One-glance verdict
Overvalued
$104.49 our estimate vs market $258.44
Wall Street consensus: $324.71 (210.8% higher than our fair-value estimate)
147% above our estimate, beyond the bull case
Fundamentals snapshot
Texas Instruments Incorporated
TXN · NMS · Technology · Semiconductors
Current price
$258.44
52-week range
$152.73 - $334.03
Market cap
$236.02B
Balance sheet
Watch
11.31x Adequate
Net debt $7.05B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 10.0% last year.
- Reward Returns 35.2% on equity, ahead of 83% of its peers.
- Risk Stock trades 43.2% above its 5-year average P/E.
- Risk Operating margin compressed from 51.9% to 42.6% over 3 years.
What this company does
Texas Instruments Incorporated
Texas Instruments manufactures and sells semiconductors, the tiny electronic chips that power everything from cars and factory machines to your calculator. The company makes most of its money from a special type of chip called 'analog', which helps devices manage battery life and interact with the real world, making them critical components for the automotive and industrial sectors.
How the company got here
Texas Instruments started in 1930 as a company that helped find oil. A major turning point came in 1958 when a TI engineer, Jack Kilby, invented the integrated circuit, which is the foundation of modern electronics. This invention shifted the company's focus to semiconductors (the building blocks of electronic devices). Over the years, it became famous for making the first transistor radio and popular handheld calculators. Through key acquisitions and a focus on developing a vast portfolio of chips, the company has become a global leader in the semiconductor industry.
What it actually does
Texas Instruments designs and manufactures tiny electronic components called semiconductors, or chips. These chips are the 'brains' and essential components inside a huge variety of electronic devices you use every day. Think of them in your car, your smartphone, your home appliances, and even in large factory equipment. Essentially, if a product is electronic, it likely contains chips that manage power, process information, or sense things about the real world, and there's a good chance some of those chips are made by Texas Instruments.
Analog
This is the company's largest and most important business, making up the vast majority of its revenue. Analog chips take real-world signals like sound, temperature, or pressure and convert them into digital signals that electronics can understand. They also manage power within devices, like regulating a battery. Customers who make everything from electric vehicles to factory robots buy these chips to handle power and interact with the physical world.
Embedded Processing
This segment produces the digital 'brains' for many kinds of electronic equipment. These processors are designed to handle specific computing tasks, like the chip in your smart thermostat that maintains the temperature or the one in a car's braking system. Companies buy these chips to give their products specific control and computing functions. While smaller than the Analog business, it's a significant part of the company and often works together with analog chips in the same devices.
Other
This is the smallest part of the company and includes well-known products like calculators and DLP® technology, which is used in digital projectors for things like movie theaters and presentations. While these products are not the main focus for future growth, they still contribute to the company's overall profits. The customers for these products range from students and teachers buying calculators to manufacturers of projection equipment.
What management is betting on now
The company's main strategy is to increase its own manufacturing capabilities, aiming to produce most of its chips in-house. This gives them more control over their supply chain (the process of making and delivering products) and helps lower costs. Management is heavily focused on the industrial and automotive markets, as these areas are using more and more chips in their products, from electric cars to automated factories. By investing in these areas and its own factories, the company aims to reliably supply its customers and grow its free cash flow (cash left after paying for operating costs and large equipment purchases) over the long term.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$416.00M
FY2024 Q4
$806.00M
FY2025 Q1
$-274.00M
FY2025 Q2
$555.00M
FY2025 Q3
$993.00M
FY2025 Q4
$1.33B
FY2026 Q1
$844.00M
FY2026 Q2
$2.19B
Revenue
$5.46B
Net income
$1.98B
Diluted EPS
2.14
Operating cash flow
$2.70B
Free cash flow
$2.19B
Fetching…
Sources
Revenue
$4.83B
Net income
$1.54B
Diluted EPS
1.68
Operating cash flow
$1.52B
Free cash flow
$844.00M
Fetching…
Sources
Revenue
$4.42B
Net income
$1.16B
Diluted EPS
1.28
Operating cash flow
$2.25B
Free cash flow
$1.33B
Fetching…
Sources
Revenue
$4.74B
Net income
$1.36B
Diluted EPS
1.48
Operating cash flow
$2.19B
Free cash flow
$993.00M
Fetching…
Sources
Revenue
$4.45B
Net income
$1.29B
Diluted EPS
1.41
Operating cash flow
$1.86B
Free cash flow
$555.00M
Fetching…
Sources
Revenue
$4.07B
Net income
$1.18B
Diluted EPS
1.28
Operating cash flow
$849.00M
Free cash flow
$-274.00M
Fetching…
Sources
Revenue
$4.01B
Net income
$1.21B
Diluted EPS
1.31
Operating cash flow
$2.00B
Free cash flow
$806.00M
Fetching…
Sources
Revenue
$4.15B
Net income
$1.36B
Diluted EPS
1.47
Operating cash flow
$1.73B
Free cash flow
$416.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $104.49 vs current price $258.44
Wall Street consensus is the average analyst price target: $324.71 (210.8% higher than our fair-value estimate).
Our most-likely fair value is $104.49 a share — about 59.6% below today's price of $258.44, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $7.1B. Interest coverage 11.3x.
Net debt
$7.05B
Interest coverage
11.31x
Texas Instruments Incorporated's profit covers its interest bill about 11.3 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
TXN
BASELINE
Texas Instruments Incorporated
Total debt $14.05B Interest coverage 11.31x This is the baseline the peer rows are being compared against.
Total debt $9.16B Interest coverage 9.45x -16% vs TXN Carries about 1.2x less debt cushion than TXN.
Total debt $10.98B Interest coverage 6.51x -42% vs TXN Carries about 1.7x less debt cushion than TXN.
Total debt $5.40B Interest coverage 2.46x -78% vs TXN Carries about 4.6x less debt cushion than TXN.
Total debt $4.71B Interest coverage 10.59x -6% vs TXN Has roughly the same debt cushion as TXN.
Total debt $4.23B Interest coverage 5.87x -48% vs TXN Carries about 1.9x less debt cushion than TXN.
What you should know
The case for and against TXN
3 Rewards
2 Risks
Rewards
-
Revenue grew 10.0% last year.
-
Returns 35.2% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 43.2% above its 5-year average P/E.
-
Operating margin compressed from 51.9% to 42.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
39.22x
Forward P/E
24.28x
P/B
13.10x
P/S
12.13x
EV/EBITDA
25.53x
PEG ratio
0.92x
Profitability
How much profit each dollar creates
Gross margin
58.3%
Operating margin
42.6%
Net margin
31.1%
ROE
35.2%
ROA
13.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
4.86x
Quick ratio
3.25x
Total debt
$14.05B
Total cash
$7.00B
Growth
How the business has been compounding
Revenue TTM
$19.45B
Revenue 5Y CAGR
-0.9%
EPS TTM
6.59
EPS 5Y CAGR
-16.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$8.67B
Free CF TTM
$2.60B
FCF margin
13.4%
Dividend
Shareholder payout
Yield
2.2%
Payout ratio
85.4%
Last ex-div date
2026-07-31