollers, processors, wireless connectivity and radar products.

    Quote
    Our Embedded Processing segment includes microcontrollers, processors, wireless connectivity and radar products.
  • The Other category generated $979 million of revenue in 2025. It includes DLP products, mainly used to project high-definition images, calculators, and certain custom chips called ASICs.

    Quote
    Other generated $979 million of revenue in 2025 and includes revenue from DLP® products (primarily used to project high-definition images), calculators and certain custom semiconductors known as application-specific integrated circuits (ASICs).

Customers according to the report

  • The company sells its products to more than 100,000 customers.

    Quote
    We sell our products to over 100,000 customers.
  • The customer base is described as diverse. About half of revenue comes from customers outside the largest 50.

    Quote
    Our customer base is diverse, with about half of our revenue derived from customers outside of our largest 50.
  • Customers include companies in a wide range of markets and sectors within those markets.

    Quote
    Our customers include companies in a wide range of markets and sectors within those markets.

Competition according to the report

  • Despite consolidation, the analog and embedded processing markets remain highly fragmented.

    Quote
    Despite consolidation, the analog and embedded processing markets remain highly fragmented.
  • The company faces significant global competition from dozens of large and small companies, including broad-based and niche suppliers.

    Quote
    we face significant global competition from dozens of large and small companies, including both broad-based suppliers and niche suppliers.

Risks according to the report

  • Revenue from end customers based in China was about 20% of revenue in 2025, while revenue from products shipped into China was about 50%.

    Quote
    Revenue from end customers headquartered in China represented about 20% of our revenue in 2025, while revenue from products shipped into China represented about 50% of our revenue in 2025.
  • The company may face increased competition because China is actively promoting and reshaping its domestic chip industry through policy changes and investment. This could prevent the company from competing effectively.

    Quote
    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.
  • Governments have adopted or proposed measures, such as export controls on certain minerals, materials and equipment, which could hurt the availability, cost or movement of equipment and materials.

    Quote
    Governments have adopted or proposed measures, including export controls on certain minerals, materials and equipment, that could adversely affect equipment and material availability, cost or movement.
  • In 2025, less than 20% of revenue came through distributors. Distributors carry competing product lines, and sales could be affected if they promote rival products over the company's own.

    Quote
    In 2025, less than 20% of our revenue was generated from sales of our products through distributors. Our distributors carry competing product lines, and our sales could be affected if semiconductor distributors promote competing products over our products.

Since the last quarter

Q2 → Q3 2026

Mostly better than the previous quarter: 7 of 7 changes for the better.

  • Revenue, 12 mo.$19.5B → $20.8B+6.8%better
  • FCF, 12 mo.$5.4B → $7.3B+36.7%better
  • Gross margin58.3% → 60.2%+1.9 ppbetter
  • EBIT margin37.3% → 40.8%+3.5 ppbetter
  • FCF margin27.5% → 35.2%+7.7 ppbetter
  • Net debt$10.4B → $9.3B−10.1%better
  • Return on equity33.6% → 37.1%+3.5 ppbetter

