olivLaw · US equity research
Texas Instruments Incorporated TXN
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
Texas Instruments (TXN) designs and manufactures analog and embedded processing semiconductors, with revenue of 17.68 bn USD in 2025. Third quarter 2026 revenue rose 28% year on year to 6.06 bn USD. The company has agreed to acquire Silicon Labs, which could change its portfolio once the deal closes.
At the close of 04 Nov 2026, Texas Instruments Incorporated (TXN) stock was 311.49 USD (−0.32% on the day), with market capitalisation 284.6 bn USD, P/E 40.4 on diluted EPS of 7.72 USD over the last 12 months, dividend yield 1.82%, beta 1.39, 52-week range 153.33–332.28 USD. Latest reported quarter (Q3 2026): revenue of 6.1 bn USD (+27.7% YoY), net income of 2.4 bn USD (+77.8% YoY), diluted EPS 2.62 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 65.1
- strong (55–70)
- Bollinger (20, 2)
- 265.34 – 318.38
- in the upper half of the band · %B 0.87 · band width 18.2%
- SMA 50 / 200
- 278.51 / 261.44
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 8.51 / 6.58
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +5.6% | −1.1% | +6.7 pp | — |
| 3 months | +12.2% | −0.5% | +12.6 pp | — |
| 6 months | +7.6% | +4.4% | +3.2 pp | — |
| Year to date | +79.5% | +12.3% | +67.2 pp | — |
| 1 year | +95.5% | +13.5% | +81.9 pp | +43.7% |
| 3 years | +107.3% | +76.4% | +30.9 pp | +138.2% |
| 5 years | +61.1% | +63.7% | −2.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.0 bn | 4.1 bn | 4.4 bn | 4.7 bn | 4.4 bn | 4.8 bn | 5.5 bn | 6.1 bn |
| Cost of revenue | 1.7 bn | 1.8 bn | 1.9 bn | 2.0 bn | 2.0 bn | 2.0 bn | 2.1 bn | 2.2 bn |
| Gross profit | 2.3 bn | 2.3 bn | 2.6 bn | 2.7 bn | 2.5 bn | 2.8 bn | 3.4 bn | 3.9 bn |
| Research & development | 491.0 m | 517.0 m | 527.0 m | 518.0 m | 521.0 m | 510.0 m | 535.0 m | 530.0 m |
| SG&A | 446.0 m | 472.0 m | 485.0 m | 457.0 m | 446.0 m | 464.0 m | 490.0 m | 476.0 m |
| Operating income | 1.4 bn | 1.3 bn | 1.6 bn | 1.7 bn | 1.5 bn | 1.8 bn | 2.3 bn | 2.9 bn |
| Interest expense | 130.0 m | 128.0 m | 133.0 m | 141.0 m | 141.0 m | 141.0 m | 141.0 m | 141.0 m |
| Pre-tax income | 1.4 bn | 1.3 bn | 1.5 bn | 1.6 bn | 1.4 bn | 1.7 bn | 2.2 bn | 2.8 bn |
| Income tax | 154.0 m | 97.0 m | 183.0 m | 220.0 m | 209.0 m | 169.0 m | 258.0 m | 380.0 m |
| Net income | 1.2 bn | 1.2 bn | 1.3 bn | 1.4 bn | 1.2 bn | 1.5 bn | 2.0 bn | 2.4 bn |
| Diluted EPS | 1.31 ≈ | 1.28 | 1.41 | 1.48 | 1.28 ≈ | 1.68 | 2.14 | 2.62 |
| Operating cash flow | 2.0 bn | 849.0 m | 1.9 bn ≈ | 2.2 bn ≈ | 2.3 bn | 1.5 bn | 2.7 bn ≈ | 3.4 bn ≈ |
| Capex | 1.2 bn | 1.1 bn | 1.3 bn ≈ | 1.2 bn ≈ | 925.0 m | 676.0 m | 514.0 m ≈ | 463.0 m ≈ |
| Dividends paid | 1.2 bn | 1.2 bn | 1.2 bn ≈ | 1.2 bn ≈ | 1.3 bn | 1.3 bn | 1.3 bn ≈ | 1.3 bn ≈ |
