Texas Instruments is executing a strategic pivot toward 300mm manufacturing, which is driving record gross margins of 61.4% and operating leverage that boosted operating income 43.8% YoY in 2026Q2. The company's revenue growth accelerated to 22.8% YoY, fueled ...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue surged 22.8% YoY to $5.5B in 2026Q2, with gross margin expanding to 61.4% and operating margin to 42.3%, reflecting strong operating leverage and 300mm mix benefits.
TXN reported a 19% year-over-year revenue increase and EPS exceeded estimates, indicating robust demand recovery.
Stifel upgraded TXN to 'Buy' with a $250 target, while Bank of America set a $320 target, reflecting optimism about free cash flow growth.
The nearing completion of TXN's heavy capex cycle is expected to lead to a significant boost in free cash flow in 2026.
TXN's performance is heavily reliant on the cyclical semiconductor industry, which poses risks during downturns.
Higher memory costs may lead to demand destruction, impacting TXN's growth prospects.
Some analyses suggest TXN could be overvalued based on DCF analysis, raising concerns about its current price.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $2.14+12.0% vs $1.91 | $5.5B+3.9% vs $5.3B |
Q2 2026 Apr 22, 2026 | $1.68+23.5% vs $1.36 | $4.8B+6.6% vs $4.5B |
Q1 2026 Jan 27, 2026 | $1.27-1.6% vs $1.29 | $4.4B-0.3% vs $4.4B |
Q4 2025 Oct 21, 2025 | $1.48-0.7% vs $1.49 | $4.7B+2.1% vs $4.6B |
Semiconductors, especially analog and mixed-signal names like Texas Instruments (TXN), are overlooked opportunities after a sector-wide sell-off and negative retail sentiment, explains Alex King from Growth Investor Pro. TXN shows accelerating double-digit revenue growth, strong cash flow margins, and a delevered balance sheet, positioning it well for robotics-driven demand.
We believe Texas Instruments offers a compelling risk/reward setup in analog/mixed-signal semiconductors, driven by robotics industry demand. TXN's revenue growth has accelerated to +23% in Q2 and is guided to +24% in Q3, with TTM operating cash flow minus capex margins at 28%. We rate TXN at Accumulate between $244-$271, Hold between $271-$345, and Distribute between $345-$400, assuming use of a stop below $244.
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Benchmark TXN against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Texas Instruments Incorporated (TXN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $271.41 | $247.86B | 49.80 | 13.05% | 28.28% | 30.15% | 2.02% | |
| $390.37 | $190.14B | 85.61 | 16.89% | 29.79% | 12.26% | — | |
| $75.82 | $41.17B | 291.62 | 7.08% | 8.8% | 6.9% | — | |
| $53.41 | $47.67B | 296.72 | -10.8% | 3.55% | 2.56% | — | |
| $237.57 | $59.91B | 29.88 | -2.74% | 22.56% | 27.1% | — | |
| $73.60 | $28.64B | 253.79 | -15.35% | 10.17% | 8.35% | — |
Texas Instruments Incorporated (TXN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Texas Instruments Incorporated (TXN) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 22, 2026·SEC
Jun 2, 2026·SEC
Apr 22, 2026·SEC
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Texas Instruments Incorporated (TXN) stock FAQ — growth, dividends, profitability & financials explained
Texas Instruments Incorporated (TXN) reported $19.45B in revenue for fiscal year 2025. This represents a 96% increase from $9.94B in 1996.
Texas Instruments Incorporated (TXN) grew revenue by 13.0% over the past year. This is steady growth.
Yes, Texas Instruments Incorporated (TXN) is profitable, generating $6.05B in net income for fiscal year 2025 (28.3% net margin).
Yes, Texas Instruments Incorporated (TXN) pays a dividend with a yield of 2.02%. This makes it attractive for income-focused investors.
Texas Instruments Incorporated (TXN) has a return on equity (ROE) of 30.1%. This is excellent, indicating efficient use of shareholder capital.
Texas Instruments Incorporated (TXN) generated $5.36B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
