TXN

TEXAS INSTRUMENTS INC

Technology • CIK: 0000097476

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Market Cap
$176.42B
P/E (TTM)
33.1x
Rev Growth (TTM)
+14.9%
Net Margin (TTM)
28.9%
FCF Yield (TTM)
2.1%
FCF Margin (TTM)
20.2%

LATEST EARNINGS

Q1 2026
about 2 months ago
View source
Revenue
$4.83B
+18.6%
Net Income
$1.54B
+31.0%
EPS
$1.68
+31.3%
Gross
58.0% +1.2%
Operating
37.5% +4.9%
Net
32.0% +3.0%
  • Revenue increased 19% year-over-year to $4.83 billion, with growth led by industrial and data center markets.
  • Net income grew 31% year-over-year to $1.55 billion.
  • Diluted earnings per share increased 31% year-over-year to $1.68, including a 5-cent benefit not in original guidance.
  • Cash flow from operations for the trailing 12 months was $7.8 billion, underscoring business model strength.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$3.7B
Q1 '26
$844M-36%
Q4 '25
$1.3B+34%
FCF Margin
TTM20.2%
Q1 '2617.5%-42%
Sector: 8.6%Top 25%
OCF Margin42.4%
OCF/NI1.47x
CapEx Coverage1.9x
FCF Yield2.1%
FCF Growth (2Y)-5%
Cash Conversion Cycle
225 days
DSO: 40+DIO: 222DPO: 37

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.4%
Div Yield2.9%
+
Buyback (TTM)0.6%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.9%
FCF Payout Ratio135.8%
Free Cash Flow (TTM)$3.7B
Stock Repurchases (TTM)$982.0M
Capital Return / FCF162.2%
Est. Dividends Paid (TTM)$5.1B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
18.7%
Stable
+0.0% YoY+4.4%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
30.8%
8Q: 30.3%
Asset Turnover
0.53x
8Q: 0.49x
Leverage (1+D/E)
1.84x
D/E: 0.84x
DuPont: 30.1%18.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.51x
8Q:1.44x
+13.5%
Invested Cap Turn
0.66x
8Q:0.62x
+15.6%
CapEx Intensity
14.8%
8Q:16.6%
CapEx/Depreciation
2.02x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$18.4B
$4.8B9.1%
$4.4B6.7%
$4.7B6.6%
$4.4B9.3%
$4.1B1.5%
$4.0B3.5%
$4.2B8.6%
$3.8B
Operating Income
$6.5B
$1.8B22.7%
$1.5B11.4%
$1.7B6.4%
$1.6B18.1%
$1.3B3.8%
$1.4B11.4%
$1.6B24.5%
$1.2B
Net Income
$5.3B
$1.5B32.9%
$1.2B14.7%
$1.4B5.3%
$1.3B9.8%
$1.2B2.2%
$1.2B11.5%
$1.4B20.9%
$1.1B
Operating Cash Flow
$7.8B
$1.5B32.6%
$2.3B2.9%
$2.2B17.7%
$1.9B119.1%
$849.0M57.5%
$2.0B15.4%
$1.7B10.2%
$1.6B
Free Cash Flow
$3.7B
$844.0M36.5%
$1.3B33.8%
$993.0M78.9%
$555.0M302.6%
$-274.0M134.0%
$806.0M93.8%
$416.0M17.9%
$507.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
33.1x
Volatile
8Q: 139.4x-3081%
High PEG ratio (3.1x) suggests expensive for growth
Valuation Lenses
Earnings
33.1x
vs sector
Cash Flow
49.8x
EV/FCF vs
Growth-Adj
3.1xPEG
Expensive for growth
Quality-Adj
1.8P/E per %ROIC
ROIC: 18.7%
Shareholder Returns
Dividend
2.9%
Buyback
0.6%
Total Yield
3.4%
Market Cap$176.42B
EV$185.20B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
97/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
32.4%
8Q:
Return on Invested Capital (ROIC)Top 25%
18.7%
8Q:
+4.4%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 30.8%
Asset Turnover: 0.53x

Earnings Quality

Cash Conversion

1.47x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin57.3%

Capital Efficiency

Invested Capital Turnover0.66x

Working Capital

Cash Conversion Cycle225 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
62/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
14.9%
OpInc Growth YoY
36.6%
EPS Growth YoY
10.8%
FCF 3Y CAGR
-5.4%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 20.3%

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
57.3%
Operating
35.3%
Top 25% in sector
Net
28.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-8.8 pts
FCF: 20.2% | Net: 28.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $8.95B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.84x
Balance sheet risk & solvency analysis