| Share repurchases | 537.0 m | 653.0 m | 302.0 m ≈ | 119.0 m ≈ | 403.0 m | 158.0 m | 27.0 m ≈ | 48.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 98 percentile of its own 44-quarter history (min 16.2, median 23.9, max 45.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 15.8 bn | 14.4 bn | 14.5 bn | 18.3 bn | 20.0 bn | 17.5 bn | 15.6 bn | 17.7 bn |
| Revenue YoY | +5.5% | −8.9% | +0.5% | +26.9% | +9.2% | −12.5% | −10.7% | +13.0% |
| Net income | 5.6 bn | 5.0 bn | 5.6 bn | 7.8 bn | 8.7 bn | 6.5 bn | 4.8 bn | 5.0 bn |
| Net income YoY | +51.5% | −10.1% | +11.5% | +38.9% | +12.6% | −25.6% | −26.3% | +4.2% |
| Diluted EPS | 5.59 | 5.24 | 5.97 | 8.26 | 9.41 | 7.07 | 5.20 | 5.45 |
| Diluted EPS YoY | +54.8% | −6.3% | +13.9% | +38.4% | +13.9% | −24.9% | −26.4% | +4.8% |
| net % | 35.4% | 34.9% | 38.7% | 42.4% | 43.7% | 37.2% | 30.7% | 28.3% |
| Free cash flow | 6.1 bn | 5.8 bn | 5.5 bn | 6.3 bn | 5.9 bn | 1.3 bn | 1.5 bn | 2.6 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 3.2 bn USD
- Financial debt
- 14.0 bn USD
- Net debt
- 10.8 bn USD
- Equity
- 16.3 bn USD
- Total assets
- 34.6 bn USD
- Debt / equity
- 0.86x
- Current ratio
- 4.35x
- ROE
- 30.1%
- ROA
- 14.3%
- FCF margin
- 14.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 14.5 bn | 18.3 bn | 20.0 bn | 17.5 bn | 15.6 bn | 17.7 bn | SEC (XBRL)· 06 Feb 2026verified |
| Cost of revenue | 5.2 bn | 6.0 bn | 6.3 bn | 6.5 bn | 6.5 bn | 7.6 bn | SEC (XBRL)· 06 Feb 2026verified |
| Gross profit | 9.3 bn | 12.4 bn | 13.8 bn | 11.0 bn | 9.1 bn | 10.1 bn | SEC (XBRL)· 06 Feb 2026verified |
| Research & development | 1.5 bn | 1.6 bn | 1.7 bn | 1.9 bn | 2.0 bn | 2.1 bn | SEC (XBRL)· 06 Feb 2026verified |
| SG&A | 1.6 bn | 1.7 bn | 1.7 bn | 1.8 bn | 1.8 bn | 1.9 bn | SEC (XBRL)· 06 Feb 2026verified |
| Operating income | 5.9 bn | 9.0 bn | 10.1 bn | 7.3 bn | 5.5 bn | 6.0 bn | SEC (XBRL)· 06 Feb 2026verified |
| Interest expense | 190.0 m | 184.0 m | 214.0 m | 353.0 m | 508.0 m | 543.0 m | SEC (XBRL)· 06 Feb 2026verified |
| Pre-tax income | 6.0 bn | 8.9 bn | 10.0 bn | 7.4 bn | 5.5 bn | 5.7 bn | SEC (XBRL)· 06 Feb 2026verified |
| Income tax | 422.0 m | 1.2 bn | 1.3 bn | 908.0 m | 654.0 m | 709.0 m | SEC (XBRL)· 06 Feb 2026verified |
| Net income | 5.6 bn | 7.8 bn | 8.7 bn | 6.5 bn | 4.8 bn | 5.0 bn | SEC (XBRL)· 06 Feb 2026verified |
| Diluted EPS | 5.97 | 8.26 | 9.41 | 7.07 | 5.20 | 5.45 | SEC (XBRL)· 06 Feb 2026verified |
| Weighted average diluted shares | 933.0 m | 936.0 m | 926.0 m | 916.0 m | 919.0 m | 913.0 m | SEC (XBRL)· 06 Feb 2026verified |
| Dividend per share | 3.72 | 4.21 | 4.69 | 5.02 | 5.26 | 5.50 | SEC (XBRL)· 06 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.1 bn | 4.6 bn | 3.1 bn | 3.0 bn | 3.2 bn | 3.2 bn | SEC (XBRL)· 06 Feb 2026verified |
| Receivables | 1.4 bn | 1.7 bn | 1.9 bn | 1.8 bn | 1.7 bn | 2.0 bn | SEC (XBRL)· 06 Feb 2026verified |
| Inventories | 2.0 bn | 1.9 bn | 2.8 bn | 4.0 bn | 4.5 bn | 4.8 bn | SEC (XBRL)· 06 Feb 2026verified |
