📊 TXN Key Takeaways
Is Texas Instruments Inc. (TXN) a Good Investment?
Texas Instruments exhibits strong operational margins (37.5%) and robust revenue growth (13.0% YoY) with healthy cash generation, but net income growth is materially lagging at only 0.6% YoY, signaling margin compression or cost pressures that warrant caution. The solid liquidity position and manageable leverage provide a stable foundation, but modest returns on capital (ROE 9.2%, ROA 4.5%) and slowing earnings growth limit upside potential.
Texas Instruments shows high-quality fundamentals with excellent gross, operating, and net margins, strong returns on equity and assets, and solid revenue growth. The balance sheet remains healthy with strong liquidity, but flat net income growth and elevated capital spending are constraining free cash flow conversion. Overall, the business appears fundamentally strong, though growth quality should be monitored to ensure revenue gains translate into stronger earnings and cash generation.
Why Buy Texas Instruments Inc. Stock? TXN Key Strengths
- Exceptional gross margin of 58% demonstrates strong pricing power and manufacturing efficiency
- Robust revenue growth of 13% YoY indicates solid market demand in semiconductor sector
- Excellent liquidity with current ratio of 4.46x and strong free cash flow generation of $844M
- Manageable debt-to-equity ratio of 0.84x with adequate interest coverage capacity
- Excellent profitability with 57.0% gross margin, 34.1% operating margin, and 28.3% net margin
- Strong financial health supported by 4.35x current ratio and 30.7% ROE
- Positive top-line growth of 13.0% YoY indicates demand resilience and operating scale
TXN Stock Risks: Texas Instruments Inc. Investment Risks
- Significant divergence between revenue growth (13%) and net income growth (0.6%) suggests operational margin compression or elevated costs
- Modest return on equity of 9.2% indicates below-average capital efficiency for a high-margin business
- High leverage at $14.1B long-term debt paired with decelerating earnings growth increases financial risk
- Elevated insider trading activity (42 Form 4 filings in 90 days) may signal management concern about valuation or earnings trajectory
- Net income grew only 0.6% YoY, suggesting margin pressure or higher costs below the operating line
- High capital expenditures of $4.55B are limiting free cash flow to $2.60B
- Long-term debt of $14.05B is meaningful relative to equity and cash balances
Key Metrics to Watch
- Operating margin trend and expense growth rates relative to revenue
- Net income growth acceleration and underlying drivers of earnings deceleration
- Free cash flow sustainability and capital allocation decisions (debt reduction vs. dividend/buybacks)
- Return on equity improvement and asset turnover efficiency
- Free cash flow and capex intensity
- Net income growth relative to revenue growth
Texas Instruments Inc. (TXN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.46x current ratio provides a solid financial cushion.
TXN Profit Margin, ROE & Profitability Analysis
TXN vs Technology Sector: How Texas Instruments Inc. Compares
How Texas Instruments Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Texas Instruments Inc. Stock Overvalued? TXN Valuation Analysis 2026
Based on fundamental analysis, Texas Instruments Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Texas Instruments Inc. Balance Sheet: TXN Debt, Cash & Liquidity
TXN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Texas Instruments Inc.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $7.07 reflects profitable operations.
TXN Revenue Growth, EPS Growth & YoY Performance
TXN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.1B | $1.2B | $1.28 |
| Q3 2025 | $4.2B | $1.4B | $1.47 |
| Q2 2025 | $3.8B | $1.1B | $1.22 |
| Q1 2025 | $3.7B | $1.1B | $1.20 |
| Q3 2024 | $4.2B | $1.4B | $1.47 |
| Q2 2024 | $3.8B | $1.1B | $1.22 |
| Q1 2024 | $3.7B | $1.1B | $1.20 |
| Q3 2023 | $4.5B | $1.7B | $1.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Texas Instruments Inc. Dividends, Buybacks & Capital Allocation
TXN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Texas Instruments Inc. (CIK: 0000097476)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777668580.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777668574.xml | View → |
| Apr 30, 2026 | 4 | xslF345X06/wk-form4_1777580913.xml | View → |
| Apr 28, 2026 | 4 | xslF345X06/wk-form4_1777408972.xml | View → |
| Apr 28, 2026 | 4 | xslF345X06/wk-form4_1777408968.xml | View → |
❓ Frequently Asked Questions about TXN
What is the AI rating for TXN?
Texas Instruments Inc. (TXN) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXN's key strengths?
Claude: Exceptional gross margin of 58% demonstrates strong pricing power and manufacturing efficiency. Robust revenue growth of 13% YoY indicates solid market demand in semiconductor sector. ChatGPT: Excellent profitability with 57.0% gross margin, 34.1% operating margin, and 28.3% net margin. Strong financial health supported by 4.35x current ratio and 30.7% ROE.
What are the risks of investing in TXN?
Claude: Significant divergence between revenue growth (13%) and net income growth (0.6%) suggests operational margin compression or elevated costs. Modest return on equity of 9.2% indicates below-average capital efficiency for a high-margin business. ChatGPT: Net income grew only 0.6% YoY, suggesting margin pressure or higher costs below the operating line. High capital expenditures of $4.55B are limiting free cash flow to $2.60B.
What is TXN's revenue and growth?
Texas Instruments Inc. reported revenue of $4.8B.
Does TXN pay dividends?
Texas Instruments Inc. pays dividends, with $1,291.0M distributed to shareholders in the trailing twelve months.
Where can I find TXN SEC filings?
Official SEC filings for Texas Instruments Inc. (CIK: 0000097476) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TXN's EPS?
Texas Instruments Inc. has a diluted EPS of $1.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TXN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Texas Instruments Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TXN stock overvalued or undervalued?
Valuation metrics for TXN: ROE of 9.2% (sector avg: 22%), net margin of 32.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy TXN stock in 2026?
Our dual AI analysis gives Texas Instruments Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TXN's free cash flow?
Texas Instruments Inc.'s operating cash flow is $1.5B, with capital expenditures of $676.0M. FCF margin is 17.5%.
How does TXN compare to other Technology stocks?
Vs Technology sector averages: Net margin 32.0% (avg: 18%), ROE 9.2% (avg: 22%), current ratio 4.46 (avg: 2.5).