TXN

Texas Instruments Incorporated

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/28/2026

Business Summary

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage supervisors, voltage references, and lighting products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in end markets, including amplifiers, data converters, interface products, motor drives, clocks, and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. The company also provides DLP products primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. It markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

 


VALUATION

P/E

49.54

Market Cap ($M USD)

$266.20B

Forward P/E

24.44

PEG

0.24

PRICE TO SALES

14.44

PRICE TO BOOK

15.85

EV / EBITDA

33.50

5-Year Average P/E

Free Cash Flow Yield

1.40%

DCF Value

$55.86

Graham Number

$49.52

Price to FCF

71.54

EV to FCF

74.36

Earnings Yield

2.02%

FCF Yield

1.40%

DIVIDEND

Yield

1.92%

Annual Payout

$5.62

Payout Ratio

94.13%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.90

Next Year EPS Growth Estimate

$11.97

Next Year Revenue Growth Estimate

$3.04T

Return on Equity (ROE)

32.49%

FREE CASH FLOW

Operating Margin

35.29%

Debt-to-Equity

0.95

Piotroski F-Score

7

Altman Z-Score

12.61

Return on Invested Capital (ROIC)

20.79%

Current Ratio

4.46

Quick Ratio

2.94

Net Debt to EBITDA

1.27

Interest Coverage

11.70

Gross Profit margin

57.32%

FCF PER SHARE

$4.09

REVENUE PER SHARE

$20.28

Gainseekers Quantitative Analysis

Summary

The market appears to be pricing Texas Instruments with a level of optimism that borders on exuberance. Despite a Forward P/E of 24.04, which suggests some growth expectations, the stock’s current trading price is dramatically inflated compared to its DCF Value and Graham Number. This discrepancy indicates a potential overvaluation. However, the Altman Z-score of 12.61 suggests robust financial health, and the Earnings Yield of 2.05% is underwhelming, hinting at limited immediate returns. Overall, the stock seems to be priced for perfection, with significant expectations baked in.

AI Exposure / Tech Reliance

As a semiconductor giant, Texas Instruments is well-positioned to capitalize on AI advancements and tech shifts. The semiconductor industry is crucial for AI development, providing the necessary hardware for processing power. This positions the company to benefit from increased demand as AI technologies proliferate.

The Bull Case

For the value or GARP investor, Texas Instruments offers compelling reasons to buy. The company boasts a strong ROIC of 20.79%, indicating efficient capital allocation and robust profitability. With a Piotroski F-Score of 7, it shows solid financial strength and operational efficiency. Despite a modest FCF Yield of 1.42%, the operating margin of 35.29% underscores its pricing power and ability to generate cash flow, making it an attractive long-term play.

The Bear Case

However, the stock's lofty valuation multiples raise red flags. A Price/Book ratio of 15.59 and a Price/Sales ratio of 14.21 suggest the stock is significantly overvalued relative to its book and sales values. The technical overextension near its 52-week high further exacerbates concerns of a potential pullback. Additionally, the Price to FCF ratio of 70.39 indicates poor cash flow relative to its price, posing a risk if growth expectations aren't met.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$253.71

Institutional Ownership %

1-Year Beta

1.30

Insider Buying % (6 Mo)

Distance to 52-Week High

1.30%

Distance to 52-Week Low

47.78%

EARNINGS SURPRISE %

23.53%

50-DAY SMA

$221.54

200-DAY SMA

$194.88

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.