| Current assets | 10.2 bn | 13.7 bn | 14.0 bn | 15.1 bn | 15.0 bn | 13.8 bn | SEC (XBRL)· 06 Feb 2026verified |
| Property, plant & equipment, net | 3.3 bn | 5.1 bn | 6.9 bn | 10.0 bn | 11.3 bn | 12.3 bn | SEC (XBRL)· 06 Feb 2026verified |
| Goodwill | 4.4 bn | 4.4 bn | 4.4 bn | 4.4 bn | 4.4 bn | 4.3 bn | SEC (XBRL)· 06 Feb 2026verified |
| Intangibles (excl. goodwill) | 152.0 m | — | — | — | — | 238.0 m | SEC (XBRL)· 24 Jul 2026verified |
| Total assets | 19.4 bn | 24.7 bn | 27.2 bn | 32.3 bn | 35.5 bn | 34.6 bn | SEC (XBRL)· 06 Feb 2026verified |
| Accounts payable | 415.0 m | 571.0 m | 851.0 m | 802.0 m | 820.0 m | 756.0 m | SEC (XBRL)· 06 Feb 2026verified |
| Short-term debt | 550.0 m | 500.0 m | 500.0 m | 599.0 m | 750.0 m | 500.0 m | SEC (XBRL)· 06 Feb 2026verified |
| Long-term debt | 6.2 bn | 7.2 bn | 8.2 bn | 10.6 bn | 12.8 bn | 13.5 bn | SEC (XBRL)· 06 Feb 2026verified |
| Current liabilities | 2.4 bn | 2.6 bn | 3.0 bn | 3.3 bn | 3.6 bn | 3.2 bn | SEC (XBRL)· 06 Feb 2026verified |
| Total liabilities | 10.2 bn | 11.3 bn | 12.6 bn | 15.5 bn | 18.6 bn | 18.3 bn | SEC (XBRL)· 06 Feb 2026verified |
| Equity | 9.2 bn † | 13.3 bn † | 14.6 bn † | 16.9 bn † | 16.9 bn † | 16.3 bn † | SEC (XBRL)· 06 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 6.1 bn | 8.8 bn | 8.7 bn | 6.4 bn | 6.3 bn | 7.2 bn | SEC (XBRL)· 06 Feb 2026verified |
| Capex | 649.0 m | 2.5 bn | 2.8 bn | 5.1 bn | 4.8 bn | 4.6 bn | SEC (XBRL)· 06 Feb 2026verified |
| Free cash flow | 5.5 bn ≈ | 6.3 bn ≈ | 5.9 bn ≈ | 1.3 bn ≈ | 1.5 bn ≈ | 2.6 bn ≈ | SEC (XBRL)· 06 Feb 2026derived |
| Investing cash flow | -922.0 m | -4.1 bn | -3.6 bn | -4.4 bn | -3.2 bn | -1.4 bn | SEC (XBRL)· 06 Feb 2026verified |
| Financing cash flow | -4.5 bn | -3.1 bn | -6.7 bn | -2.1 bn | -2.9 bn | -5.7 bn | SEC (XBRL)· 06 Feb 2026verified |
| Dividends paid | 3.4 bn | 3.9 bn | 4.3 bn | 4.6 bn | 4.8 bn | 5.0 bn | SEC (XBRL)· 06 Feb 2026verified |
| Share repurchases | 2.6 bn | 527.0 m | 3.6 bn | 293.0 m | 929.0 m | 1.5 bn | SEC (XBRL)· 06 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 51 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 284.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation47
- Returns67
- Quality75
- Balance sheet100
- Growth12
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 84.00 – 329.23 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)84.00 – 133.77 (Mid 103.28)WACC 9.1% · starting FCFF 7.8 bn USD · terminal value share of EV 72%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales137.31 – 329.23 (Mid 205.45)9 companies used · median multiple 9.5x · quartiles 6.5x – 14.9xADI, AMAT, AMD, AVGO, INTC, MCHP, MRVL, MU, NXPI
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 51/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 60.2% | 51 (on a fixed band) | 11% |
| EBIT margin · Quality | 40.8% | 82 (vs peers) | 9% |
