Texas Instruments (TXN)
NASDAQ:TXN
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Texas Instruments
(NASDAQ:TXN)
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Rating:70Outperform
Price Target:
$214.00
▼(-0.46% Downside)
Action:ReiteratedDate:01/29/26
TXN scores well on business quality and earnings/cash-generation trends, reinforced by a cautiously positive outlook and improving free cash flow dynamics as CapEx moderates. The score is held back by weak free-cash-flow conversion versus net income, increased leverage, and a technically overbought setup alongside a high P/E valuation.
Positive Factors
Profitability
Sustained high gross and net margins reflect durable pricing power and product mix strength in analog and embedded segments. Such margin levels support long-term operating cash generation, fund R&D and capital projects, and provide resilience through industry cycles over the next several quarters.
Negative Factors
Weak FCF Conversion
Low conversion of accounting earnings into free cash flow limits the company’s ability to rapidly de-lever or expand shareholder returns despite strong reported profits. Elevated capex and working-capital needs have compressed FCF conversion, reducing financial flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
Sustained high gross and net margins reflect durable pricing power and product mix strength in analog and embedded segments. Such margin levels support long-term operating cash generation, fund R&D and capital projects, and provide resilience through industry cycles over the next several quarters.
Read all positive factors
Texas Instruments (TXN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$195.73B
Dividend Yield3.11%
Average Volume (3M)6.11M
Price to Earnings (P/E)31.5
Beta (1Y)1.13
Revenue Growth9.90%
EPS Growth1.65%
CountryUS
Employees34,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.27
Shares Outstanding910,463,400
10 Day Avg. Volume5,059,689
30 Day Avg. Volume6,111,672
Financial Highlights & Ratios
PEG Ratio7.87
Price to Book (P/B)9.69
Price to Sales (P/S)8.92
P/FCF Ratio60.58
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue11.74
Enterprise Value/Gross Profit20.60
Enterprise Value/Ebitda25.17
Forecast
1Y Price Target
$224.15Price Target Upside4.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)6.43
Revenue Forecast (FY)$19.58B
Texas Instruments Business Overview & Revenue Model
Company Description
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 po...
How the Company Makes Money
Texas Instruments primarily makes money by selling semiconductors, with revenue concentrated in two main product lines: (1) Analog semiconductors (e.g., power management and signal chain devices) and (2) Embedded Processing products (e.g., microco...
Texas Instruments Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business unit, revealing which segments are contributing most to sales and where there might be potential for expansion or risk.
Breaks down revenue by business unit, revealing which segments are contributing most to sales and where there might be potential for expansion or risk.
Data provided by:
The Fly
The FlyTexas Instruments Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented strong year-over-year growth, robust cash generation, large free cash flow improvement, successful capital investment execution (notably in manufacturing/fab build-outs), and substantial data center, industrial and automotive momentum. Offsetting factors include sequential revenue and margin pressure, notable weakness in personal electronics and communications, a modest EPS hit from a goodwill impairment, higher inventory days, and a $14B debt balance. Management guided cautiously but positively for Q1 with above-seasonal revenue guidance driven by bookings and data center strength, while keeping capital allocation discipline.Positive Updates
Revenue Growth Year-over-Year
Q4 revenue of $4.4B, up 10% year-over-year.
Negative Updates
Sequential Revenue Decline
Q4 revenue decreased 7% sequentially versus Q3.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth Year-over-Year
Q4 revenue of $4.4B, up 10% year-over-year.
