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Texas Instruments
(NASDAQ:TXN)
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Rating:74Outperform
Price Target:
$349.00
▲(51.86% Upside)
Action:Reiterated
Date:04/24/26
The score is driven primarily by strong profitability and recovering fundamentals, reinforced by a positive earnings update and constructive near-term guidance. Technicals also support the stock given a clear uptrend, though overbought signals add near-term risk. The main limiter is valuation (P/E ~28.6) plus balance-sheet and cash-conversion watch items (higher leverage vs prior years and relatively light FCF conversion).
Positive Factors
High profitability and improving cash flow
Sustained high gross and net margins indicate durable pricing power in analog and embedded markets. Strong operating cash flow (~$7.8B TTM) supports continued reinvestment, capacity spending, and shareholder returns, underpinning long-term financial resilience.
Negative Factors
Rising leverage vs prior years
Higher debt-to-equity (~0.95) limits balance-sheet flexibility, increasing interest and refinancing exposure if semiconductor demand softens. Elevated leverage can constrain capital-allocation choices over multiple quarters, impacting buybacks, M&A appetite, and downside cushioning.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and improving cash flow
Sustained high gross and net margins indicate durable pricing power in analog and embedded markets. Strong operating cash flow (~$7.8B TTM) supports continued reinvestment, capacity spending, and shareholder returns, underpinning long-term financial resilience.
Read all positive factors
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 (TXN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$271.58B
Dividend Yield3.11%
Average Volume (3M)8.48M
Price to Earnings (P/E)50.7
Beta (1Y)1.22
Revenue Growth14.89%
EPS Growth10.49%
CountryUS
Employees34,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)5.89
Shares Outstanding910,092,800
10 Day Avg. Volume9,534,917
30 Day Avg. Volume8,483,819
Financial Highlights & Ratios
PEG Ratio7.94
Price to Book (P/B)9.69
Price to Sales (P/S)8.92
P/FCF Ratio60.58
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue15.47
Enterprise Value/Gross Profit26.99
Enterprise Value/Ebitda32.34
Forecast
1Y Price Target
$299.27Price Target Upside30.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
EPS Forecast (FY)7.7
Revenue Forecast (FY)$21.02B
Texas Instruments Business Overview & Revenue Model
Company Description
Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing. The Anal...
How the Company Makes Money
Texas Instruments makes money primarily by selling semiconductors, with revenue largely generated from two reportable product segments: Analog and Embedded Processing. (1) Analog: TI sells analog chips that sense, condition, and manage real-world ...
Texas Instruments Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based revenue and profit growth (notably Data Center +90% YoY, Industrial >30% YoY, revenue +19% YoY), improved margins, and recovering free cash flow, with management well-positioned on capacity and capital allocation. Key risks highlighted include the uncertainty of demand sustainability (referencing a 2025 slow-down), 'Other' segment weakness, regional softness in Automotive (China), ongoing acquisition-related charges and transition impacts, and back-end supply tightness. On balance, positive operational and financial momentum outweighs the flagged risks, though management emphasized watching the next quarter to confirm durability.Positive Updates
Revenue Growth Above Expectations
Revenue of $4.8 billion, up 9% sequentially and up 19% year over year; revenue came in above the top of the guided range for the quarter.
Negative Updates
Decline in 'Other' Segment
Other segment revenue declined 16% from the year-ago quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Above Expectations
Revenue of $4.8 billion, up 9% sequentially and up 19% year over year; revenue came in above the top of the guided range for the quarter.