| FCF margin · Quality | 35.2% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | -4.1% | 0 (on a fixed band) | 18% |
| Revenue growth (YoY) · Growth | 13.0% | 36 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 5.6x | 100 (on a fixed band) | 7% |
| EV/Sales · Valuation | 14.2x | 44 (vs peers) | 18% |
| FCF yield · Valuation | 2.6% | 51 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 2.0% | 67 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth12/100 · 2/2 factors with a value
- Quality75/100 · 3/3 factors with a value
- Returns67/100 · 1/1 factors with a value
- Valuation47/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
TEXAS INSTRUMENTS INC (TXN). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 17.7 bn USD in 2025; YoY growth 13.0%; net margin 34.3%; ROE 39.7%.
The estimated value range is 110.65–231.50 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 154.37 USD, the price of 311.49 USD leaves a potential of -50.4% (value / price − 1) and a margin of safety of -101.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 51/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 40.8%
- FCF margin: 35.2%
- Current ratio: 5.6x
What contradicts it
- Revenue CAGR 3Y: -4.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA.
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 11 companies
Only companies with a capitalisation between 31.9 bn and 2,042.0 bn (within 8× of the company's); 85 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +95% / +107% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
1- and 3-year price returns: for TXN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 169.71 Total return -44% · Per year -44% | 301.38 Total return -1% · Per year -1% | 455.82 Total return 48% · Per year 48% |
| 3 years | 137.56 Total return -52% · Per year -22% | 277.36 Total return -6% · Per year -2% | 464.36 Total return 56% · Per year 16% |
| 5 years | 111.50 Total return -59% · Per year -16% | 255.26 Total return -10% · Per year -2% | 473.06 Total return 63% · Per year 10% |
- Exit P/E± 69.34
- Net margin± 48.54
- Annual revenue growth± 43.41
- Annual dilution± 4.08
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Texas Instruments (TXN) designs and manufactures analog and embedded processing semiconductors, with revenue of 17.68 bn USD in 2025 1. Third quarter 2026 revenue rose 28% year on year to 6.06 bn USD 3. The company has agreed to acquire Silicon Labs, which could change its portfolio once the deal closes 1.
SWOT
Strengths
- The company has a cost advantage from in-house manufacturing and large wafer production, which gives control over its supply chain.
- A very broad portfolio of analog and embedded processing products reduces dependence on any single product or market.
- Operating cash flow is strong, which supports investment and dividend payments.
Weaknesses
- High fixed factory costs can reduce margins when factory loading falls.
