Texas Instruments Incorporated (TXN) AI Stock Analysis

Texas Instruments Incorporated is a global semiconductor designer and manufacturer headquartered in Dallas, Texas. The company operates primarily through two segments: Analog and Embedded Processing. The Analog segment offers power management products such as battery management, regulators, and converters, alongside signal chain products like amplifiers and data converters. The Embedded Processing segment provides microcontrollers, digital signal processors, and applications processors for industrial automation, automotive electronics, personal electronics, telecommunications, enterprise systems, and educational calculators. The company also produces Digital Light Processing (DLP) products and application-specific integrated circuits (ASICs), distributing its products via direct sales, distributors, and online channels.

Between FY2021 and FY2025, Texas Instruments saw revenue rise from $18.34B to $20.03B in FY2022, decline to $15.64B in FY2024, and recover to $17.68B in FY2025, representing a 5-year revenue CAGR of 4.1%. Operating margins shifted from 48.8% in FY2021 down to 34.1% in FY2025, while gross margin moved from 67.5% to 57.0%. FY2025 net income reached $5.00B with an EPS of $5.53. In the trailing twelve months ended June 30, 2026, revenue reached $19.45B, with an operating margin of 42.6% and EPS of $6.57. For the latest quarter ended June 30, 2026, quarterly revenue grew 22.8% year-over-year, and quarterly earnings grew 51.8% year-over-year.

As of June 30, 2026, Texas Instruments held $7.00B in cash and short-term investments against total debt of $14.05B, resulting in net debt of $7.05B. Shareholders' equity was $18.01B, with total assets of $35.88B, yielding a debt-to-equity ratio of 0.78 and a current ratio of 4.86. In FY2025, operating cash flow stood at $7.15B and free cash flow was $2.60B. The company deployed cash toward $4.55B in capital expenditures, $5.00B in dividends paid, and $1.48B in share buybacks.

At $276.48, Texas Instruments trades at a trailing P/E of 42.1x, compared to 43.3x for the median of its Nasdaq-100 Technology peers. Its forward P/E stands at 27.5x, above the peer median of 25.1x. The company's EV/EBITDA is 26.5x, below the peer median of 32.8x, while its price-to-sales multiple is 13.0x versus the peer median of 11.9x. TXN shares gained 61.6% over the trailing 12 months, outperforming the S&P 500 (SPY) return of 16.8%, but returned 63.8% over five years compared to 83.0% for the index.

Texas Instruments pays a quarterly dividend with an annualized forward rate of $6.08 per share, representing a 2.20% dividend yield. The payout ratio stands at 86.8%. The company has paid dividends for 55 consecutive years and generated a 5-year annualized dividend growth rate of 8.1%. The last ex-dividend date was October 30, 2026.

Wall Street analysts hold 17 Strong Buy, 2 Buy, 15 Hold, 0 Sell, and 2 Strong Sell ratings on TXN. The mean price target is $324.71, which is 17.4% above the last close of $276.48. For the fiscal year ending December 31, 2026, consensus expectations project revenue of $21.93B and EPS of $8.51, representing 56.2% EPS growth. Texas Instruments beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for October 21, 2026.

This page is an AI-written research summary of Texas Instruments Incorporated (TXN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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