Read all positive updates
Company Guidance
Management guided second‑quarter revenue of $5.0–$5.4 billion (midpoint $5.2B, roughly +8% sequential and called “slightly above seasonal”) and EPS of $1.77–$2.05 with an expected effective tax rate of about 13%; they warned acquisition‑related charges will continue to affect near‑term results and noted Q1 gross profit was $2.8B (58% of revenue, +210 bps sequential). They reiterated 2026 CapEx of $2–$3B (Q1 CapEx $676M, TTM $4.1B), depreciation guidance of $2.2–$2.4B for 2026, and the ability to modulate wafer starts/assembly & test as demand evolves; management continues to target free cash flow per share upside (TTM FCF $4.4B and ~$8 FCF/share for 2026 is described as highly probable under mid‑ to high‑single‑digit revenue growth). Other key metrics called out: Q1 cash from operations $1.5B (TTM $7.8B), cash & short‑term investments $5.1B, total debt $14B (weighted avg coupon 4%), inventory $4.7B (209 days, down 13 days), and $630M of CHIPS direct funding received to date toward up to $1.6B (TTM CHIPS incentives $965M).Texas Instruments Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.44B | 17.68B | 15.64B | 17.52B | 20.03B | 18.34B |
| Gross Profit | 10.57B | 10.08B | 9.09B | 11.02B | 13.77B | 12.38B |
| EBITDA | 8.82B | 8.25B | 7.54B | 9.01B | 11.22B | 10.06B |
| Net Income | 5.37B | 5.00B | 4.80B | 6.51B | 8.75B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 34.39B | 34.59B | 35.51B | 32.35B | 27.21B | 24.68B |
| Cash, Cash Equivalents and Short-Term Investments | 5.10B | 4.88B | 7.58B | 8.57B | 9.07B | 9.74B |
| Total Debt | 14.05B | 15.39B | 15.04B | 12.27B | 9.50B | 8.21B |
| Total Liabilities | 17.61B | 18.31B | 18.61B | 15.45B | 12.63B | 11.34B |
| Stockholders Equity | 16.78B | 16.27B | 16.90B | 16.90B | 14.58B | 13.33B |
Cash Flow | ||||||
| Free Cash Flow | 3.72B | 2.60B | 1.50B | 1.35B | 5.92B | 6.29B |
| Operating Cash Flow | 7.82B | 7.15B | 6.32B | 6.42B | 8.72B | 8.76B |
| Investing Cash Flow | -2.74B | -1.44B | -3.20B | -4.36B | -3.58B | -4.09B |
| Financing Cash Flow | -4.30B | -5.69B | -2.88B | -2.14B | -6.72B | -3.14B |
Texas Instruments Technical Analysis
Positive
229.82
Price Trends
294.36
Positive
250.07
Positive
213.34
Positive
Market Momentum
1.56
Positive
49.92
Neutral
31.26
Neutral
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 229.82 is below the 20-day moving average (MA) of 301.08, below the 50-day MA of 294.36, and above the 200-day MA of 213.34, indicating a neutral trend. The MACD of 1.56 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.26 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.17T | 23.04 | 40.84% | 0.20% | 166.98% | 701.44% | |
75 Outperform | $359.07B | 401.75 | 11.86% | ― | 22.79% | 12.94% | |
74 Outperform | $271.58B | 50.66 | 32.49% | 3.11% | 14.89% | 10.49% | |
72 Outperform | $189.47B | 57.54 | 9.79% | 1.43% | 29.75% | 83.33% | |
70 Outperform | $191.74B | 19.50 | 40.19% | 2.01% | 5.21% | -6.72% | |
63 Neutral | $638.40B | -204.87 | -2.95% | ― | 1.36% | 86.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TXN
Texas Instruments
298.41
88.70
42.30%
ADI
Analog Devices
388.98
147.08
60.80%
INTC
Intel
127.02
105.14
480.53%
MU
Micron
1,032.28
910.83
749.97%
QCOM
Qualcomm
181.92
22.95
14.44%
ARM
ARM Holdings PLC ADR
337.47
182.84
118.24%
Texas Instruments Corporate Events
Executive/Board Changes
Texas Instruments Names Julie Knecht as New CFO
Neutral
Jun 2, 2026
On May 27, 2026, Texas Instruments’ board appointed long-time executive Julie Knecht as senior vice president and chief financial officer, with the role effective August 1, 2026. She will also continue as chief accounting officer, reflecting...
Executive/Board ChangesShareholder Meetings
Texas Instruments Shareholders Back Board, Reject Governance Change
Positive
Apr 17, 2026
At its April 16, 2026 annual meeting, Texas Instruments stockholders elected all board nominees, including CEO Haviv Ilan and incumbent directors such as Mark Blinn, Janet Clark and Pamela Patsley, each receiving substantial majorities of votes ca...
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.