- The Embedded Processing segment carried lower margins linked to the LFAB fab during its ramp.
- Significant revenue comes from customers and shipments into China, which exposes the company to political risk.
Opportunities
- Rising semiconductor content in automotive, industrial and data center applications could support long-term demand.
- The Silicon Labs acquisition could expand the embedded processor portfolio if the deal closes.
- Lower capital spending after the current cycle could improve free cash flow.
Threats
- Trade tensions and tariffs between the United States and China could limit market access and supply chains.
- Asian competitors backed by state policy could push down prices and margins.
- Semiconductor cycles can quickly produce inventory surpluses and falling demand.
Risks
- Geopolitical and trade riskshigh
Tariffs, export controls and tensions between countries could affect sales and shipments.
- Cyclical demandhigh
A drop in demand in one sector or the loss of a large customer could reduce revenue significantly.
- Competitive price pressuremedium
Rivals with government support could force price cuts and margin reductions.
- Supply chain risksmedium
Delays or higher costs for materials and equipment could affect production.
- Cybersecuritymedium
Information security incidents could disrupt manufacturing or online services, or expose confidential data.
Investment thesis
What would need to be true (bull case)
- If the demand recovery holds, revenue growth seen in the third quarter could continue, and free cash flow could support dividends and buybacks.
- Cost advantages from 300mm fabs could deliver better margins than rivals on older technology, especially if factory loading rises.
- The Silicon Labs acquisition could add processors and connectivity to the portfolio if integration succeeds and approvals are obtained.
What would break the thesis
- If trade tensions with China intensify, sales and shipments to customers there could decline significantly.
- The semiconductor cycle could quickly reverse current growth, particularly if customers cut inventories or rivals lower prices.
- High fixed factory costs and capital spending could reduce margins if demand does not support production volumes.
What to watch
- Fourth quarter revenue guidance compared with actual results against the announced rangeQ4 2026
- Progress of the Silicon Labs acquisition, including regulatory approvals and debt financing2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Texas Instruments designs and manufactures semiconductors sold to electronics designers and manufacturers worldwide, headquartered in Dallas, Texas, with operations in more than 30 countries 1. It has two reportable segments, Analog and Embedded Processing, and reports remaining activities in Other 1. Its stated strategy aims at long-term growth of free cash flow per share, supported by four competitive advantages: manufacturing, a broad portfolio, market channel reach and diversity of products and customers 1.
The business relies largely on in-house manufacturing, including 300mm wafer fabs that the company says make an unpackaged chip about 40% cheaper than one built on a 200mm wafer 1. More than 80% of 2025 revenue was direct, through TI.com and its own sales team 1. The portfolio exceeds 80,000 products, sold to more than 100,000 customers, with about half of revenue from outside the 50 largest 1.
Segments
Embedded Processing
The Embedded Processing segment generated 2.70 bn USD in 2025, about 15% of revenue 1. It includes microcontrollers, processors, wireless connectivity and radar products, used mainly in industrial and automotive markets 1. Its 2025 operating margin was lower because of manufacturing costs at the LFAB fab, which could improve as production ramps 12.
Market context
The main markets are industrial, automotive, data center, personal electronics and communications equipment 1. In 2025 industrial and automotive each accounted for about 33% of revenue, personal electronics 21% and data center 9% 1. The analog and embedded market remains fragmented, with competition from dozens of companies, including in Asia 1.
The semiconductor cycle drives demand and inventory, and management describes a cyclical recovery alongside long-term growth in semiconductor content in electronics 12. Cycles could change revenue quickly if demand weakens or customers adjust inventories 1.
Trends
- Cyclical demand recoverytailwind
Demand grew across all end markets in the third quarter of 2026, which could support revenue if the trend continues 23.
- Rising semiconductor contenttailwind
Management says more chips in electronics support long-term demand, especially in automotive and industrial applications 12.
