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%
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: 222−DPO: 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
| Metric | TTM | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $18.4B | $4.8B↑9.1% | $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 |
Operating Income | $6.5B | $1.8B↑22.7% | $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 |
Net Income | $5.3B | $1.5B↑32.9% | $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 |
Operating Cash Flow | $7.8B | $1.5B↓32.6% | $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 |
Free Cash Flow | $3.7B | $844.0M↓36.5% | $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 |
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