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TXN

S&P 500
Favorable · 64/100

Texas Instruments

Information Technology
Semiconductors

$332.28

2.9%

Updated Today 6:01 PM ET

Price — Past Year

▲ Up 62.8% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$293.83B

P/E

55.55x

Forward P/E (est.)

50.12x

ROE

32.5%

Revenue Growth

14.9%

EPS Growth

10.8%

Profit Margin

29.1%

FCF Yield

3.0%

Debt / Equity

0.86x

ROIC

15.0%

Interest Coverage

Current Ratio

4.46x

Dividend Yield

1.8%

Implied Growth (rev. DCF)

8.0%

Rating Score

64/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TXN's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TXN trades near $332.28, above its 50-day average ($281.61) and 200-day average ($210.30). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 57 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. TXN's is $14.47 (~4.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month TXN found buyers near $273.88 (support) and sellers near $331.51 (resistance); its 52-week range is $152.73–$331.51. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 2.4× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Texas Instruments (TXN) is a mega-cap company in the Semiconductors industry, part of the Information Technology sector of the S&P 500, with a market value around $293.83B.

In its latest reported year it generated about $17.68B in revenue and $5.00B in net profit.

Our model rates TXN Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

-0.9%

Revenue moved from $18.34B in 2021 to $17.68B in 2025, a -0.9% compound annual growth rate. The most recent year grew a steady 14.9% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

57.0%

Operating Margin

34.1%

Net Margin

28.3%

ROE

32.5%

Texas Instruments keeps about 29.1% of each sales dollar as net profit, with a 57.0% gross margin and 34.1% operating margin. Return on equity is 32.5% and return on invested capital about 15.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

$14.05B

Net Debt

$10.50B

Net Debt / EBITDA

1.74x

Debt / Equity

0.86x

Leverage: debt-to-equity is 0.9x, with a current ratio of 4.5x. That is a moderate, manageable debt load for most businesses. It carries roughly $14.05B of total debt against $3.55B of cash.

Cash Flow Analysis
Research

Operating CF

$7.15B

Free Cash Flow

$2.60B

FCF Margin

14.7%

In the latest year Texas Instruments produced about $7.15B of operating cash flow and $2.60B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

55.55x

P/S

15.97x

P/B

10.23x

EV / EBITDA

TXN trades at 55.5x trailing earnings (about 50.1x on estimated forward earnings), 16.0x sales, and 10.2x book value. Reverse-engineering today's price implies the market expects roughly 8.0% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
55.5xExpensive
Forward P/E
50.1xExpensive
P/S ratio
16.0xExpensive
Revenue growth
14.9%Strong
EPS growth
10.8%Average
Gross margin
57.0%Strong
Net margin
29.1%Strong
ROE
32.5%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How TXN stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), TXN ranks #31 of 72 by our overall rating. It trades at a premium versus the sector on earnings (55.5x P/E vs. 35.6x median) with a higher return on equity (32.5% vs. 25.6%) and slower revenue growth (14.9% vs. 17.4%).

P/E vs sector

55.5x

median 35.6x

ROE vs sector

32.5%

median 25.6%

Growth vs sector

14.9%

median 17.4%

Sector rank

#31

of 72 by rating

CompanyP/ERev Gr.Rating
TXNThis stock55.5x14.9%Favorable· 64
QCOM24.3x5.2%Favorable· 60
ADI65.2x29.8%Favorable· 65
INTC1.4%Weak· 22
AMD174.9x35.0%Neutral· 56
NXPI31.1x2.4%Neutral· 56
MPWR117x23.9%Neutral· 54
MU54.2x85.5%Strong· 76
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianQCOMADIAMDNXPIMPWRMUTXNP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$372.02$612.75

vs. $332.28 today · expected CAGR 2%13%

Metric20262027202820292030
Revenue$20.33B$23.38B$26.89B$30.93B$35.56B
Net income$5.69B$6.55B$7.53B$8.66B$9.96B
EPS$6.26$7.19$8.27$9.51$10.94
Share price (low)$212.71$244.61$281.30$323.50$372.02
Share price (high)$350.34$402.89$463.32$532.82$612.75
CAGR (low–high)-36% / 5%-14% / 10%-5% / 12%-1% / 13%2% / 13%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for TXN:

  • Revenue is growing 14.9% a year, a sign of real demand.
  • High net margins (29.1%) point to pricing power or efficiency.
  • Strong return on equity (32.5%) shows capital is put to work well.
  • Our model's overall read is Favorable (64/100).
Bear Case

The case against TXN:

  • A rich 55.5x earnings multiple prices in a lot of growth.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 55.5x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Texas Instruments is a mega-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 55.5x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.