Texas Instruments (TXN) AI Stock Analysis

• Market Cap: $155.20B
• Dividend Yield: 3.16%
• Average Volume (3M): 7.24M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.17
• Revenue Growth: 9.90%
• EPS Growth: 1.82%
• Country: US
• Employees: 34,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.48
• Shares Outstanding: 909,137,150
• 10 Day Avg. Volume: 7,814,913
• 30 Day Avg. Volume: 7,235,134
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 11.88
• Enterprise Value/Gross Profit: 20.47
• Enterprise Value/Ebitda: 24.91
• 1Y Price Target: $194.81
• Price Target Upside: 13.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 72 Outperform
• Price Target: $201.00 ▲(16.73% Upside)

Texas Instruments shows strong financial performance with robust profitability and cash flow, which is the most significant factor in its score. Technical analysis suggests potential bearish momentum, and the valuation indicates the stock may be overvalued. The earnings call provided a balanced view with strong revenue growth but highlighted some challenges in the semiconductor market.

Positive Factors

Revenue Growth

The strong revenue growth, particularly in analog and embedded processing, indicates robust demand and effective market penetration, supporting long-term business expansion.

Free Cash Flow

The significant increase in free cash flow underscores the company's efficient cash management and ability to fund operations, invest in growth, and return value to shareholders.

Market Position

Strong performance in key markets like industrial and automotive highlights Texas Instruments' competitive advantage and strategic positioning in high-growth sectors.

Negative Factors

Gross Margin Decline

A decline in gross margin suggests potential cost pressures or pricing challenges, which could impact profitability if not addressed through operational efficiencies or pricing strategies.

Restructuring Charges

Restructuring charges and plant closures indicate strategic shifts that may involve short-term costs and disruptions, potentially affecting operational stability and financial performance.

Moderate Market Recovery

A slower recovery in the semiconductor market could limit growth opportunities and revenue potential, necessitating strategic adjustments to maintain competitive positioning.

Texas Instruments Business Overview & Revenue Model

Company Description

Texas Instruments (TXN) is a global semiconductor company headquartered in Dallas, Texas, specializing in the design and manufacturing of a wide range of analog and embedded processing chips. The company operates primarily in two segments: Analog and Embedded Processing. Texas Instruments' core products include operational amplifiers, data converters, microcontrollers, and digital signal processors, which are utilized across various industries such as automotive, industrial, communications, and consumer electronics.

How the Company Makes Money

Texas Instruments generates revenue primarily through the sale of its semiconductor products, with a significant focus on analog and embedded processing solutions. The company's revenue model is based on selling these components to original equipment manufacturers (OEMs) and other customers in diverse markets. Key revenue streams include sales of analog semiconductors, which are essential for power management and signal processing, and embedded processors used in a variety of applications. Texas Instruments also benefits from long-term relationships and partnerships with major technology companies, which provide a stable customer base. Additionally, the company invests in research and development to innovate and expand its product offerings, further enhancing its market position and revenue potential.

Texas Instruments Financial Statement Overview

Summary

Texas Instruments demonstrates solid financial health with strong profitability, reflected in high gross and net profit margins. The balance sheet is robust, and cash flow generation is stable. However, growth has moderated, and the company should focus on enhancing cash flow efficiency.

Income Statement

Texas Instruments shows solid profitability with a TTM gross profit margin of 58.0% and a net profit margin of 30.4%. The revenue growth rate over the recent period is 2.6%, indicating modest growth. The EBIT and EBITDA margins are strong at 34.3% and 44.2%, respectively, showcasing operational efficiency. However, the decline from previous years suggests potential challenges in sustaining growth.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.78, indicating manageable leverage. The return on equity (ROE) stands at 29.7%, reflecting effective use of equity capital. The equity ratio is 48.6%, suggesting a healthy proportion of equity financing. However, the slight increase in total debt over time signals a need for cautious debt management.