- Geopolitical tensions and tariffsheadwind
Tariffs and trade restrictions between the United States and China could limit market access or supply chains 1.
- Capacity spending and tax changesmixed
Lower capital spending after the current cycle and tax benefits from US legislation could improve cash flow, while the effect on the effective tax rate needs monitoring 1.
Competitive position
The market is fragmented, and competition comes from large and small companies, including niche suppliers and emerging companies in Asia 1. The company points to its product breadth, sales channels, manufacturing technology and customers' software investments as advantages in embedded processing 1.
Price competition could reduce margins if Texas Instruments cannot match price declines or technology progress from rivals 1. Government support for domestic semiconductor industries, such as in China, could make competition harder 1.
- Analog and niche suppliers in the US and elsewhere
The source mentions dozens of large and small companies competing in analog and processor markets without naming them.
- Emerging companies in Asia
The source notes that new Asian companies are entering the same markets, particularly with state policy support.
- Well-resourced technology producers
The source describes rivals with strong financial and technical resources that can develop competitive products with government incentives.
- Outside foundries and subcontractors
The company sometimes uses their capacity, so they act as partners as well as potential competitors in the wider chip supply chain.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Analog chipmaker Texas Instruments sees quarterly sales above estimatesCNA (Channel NewsAsia) · 21 Oct 2026 · EN
- AI infrastructure Boom Fuels Texas Instruments’ (TXN) RallyYahoo Finance — News · 22 Sept 2026 · EN
- Advanced Micro Devices vs. Texas Instruments: Which Tech Stock Is a Better Buy in 2026?Yahoo Finance — News · 17 Sept 2026 · EN
- Texas Instruments Is Up 55% in 2026: This Is the Secret Tech Stock You’re Missing Out OnYahoo Finance — News · 14 Sept 2026 · EN
- Texas Instruments Incorporated (TXN) Benefits from AI without Being Pure Play AIYahoo Finance — News · 03 Sept 2026 · EN
- Down 15% in the Past 2 Months, Texas Instruments (TXN) Stock Could be Due for a ComebackYahoo Finance — News · 03 Sept 2026 · EN
- How Is Texas Instruments' Stock Performance Compared to Other Semiconductor Stocks?Yahoo Finance — News · 01 Sept 2026 · EN
- Tranzacție de 7,5 miliarde de dolari pe piața cipurilor, autorizată în România. Texas Instruments preia Silicon LabsStartupCafe.ro · 24 Jul 2026 · RO
- Consiliul Concurenţei autorizează preluarea Silicon Laboratories de către Texas Instruments IncorporatedJuridice.ro · 24 Jul 2026 · RO
- Consiliul Concurenței a autorizat preluarea producătorului de semiconductori Silicon Laboratories de către Texas InstrumentsEconomedia · 24 Jul 2026 · RO
- New Texas Instruments 5532 chips are not the 5532's we've used for decadesHacker News · 03 Jun 2026 · EN
- Consiliul Concurenţei analizează preluarea Silicon Laboratories de către Texas Instruments IncorporatedJuridice.ro · 29 May 2026 · RO
- Texas Instruments boosts in-house chip output for AI infrastructure boomNikkei Asia · 14 May 2026 · RO
The latest news item in our archive is from 21 Oct 2026; the newest SEC filing is from 23 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report23 Oct 2026
- Current report21 Oct 2026Results of operations · Financial statements and exhibits
- Current report17 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report24 Jul 2026
- Current report22 Jul 2026Results of operations · Financial statements and exhibits
- Current report02 Jun 2026Departure or appointment of officers
- Quarterly report24 Apr 2026
- Current report22 Apr 2026Results of operations · Financial statements and exhibits
- Current report17 Apr 2026Shareholder vote
- Current report25 Mar 2026Departure or appointment of officers
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Texas Instruments Incorporated · 06 Feb 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Texas Instruments Incorporated · 23 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Texas Instruments Incorporated · 21 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.