📊 TXN Key Takeaways
Is Texas Instruments Inc. (TXN) a Good Investment?
Texas Instruments demonstrates exceptional fundamental strength with industry-leading profitability margins (57% gross, 34% operating, 28% net) and robust cash generation (7.2B operating CF, 2.6B FCF). The company maintains fortress-like financial health with strong liquidity (4.35x current ratio), moderate leverage (0.86x debt/equity), and consistent revenue growth (+13% YoY) coupled with improving earnings (+4.8% EPS growth), indicating sustainable operational excellence.
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
- Outstanding profitability with 28.3% net margin and 34.1% operating margin, well above semiconductor sector averages
- Strong cash generation with 7.2B operating cash flow and 14.7% FCF margin, demonstrating quality of earnings
- Excellent returns on capital with 30.7% ROE and 14.5% ROA, indicating efficient asset utilization
- Healthy balance sheet with 4.35x current ratio, 2.83x quick ratio, and manageable 0.86x debt/equity ratio
- Consistent growth momentum with 13% revenue growth and 4.8% EPS growth despite macro headwinds
- 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
- High long-term debt of 14.0B relative to equity (16.3B), limiting financial flexibility if business deteriorates
- Capital intensity with 4.5B capex (25.4% of operating cash flow) required to maintain competitive position in semiconductor industry
- Semiconductor sector cyclicality and inventory correction risks that could impact future revenue growth
- Significant insider trading activity (32 Form 4 filings in 90 days) warrants monitoring for sentiment signals
- 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 cash flow trend and free cash flow sustainability above 2.5B threshold
- Gross margin maintenance at 57%+ level as indicator of pricing power and operational efficiency
- Revenue growth deceleration or acceleration relative to 13% baseline in coming quarters
- Debt/equity ratio trend and management's capital allocation priorities
- Capital expenditure requirements relative to revenue growth to assess margin expansion potential
- 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 4.35x 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. appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $4.5B | $1.7B | $1.87 |
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
❓ 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 (STRONG BUY) and ChatGPT (BUY) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXN's key strengths?
Claude: Outstanding profitability with 28.3% net margin and 34.1% operating margin, well above semiconductor sector averages. Strong cash generation with 7.2B operating cash flow and 14.7% FCF margin, demonstrating quality of earnings. 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: High long-term debt of 14.0B relative to equity (16.3B), limiting financial flexibility if business deteriorates. Capital intensity with 4.5B capex (25.4% of operating cash flow) required to maintain competitive position in semiconductor industry. 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 $17.7B.
Does TXN pay dividends?
Texas Instruments Inc. pays dividends, with $4,999.0M 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 $5.45.
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 April 2026, Texas Instruments Inc. has a BUY rating with 85% 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 30.7% (sector avg: 22%), net margin of 28.3% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
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 $7.2B, with capital expenditures of $4.6B. FCF margin is 14.7%.
How does TXN compare to other Technology stocks?
Vs Technology sector averages: Net margin 28.3% (avg: 18%), ROE 30.7% (avg: 22%), current ratio 4.35 (avg: 2.5).
Why is TXN's return on equity (ROE) so high?
Texas Instruments Inc. has a return on equity of 30.7%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 28.3% net margin.