Texas Instruments Incorporated (TXN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Texas Instruments Incorporated (TXN) Technology Profile & Competitive Position

Texas Instruments Incorporated, a global semiconductor company, specializes in analog and embedded processing solutions. With a diverse product portfolio and a focus on industrial and automotive markets, TXN leverages its established manufacturing capabilities and extensive distribution network to serve a broad customer base.

What Is the Investment Thesis for TXN?

Texas Instruments presents a compelling investment case based on its established market position and strategic focus. The company's strong free cash flow generation, with a recent FCF of $0.80 billion, supports its dividend yield of 1.95%. TXN's focus on the industrial and automotive sectors, which are experiencing increasing demand for semiconductors, positions it for sustained growth. The company's high gross margin of 57.3% and profit margin of 29.1% reflect its operational efficiency and pricing power. Key catalysts include the increasing adoption of advanced driver-assistance systems (ADAS) in automobiles and the expansion of industrial automation. Potential risks include cyclical downturns in the semiconductor industry and increasing competition from companies like Broadcom Inc. (AVGO) and Intel Corporation (INTC).

Based on FMP financials and quantitative analysis

TXN Key Highlights

Market capitalization of $244B, reflecting its significant presence in the semiconductor industry.

• P/E ratio of 30.4, indicating investor expectations for future earnings growth.
• Gross margin of 57.3%, demonstrating efficient operations and strong pricing power.
• Profit margin of 29.1%, highlighting the company's ability to convert revenue into profit.
• Dividend yield of 1.95%, providing a steady income stream for investors.

Who Are TXN's Competitors?

TXN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TXN's Key Strengths?

Strong market position in analog and embedded processing.

• Diverse product portfolio catering to multiple industries.
• Efficient manufacturing operations and supply chain.
• Extensive distribution network and global reach.

What Are TXN's Weaknesses?

Exposure to cyclical downturns in the semiconductor industry.

• Dependence on key customers and end markets.
• Potential impact from geopolitical tensions and trade restrictions.
• Competition from larger and more diversified semiconductor companies.

What Could Drive TXN Stock Higher?

Increasing demand for semiconductors in the automotive and industrial sectors.

• Expansion of 5G infrastructure and the Internet of Things (IoT).
• Launch of new analog and embedded processing products with enhanced performance and features.
• Strategic partnerships and acquisitions to expand market reach and product offerings.

What Are the Key Risks for TXN?

Insider selling — insiders were net sellers of roughly $21.1M recently.

• Cyclical downturns in the semiconductor industry.
• Intense competition from established and emerging semiconductor companies.
• Disruptions in the supply chain and increased raw material costs.
• Geopolitical tensions and trade restrictions impacting global operations.

What Are the Growth Opportunities for TXN?

• Expansion in the Automotive Market: The increasing adoption of advanced driver-assistance systems (ADAS) and electric vehicles (EVs) is driving demand for semiconductors in the automotive market. Texas Instruments is well-positioned to capitalize on this trend with its portfolio of analog and embedded processing solutions for automotive applications. The automotive semiconductor market is projected to reach $66 billion by 2026, offering significant growth potential for TXN.
• Growth in the Industrial Sector: The industrial sector is undergoing a digital transformation, with increasing adoption of automation, robotics, and IoT devices. This is driving demand for semiconductors in industrial applications. Texas Instruments offers a range of products for industrial applications, including microcontrollers, sensors, and power management solutions. The industrial semiconductor market is expected to reach $78 billion by 2027, presenting a substantial growth opportunity for TXN.
• Focus on Power Management Solutions: The increasing demand for energy-efficient electronic devices is driving the need for advanced power management solutions. Texas Instruments offers a comprehensive portfolio of power management products, including DC/DC converters, battery management systems, and voltage regulators. The power management IC market is projected to reach $48 billion by 2028, providing a significant growth opportunity for TXN.
• Development of Advanced Microcontrollers: Microcontrollers are essential components in a wide range of electronic devices, from consumer electronics to industrial equipment. Texas Instruments is investing in the development of advanced microcontrollers with enhanced performance, security, and connectivity features. The microcontroller market is expected to reach $35 billion by 2027, offering a substantial growth opportunity for TXN.
• Leveraging Distribution Network: Texas Instruments has an extensive distribution network that reaches a global customer base. The company can leverage this network to expand its market reach and increase sales of its products. The global semiconductor distribution market is expected to reach $80 billion by 2026, highlighting the importance of a strong distribution network for semiconductor companies.

What Opportunities Does TXN Have?

• Growth in the automotive and industrial sectors driven by increasing demand for semiconductors.
• Expansion in emerging markets with increasing adoption of electronic devices.
• Development of new products and technologies to address evolving customer needs.
• Strategic acquisitions and partnerships to expand market reach and product offerings.

What Threats Does TXN Face?

