TXN
TEXAS INSTRUMENTS INC
Technology • CIK: 0000097476
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Market Cap
$157.70B
P/E (TTM)
31.7x
Rev Growth (TTM)
+13.0%
Net Margin (TTM)
28.1%
FCF Yield (TTM)
1.7%
FCF Margin (TTM)
14.7%
Filing Intelligence
6.0/10
10-K filed Feb 6, 2026 • FY 2025
Executive Summary
The company experienced revenue growth driven by demand in its core Analog and Embedded Processing segments, despite macroeconomic headwinds, and is strategically emphasizing growth in industrial,...
Key Concerns
- ●The company experienced revenue growth driven by demand in its core Analog and Embedded Processing segments, despite macroeconomic...
- ●The 'Other' segment contains a mix of charges and gains/losses, potentially masking the true performance of core operations and making...
- ●Purchase commitments exist for software licenses and supplier arrangements.
Cash Flow Health
Free Cash Flow6/8 positive
TTM$2.6B
Q4 '25
$1.3B+34%
Q3 '25
$993M+79%
FCF Margin
TTM14.7%
Q4 '2530.0%+43%
Sector: 9.1%Above Avg
OCF Margin40.5%
OCF/NI1.44x
CapEx Coverage1.6x
FCF Yield1.7%
FCF Growth (2Y)-24%
Cash Conversion Cycle
228 days
DSO: 40+DIO: 228−DPO: 40
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM4.1%
Div Yield3.2%
+Buyback (TTM)0.9%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)3.2%
FCF Payout Ratio192.0%
Free Cash Flow (TTM)$2.6B
Stock Repurchases (TTM)$1.5B
Capital Return / FCF248.8%
Est. Dividends Paid (TTM)$5.0B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
17.5%
Stable
+0.0% YoY+2.9%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
29.8%
8Q: 30.1%
Asset Turnover
0.51x
8Q: 0.47x
Leverage (1+D/E)
1.86x
D/E: 0.86x
DuPont: 28.3% ≈ 17.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.46x
8Q:1.43x
+6.1%
Invested Cap Turn
0.64x
8Q:0.58x
+14.3%
CapEx Intensity
16.4%
8Q:16.9%
CapEx/Depreciation
2.37x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $17.7B | $4.4B↓6.7% | $4.7B↑6.6% | $4.4B↑9.3% | $4.1B↑1.5% | $4.0B↓3.5% | $4.2B↑8.6% | $3.8B↑4.4% | $3.7B |
Operating Income | $6.0B | $1.5B↓11.4% | $1.7B↑6.4% | $1.6B↑18.1% | $1.3B↓3.8% | $1.4B↓11.4% | $1.6B↑24.5% | $1.2B↓3.0% | $1.3B |
Net Income | $5.0B | $1.2B↓14.7% | $1.4B↑5.3% | $1.3B↑9.8% | $1.2B↓2.2% | $1.2B↓11.5% | $1.4B↑20.9% | $1.1B↑1.9% | $1.1B |
Operating Cash Flow | $7.2B | $2.3B↑2.9% | $2.2B↑17.7% | $1.9B↑119.1% | $849.0M↓57.5% | $2.0B↑15.4% | $1.7B↑10.2% | $1.6B↑54.5% | $1.0B |
Free Cash Flow | $2.6B | $1.3B↑33.8% | $993.0M↑78.9% | $555.0M↑302.6% | $-274.0M↓134.0% | $806.0M↑93.8% | $416.0M↓17.9% | $507.0M↑319.5% | $-231.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
31.7x
Volatile
8Q: 140.8x-1739%
Valuation Lenses
Earnings
31.7x
vs – sector
Cash Flow
63.8x
EV/FCF vs –
Growth-Adj
2.4xPEG
Expensive for growth
Quality-Adj
1.8P/E per %ROIC
ROIC: 17.5%
Shareholder Returns
Dividend
3.2%
Buyback
0.9%
Total Yield
4.1%
Market Cap$157.70B
EV$165.95B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
98/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
30.1%
8Q:–
Return on Invested Capital (ROIC)Top 25%
17.5%
8Q:–
+2.9%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 29.8%
Asset Turnover: 0.51x
Earnings Quality
Cash Conversion
1.44x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin57.0%
Capital Efficiency
Invested Capital Turnover0.64x
Working Capital
Cash Conversion Cycle228 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
53/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
13.0%
OpInc Growth YoY
7.0%
EPS Growth YoY
4.6%
FCF 3Y CAGR
-24.0%
Growth Quality Analysis
⚠Working Capital Drag: FCF growth lagging revenue by 37.0%
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
57.0%
Operating
34.1%
Top 25% in sector
Net
28.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-13.4 pts
FCF: 14.7% | Net: 28.1%
FCF margin lags net margin by 13.4 pts
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $9.17B
Interest Coverage
–
Balance sheet risk & solvency analysis