1 more unchanged: Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability62.8above the middleEarns more than the sector: EBIT margin 34.06%, sector 17.40%.
MetricStockSector medianPosition in sector
Return on equity30.73%14.60%Rank 80
Return on capital (Greenblatt)26.29%29.77%Rank 45
EBIT margin34.06%17.40%Rank 87
FCF margin14.72%18.54%Rank 42
Gross margin57.02%48.47%Rank 60
Growth42.6around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year13.05%12.70%Rank 51
Earnings growth, 3 years per year−16.62%9.54%Rank 10
Earnings growth, 5 years per year−1.80%14.07%Rank 16
Sustainable growth (ROE × retained earnings)25.73%2.87%Rank 94
Valuation23.4below the middleValued higher than the sector: EV/sales 16.65, sector 5.18.
MetricStockSector medianPosition in sector
Earnings yield1.97%2.64%Rank 37
FCF yield0.92%3.06%Rank 17
EV/saleslower is better16.655.18Rank 13
EV/EBITlower is better48.8926.24Rank 27
Momentum71.1above the middleShare price doing better than the sector: Share price, 1 year 62.26%, sector −0.59%.
MetricStockSector medianPosition in sector
Share price, 1 year62.26%−0.59%Rank 91
Share price, 6 months−3.14%−4.46%Rank 52
Share price, 3 months2.08%−5.84%Rank 63
Distance from 52-week high−16.53%−33.23%Rank 78
Quality72.3above the middleQuality above the sector: Dividend streak in years 25, sector 8.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−2.03%1.65%Rank 73
Change in share countlower is better−0.65%−0.17%Rank 61
Dividend streak in years258Rank 98
Price reaction to results, market-adjusted−0.70%−1.57%Rank 57
Balance sheet & risk36.2below the middleMore risk than the sector: Debt to equity 0.95, sector 0.33.
MetricStockSector medianPosition in sector
Equity ratio47.05%53.98%Rank 38
Net debt/EBITDAlower is better1.27−0.20Rank 20
Debt to equitylower is better0.950.33Rank 18
Volatility, 1 yearlower is better43.96%50.37%Rank 69

Ten years in figures

Revenue from $13.4B (2016) to $17.7B (2025), 3.2% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt, $B
201613.436.3%4.11.02B2.5
201715.040.7%4.71.01B2.4
201815.842.5%6.1990M2.6
201914.439.8%5.8952M3.4
202014.540.8%5.5933M4.0
202118.348.8%6.3936M3.6
202220.050.6%5.9926M6.4
202317.541.9%1.3916M8.3
202415.634.9%1.5919M11.8
202517.734.1%2.6913M12.2
1.8 / 10Low MatchStockScorer score2 of 11 points

2 of 7 StockScorer Score rules met · How the score is built

Texas Instruments Incorporated mainly meets criteria in the Momentum category. Result from 18 strategies checked.

This stock · Profitability: 33%This stock · Growth: 0%This stock · Valuation: 0%This stock · Momentum: 100%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Texas Instruments Incorporated's score is built

Texas Instruments Incorporated is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

2 of 7 rules met

2 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector mediannot met0 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector mediannot met0 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketmet1 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Texas Instruments Incorporated stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Earnings Quality: Accrual Check (Sloan)
  • Levermann Strategy (13 Criteria)
  • Dividend Aristocrats & Continuity
  • StockScorer Score
  • Defensive: Low Volatility
  • High-Growth / Rule of 40
  • Undervalued Stocks: Multi-Factor Check
  • Magic Formula: Value + Quality
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Balanced GARP
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum

Texas Instruments Incorporated key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Texas Instruments Incorporated.

MetricStockSector
P/E ratio50.635.1
P/B ratio15.65.5
Return on equity (ROE)30.7%14.6%
Equity ratio47.1%54.0%
Debt-to-equity (D/E)0.950.33
Dividend yield2.1%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
TXNTexas Instruments Incorporatedthis page
INTCIntel CorporationLow0.9
QCOMQualcomm IncorporatedHigh7.3
ADIAnalog Devices IncHigh6.4
MRVLMarvell Technology Group Ltdlocked
AMDAdvanced Micro Devices Inclocked

Frequently asked questions about Texas Instruments Incorporated stock

How does Texas Instruments Incorporated stock (TXN) score in the StockScorer model?
Texas Instruments Incorporated stock reaches a StockScorer score of 1.8 out of 10, which is a low match with the rule-based strategies. 2 out of 7 flagship profile rules are met.
What is Texas Instruments Incorporated's P/E ratio?
Texas Instruments Incorporated's P/E ratio is 50.6. The Technology sector median is 35.1.
What sector is Texas Instruments Incorporated in?
Texas Instruments Incorporated is assigned to the Technology sector. Its rank within the sector is 51.4 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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