Read all positive updates
Company Guidance
TI guided Q1 2026 revenue of $4.32–4.68 billion and EPS of $1.22–1.48, with an expected 2026 effective tax rate of about 13–14%; they expect 2026 capital expenditures of $2–3 billion and depreciation of $2.2–2.4 billion (with 2027 rising more slowly), OPEX up low single digits versus Q4 (TTM OPEX $3.9B or 22% of revenue), and said gross margin/loadings will be managed based on demand. For context, Q4 revenue was $4.4B, gross profit $2.5B (56% of revenue, down 150 bps sequentially), operating profit $1.5B (33%), net income $1.2B ($1.27/share, including a $0.06 EPS hit), cash from ops Q4 $2.3B (2025 $7.2B), CapEx Q4 $925M (2025 $4.6B), free cash flow 2025 $2.9B (17% of revenue, +96% YoY), cash & short-term investments $4.9B, total debt $14B (4% weighted coupon), inventory $4.8B (222 days, +7 days), Q4 dividends $1.3B and buybacks $403M, dividend per share $1.42 (up 4%, 22nd consecutive year), $670M CHIPS Act cash benefit in 2025, up to $1.6B direct funding expected, and a 35% ITC effective 1/1/2026.Texas Instruments Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.68B | 15.64B | 17.52B | 20.03B | 18.34B |
| Gross Profit | 10.08B | 9.09B | 11.02B | 13.77B | 12.38B |
| EBITDA | 8.25B | 7.54B | 9.01B | 11.22B | 10.06B |
| Net Income | 5.00B | 4.80B | 6.51B | 8.75B | 7.77B |
Balance Sheet | |||||
| Total Assets | 34.59B | 35.51B | 32.35B | 27.21B | 24.68B |
| Cash, Cash Equivalents and Short-Term Investments | 4.88B | 7.58B | 8.57B | 9.07B | 9.74B |
| Total Debt | 15.39B | 15.04B | 12.27B | 9.50B | 8.21B |
| Total Liabilities | 18.31B | 18.61B | 15.45B | 12.63B | 11.34B |
| Stockholders Equity | 16.27B | 16.90B | 16.90B | 14.58B | 13.33B |
Cash Flow | |||||
| Free Cash Flow | 2.60B | 1.50B | 1.35B | 5.92B | 6.29B |
| Operating Cash Flow | 7.15B | 6.32B | 6.42B | 8.72B | 8.76B |
| Investing Cash Flow | -1.44B | -3.20B | -4.36B | -3.58B | -4.09B |
| Financing Cash Flow | -5.69B | -2.88B | -2.14B | -6.72B | -3.14B |
Texas Instruments Technical Analysis
Positive
214.98
Price Trends
206.66
Positive
191.73
Positive
188.48
Positive
Market Momentum
0.97
Negative
66.83
Neutral
96.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXN, the sentiment is Positive. The current price of 214.98 is above the 20-day moving average (MA) of 194.71, above the 50-day MA of 206.66, and above the 200-day MA of 188.48, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 96.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXN.
Texas Instruments Risk Analysis
Texas Instruments disclosed 18 risk factors in its most recent earnings report. Texas Instruments reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Texas Instruments Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $159.08B | 130.14 | 11.03% | ― | 24.81% | 27.33% | |
75 Outperform | $475.35B | 8.48 | 40.84% | 0.20% | 45.43% | 203.31% | |
73 Outperform | $171.54B | 45.73 | 7.92% | 1.43% | 16.89% | 39.29% | |
70 Outperform | $195.73B | 31.53 | 30.44% | 3.11% | 9.90% | 1.65% | |
70 Outperform | $136.31B | 15.44 | 21.63% | 2.01% | 10.25% | -48.23% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $309.90B | -658.38 | -0.26% | ― | -0.47% | 98.20% |
* Technology Sector Average
TXN
Texas Instruments
214.98
71.90
50.25%
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Texas Instruments Corporate Events
Executive/Board Changes
Texas Instruments Announces Forthcoming Senior Leadership Transition
Neutral
Mar 25, 2026
Texas Instruments Inc. said that Senior Vice President Hagop Kozanian plans to retire from the company, with his departure effective Aug. 31, 2026. The scheduled exit of a long-serving senior executive signals an upcoming leadership transition at ...
Business Operations and StrategyRegulatory Filings and Compliance
Texas Instruments Adopts New Delaware-Focused Forum Selection Bylaw
Neutral
Feb 6, 2026
On February 3, 2026, Texas Instruments’ Board of Directors approved amendments to the company’s By-Laws to introduce a forum selection provision that centralizes the handling of specific legal disputes. Under the new rules, certain sta...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.