Cash Flow

The company maintains a stable cash flow, with an operating cash flow to net income ratio of 1.26, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.30, suggesting room for improvement in free cash flow generation. A slight decline in free cash flow growth rate highlights potential pressures on cash reserves.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.64B	17.52B	20.03B	18.34B	14.46B
Gross Profit	9.09B	11.02B	13.77B	12.38B	9.27B
EBITDA	7.54B	9.01B	11.22B	10.06B	7.20B
Net Income	4.80B	6.51B	8.75B	7.77B	5.59B
Balance Sheet
Total Assets	35.51B	32.35B	27.21B	24.68B	19.35B
Cash, Cash Equivalents and Short-Term Investments	7.58B	8.57B	9.07B	9.74B	6.57B
Total Debt	13.60B	11.22B	9.15B	8.21B	7.12B
Total Liabilities	18.61B	15.45B	12.63B	11.34B	10.16B
Stockholders Equity	16.90B	16.90B	14.58B	13.33B	9.19B
Cash Flow
Free Cash Flow	1.50B	1.35B	5.92B	6.29B	5.49B
Operating Cash Flow	6.32B	6.42B	8.72B	8.76B	6.14B
Investing Cash Flow	-3.20B	-4.36B	-3.58B	-4.09B	-922.00M
Financing Cash Flow	-2.88B	-2.14B	-6.72B	-3.14B	-4.55B

Texas Instruments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 172.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXN, the sentiment is Negative. The current price of 172.19 is below the 20-day moving average (MA) of 178.27, below the 50-day MA of 185.87, and below the 200-day MA of 184.35, indicating a bearish trend. The MACD of -2.89 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TXN.

Texas Instruments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADI	79 Outperform	$118.25B	61.89	5.65%	1.60%	7.08%	18.39%
MU	78 Outperform	$227.06B	26.65	17.20%	0.22%	48.85%	997.29%
QCOM	77 Outperform	$182.17B	16.28	44.62%	2.05%	15.82%	34.20%
ARM	77 Outperform	$179.37B	252.34	11.03%	―	17.84%	63.71%
TXN	72 Outperform	$155.20B	31.42	29.60%	3.16%	9.90%	1.82%
INTC	63 Neutral	$178.03B	―	0.19%	0.33%	-3.72%	-2120.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Texas Instruments Corporate Events

Texas Instruments’ Earnings Call: Growth Amid Challenges

Texas Instruments’ latest earnings call reflects a balanced sentiment, with strong revenue growth and performance in key markets, alongside challenges such as a decline in gross margin and restructuring charges. The company remains committed to shareholder value through dividends, while strategic inventory adjustments indicate preparedness for future scenarios.

Texas Instruments Reports Strong Q3 2025 Earnings

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company specializing in the design, manufacture, and sale of analog and embedded processing chips for various markets, including industrial, automotive, and personal electronics. The company is known for its commitment to making electronics more affordable and reliable through continuous innovation in semiconductor technology.

Texas Instruments Announces Leadership Transition

On October 16, 2025, Texas Instruments announced that Richard K. Templeton will retire as executive chairman and board member by the end of the year. Haviv Ilan, the current president and CEO, will assume the role of chairman, signaling a strategic leadership transition within the company.

The most recent analyst rating on (TXN) stock is a Buy with a $235.00 price target. To see the full list of analyst forecasts on Texas Instruments stock, see the TXN Stock Forecast page.

Texas Instruments Announces Dividend Increase

On September 18, 2025, Texas Instruments announced a planned increase in its dividend, signaling confidence in its financial health and commitment to returning value to shareholders. This move may positively impact the company’s market positioning by reinforcing investor trust and potentially attracting more stakeholders.

The most recent analyst rating on (TXN) stock is a Sell with a $192.00 price target. To see the full list of analyst forecasts on Texas Instruments stock, see the TXN Stock Forecast page.

Texas Instruments Reports Mixed Earnings Amid Strong Revenue Growth

The recent earnings call from Texas Instruments paints a mixed picture for investors. While the company reported strong revenue growth and recovery in several markets, challenges persist, particularly in the automotive sector, compounded by geopolitical uncertainties. Despite the revenue surge, operating expenses have risen, and gross margins are expected to remain flat.

Texas Instruments Reports Strong Q2 2025 Earnings

Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips for various markets, including industrial, automotive, and personal electronics.