|TXN Overview
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%

LATEST EARNINGS

Q4 2025
17 days ago
View source
Revenue
Net Income
EPS
  • Revenue increased 10% year-over-year to $4.42 billion.
  • Operating profit increased 7% year-over-year to $1.47 billion.
  • Cash flow from operations for the trailing 12 months was $7.2 billion, a 13% increase year-over-year.
  • Free cash flow for the trailing 12 months was $2.9 billion, a 96% increase year-over-year.

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: 14.5%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: 228DPO: 40

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM0.9%
Div Yield0.0%
+
Buyback (TTM)0.9%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$2.6B
Stock Repurchases (TTM)$1.5B
Capital Return / FCF248.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
21.3%
Stable
+0.1% YoY+2.2%
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%21.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.46x
8Q:1.43x
Flat
Invested Cap Turn
0.71x
8Q:0.72x
-3.2%
CapEx Intensity
18.4%
8Q:20.6%
CapEx/Depreciation
2.37x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$17.7B
$4.4B6.7%
$4.7B6.6%
$4.4B9.3%
$4.1B1.5%
$4.0B3.5%
$4.2B8.6%
$3.8B4.4%
$3.7B
Operating Income
$6.0B
$1.5B11.4%
$1.7B6.4%
$1.6B18.1%
$1.3B3.8%
$1.4B11.4%
$1.6B24.5%
$1.2B3.0%
$1.3B
Net Income
$5.0B
$1.2B14.7%
$1.4B5.3%
$1.3B9.8%
$1.2B2.2%
$1.2B11.5%
$1.4B20.9%
$1.1B1.9%
$1.1B
Operating Cash Flow
$7.2B
$2.3B2.9%
$2.2B17.7%
$1.9B119.1%
$849.0M57.5%
$2.0B15.4%
$1.7B10.2%
$1.6B54.5%
$1.0B
Free Cash Flow
$2.6B
$1.3B33.8%
$993.0M78.9%
$555.0M302.6%
$-274.0M134.0%
$806.0M93.8%
$416.0M17.9%
$507.0M319.5%
$-231.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
31.7x
Valuation Lenses
Earnings
31.7x
vs sector
Cash Flow
128.8x
EV/FCF vs
Growth-Adj
2.4xPEG
Expensive for growth
Quality-Adj
1.5P/E per %ROIC
ROIC: 21.3%
Shareholder Returns
Dividend
Buyback
0.9%
Total Yield
0.9%
Market Cap$157.70B
EV
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%
30.1%
8Q:
Return on Invested Capital (ROIC)Top 25%
21.3%
8Q:
+2.2%
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 Turnover0.71x

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
Leverage Metrics
Debt-to-Equity
0.86x
Balance sheet risk & solvency analysis