• Intense competition from established and emerging semiconductor companies.
• Rapid technological advancements and changing customer preferences.
• Economic slowdowns and reduced demand for electronic devices.
• Disruptions in the supply chain and increased raw material costs.

What Are TXN's Competitive Advantages?

• Strong brand reputation and established market position in the semiconductor industry.
• Extensive portfolio of analog and embedded processing products.
• Significant investment in research and development, leading to innovative products.
• Efficient manufacturing operations and strong supply chain management.
• Extensive distribution network reaching a global customer base.

What Does TXN Do?

Founded in 1930 and headquartered in Dallas, Texas, Texas Instruments Incorporated (TXN) has evolved into a leading semiconductor company. Initially focused on geophysical services, the company transitioned to defense electronics during World War II, marking its entry into the semiconductor industry. TXN is now structured around two primary segments: Analog and Embedded Processing. The Analog segment provides power management and signal chain products, essential for regulating power and processing signals in electronic devices. These products include battery-management solutions, DC/DC switching regulators, amplifiers, data converters, and interface products. The Embedded Processing segment offers microcontrollers, digital signal processors (DSPs), and application processors, crucial for controlling and computing functions in various electronic systems. These products cater to markets such as industrial, automotive, personal electronics, communications equipment, and enterprise systems. TXN's products are marketed and sold through direct sales, distributors, and its website, reaching a global customer base.

What Products and Services Does TXN Offer?

• Designs and manufactures analog and embedded processing semiconductors.
• Provides power management solutions for various electronic devices.
• Offers signal chain products for sensing, conditioning, and measuring signals.
• Develops microcontrollers for use in electronic equipment.
• Creates digital signal processors (DSPs) for mathematical computations.
• Produces application processors for specific computing activities.
• Markets and sells its products through direct sales, distributors, and its website.

How Does TXN Make Money?

• Designs, manufactures, and sells semiconductors to electronics designers and manufacturers.
• Generates revenue through the sale of analog and embedded processing products.
• Operates through two segments: Analog and Embedded Processing.
• Utilizes a direct sales force and a network of distributors to reach customers globally.

What Industry Does TXN Operate In?

Texas Instruments operates in the semiconductor industry, a sector characterized by rapid technological advancements and cyclical demand. The industry is experiencing growth driven by increasing demand for semiconductors in various applications, including automotive, industrial, and consumer electronics. The market is competitive, with key players like Broadcom Inc. (AVGO), Micron Technology, Inc. (MU), Advanced Micro Devices, Inc. (AMD), Intel Corporation (INTC), and QUALCOMM Incorporated (QCOM). TXN differentiates itself through its focus on analog and embedded processing solutions, its strong manufacturing capabilities, and its extensive distribution network.

Who Are TXN's Key Customers?

• Electronics designers and manufacturers worldwide.
• Companies in the industrial, automotive, personal electronics, communications equipment, and enterprise systems markets.
• Customers who require power management and signal chain solutions.
• Organizations that need microcontrollers, DSPs, and application processors.

Over the past six months, Texas Instruments Incorporated insiders filed 15 SEC Form 4 transactions — 9 sales and 6 purchases. On net that is roughly 62K shares disposed (about $21.1M), a signal worth weighing alongside the fundamentals.

Wall Street analysts project Texas Instruments Incorporated revenue of about $21.91B for fiscal 2026, with EPS near $8.48. The estimate reflects 23 contributing analysts.

Texas Instruments Incorporated has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 8.9% above estimates on average.

Texas Instruments Incorporated's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 12.05 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Texas Instruments Incorporated stands at 35.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 16.9%, showing how much profit it generates from its asset base. TXN trades at a trailing price-to-earnings ratio of 30.42, below the Technology sector average of ~34x. Its free cash flow yield is 2.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.86 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.5%, the inverse of the P/E and a quick read on earnings relative to price.

Texas Instruments Incorporated (TXN) Valuation Context

Valued at $244B, TXN is classified as a mega-cap stock. Relative to its peer group, TXN's quantitative score of 75/100 is roughly in line with the peer average of 73/100.

TXN Revenue & Earnings Trend

In Q2 2026, TXN generated $5.46B in top-line revenue, marking a sequential increase of 13.2%. The company recorded net income of $1.98B, with diluted EPS of $2.14. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mega-cap Technology company. Across the four most recent quarters, TXN averaged $1.65 in diluted EPS.

Company Profile

Texas Instruments Incorporated operates in the Semiconductors industry within the Technology sector. It is headquartered in Dallas, US. The company is led by CEO Haviv Ilan. TXN has traded publicly since 1972.

TXN Financials

TXN earnings history & estimates →

TXN Latest News

TXN Analyst Consensus

TXN MoonshotScore

Latest Texas Instruments Incorporated Analysis

TXN Technology Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources