Texas Instruments (TXN) AI Stock Analysis

• Market Cap: $165.86B
• Dividend Yield: 3.01%
• Average Volume (3M): 7.72M
• Price to Earnings (P/E): 33.3
• Beta (1Y): 1.15
• Revenue Growth: 9.90%
• EPS Growth: 1.65%
• Country: US
• Employees: 34,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.48
• Shares Outstanding: 908,623,050
• 10 Day Avg. Volume: 6,641,573
• 30 Day Avg. Volume: 7,719,569
• PEG Ratio: -1.34
• Price to Book (P/B): 10.12
• Price to Sales (P/S): 10.93
• P/FCF Ratio: 114.16
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 10.24
• Enterprise Value/Gross Profit: 17.81
• Enterprise Value/Ebitda: 21.81
• 1Y Price Target: $192.55
• Price Target Upside: 5.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $208.00 ▲(13.95% Upside)

Texas Instruments' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical indicators suggest caution due to potential overbought conditions, the company's robust dividend yield and strategic focus on growth provide a solid foundation for future performance.

Positive Factors

Revenue Growth

Texas Instruments' strong revenue growth, particularly in Analog and Embedded Processing segments, indicates robust demand and effective market positioning, supporting long-term business expansion.

Strong Free Cash Flow

The substantial increase in free cash flow highlights Texas Instruments' strong cash generation capabilities, providing financial flexibility for strategic investments and shareholder returns.

Dividend Increase

Consistent dividend increases reflect Texas Instruments' commitment to returning value to shareholders and confidence in its long-term financial stability and profitability.

Negative Factors

Gross Margin Decline

The decline in gross margin suggests potential pressure on profitability, which could affect long-term financial performance if not addressed through cost management or pricing strategies.

Restructuring Charges

Restructuring charges and plant closures indicate operational adjustments that may disrupt production and incur costs, impacting short-term profitability and operational efficiency.

Moderate Market Recovery

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

Texas Instruments Business Overview & Revenue Model

Company Description

Texas Instruments (TXN) is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures a wide range of analog and embedded processing products. The company operates primarily within two segments: Analog and Embedded Processing. Texas Instruments is renowned for its innovative technology solutions that serve various industries, including automotive, industrial, communications, and consumer electronics. Core products include integrated circuits, microcontrollers, digital signal processors, and other semiconductor devices that facilitate the functioning of electronic systems.

How the Company Makes Money

Texas Instruments generates revenue primarily through the sale of semiconductor products, which are used in a vast array of electronic devices. The company's revenue model is based on the design, manufacturing, and sale of analog and embedded processing chips, which contribute significantly to its earnings. Key revenue streams include the Analog segment, which accounts for the majority of sales, driven by the demand for power management and signal processing components. The Embedded Processing segment also contributes to revenue through microcontrollers and processors used in various applications. Texas Instruments benefits from long-term relationships with major customers in multiple industries, which provide consistent and recurring revenue. Additionally, the company invests in research and development to innovate and introduce new products that meet evolving market needs, further enhancing its revenue potential.

Texas Instruments Financial Statement Overview

Summary

Texas Instruments demonstrates strong financial health with robust profitability, a stable balance sheet, and solid cash flow generation. The company is well-positioned in the semiconductor industry, though it must continue to manage its leverage and sustain revenue growth to maintain its financial strength.

Income Statement

Texas Instruments shows strong profitability with a consistent gross profit margin above 57% and a net profit margin around 29% in the TTM. Revenue growth has been positive recently, indicating a recovery from previous declines. The EBIT and EBITDA margins are robust, reflecting efficient operations. However, the company experienced revenue declines in prior years, which could pose a risk if not managed well.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.84 in the TTM, indicating a balanced approach to leverage. Return on equity is strong at over 30%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the increasing debt levels over the years warrant monitoring.

Cash Flow

Cash flow metrics are favorable, with a significant free cash flow growth of 38.39% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is over 2, suggesting good cash conversion. The free cash flow to net income ratio is improving, though it remains moderate, indicating room for further enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.27B	15.64B	17.52B	20.03B	18.34B	14.46B
Gross Profit	9.93B	9.09B	11.02B	13.77B	12.38B	9.27B
EBITDA	8.11B	7.54B	9.01B	11.22B	10.06B	7.20B
Net Income	5.04B	4.80B	6.51B	8.75B	7.77B	5.59B
Balance Sheet
Total Assets	35.00B	35.51B	32.35B	27.21B	24.68B	19.35B
Cash, Cash Equivalents and Short-Term Investments	5.19B	7.58B	8.57B	9.07B	9.74B	6.57B
Total Debt	14.05B	13.60B	11.22B	9.08B	8.21B	7.12B
Total Liabilities	18.38B	18.61B	15.45B	12.63B	11.34B	10.16B
Stockholders Equity	16.63B	16.90B	16.90B	14.58B	13.33B	9.19B
Cash Flow
Free Cash Flow	2.08B	1.50B	1.35B	5.92B	6.29B	5.49B
Operating Cash Flow	6.90B	6.32B	6.42B	8.72B	8.76B	6.14B
Investing Cash Flow	-149.00M	-3.20B	-4.36B	-3.58B	-4.09B	-922.00M
Financing Cash Flow	-6.03B	-2.88B	-2.14B	-6.72B	-3.14B	-4.55B

Texas Instruments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 182.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 182.54 is above the 20-day moving average (MA) of 164.65, above the 50-day MA of 169.06, and above the 200-day MA of 179.97, indicating a bullish trend. The MACD of 3.23 indicates Negative momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 92.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXN.

Texas Instruments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	80 Outperform	$187.22B	34.86	23.34%	2.01%	13.66%	-45.40%
TXN	77 Outperform	$165.86B	33.30	29.60%	3.01%	9.90%	1.65%
MU	77 Outperform	$266.96B	31.25	17.20%	0.19%	48.85%	997.29%
ADI	77 Outperform	$137.73B	61.62	6.57%	1.41%	16.89%	39.29%
ARM	69 Neutral	$149.93B	181.47	12.37%	―	24.81%	27.33%
INTC	66 Neutral	$197.53B	3,906.60	0.19%	―	-1.49%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Texas Instruments Corporate Events

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.

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.