TXN
Texas Instruments Incorporated
TXN's fundamentals are strong, but it looks expensive: trading at 40x earnings, above its usual 27x. Analysts expect strong earnings growth.
TXN Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Healthy |
TXN's revenue, profitability, cash flow and balance sheet are all currently healthy.
TXN PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 19x | $150 | -52% |
| Fair | 27x | $206 | -34% |
| Forward | 28x | $312 | — |
| Expensive | 36x | $276 | -12% |
| Current | 40x | $312 | — |
Historical ranges are pointers, not guarantees.
TXN's PE is in its expensive range at 40x. If earnings grow as analysts expect, today's price would be 28x next year's earnings, in its fair range.
TXN Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Moderate | |
| Moderate |
Analysts expect strong earnings and revenue growth for TXN, with profitability improving.
TXN Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $11.25 | +46% |
| Q3 2026 | $7.72 | +41% |
| Q2 2026 | $6.58 | +20% |
| Q1 2026 | $5.85 | +11% |
| Q4 2025 | $5.45 | +4.8% |
| Q3 2025 | $5.48 | +1.7% |
| Q2 2025 | $5.47 | -5.2% |
| Q1 2025 | $5.28 | -18% |
| Q4 2024 | $5.20 | -26% |
TXN earned $7.72 per share over the past year, up 41% from the year before.
TXN Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $6.1B | +28% |
| Q2 2026 | $5.5B | +23% |
| Q1 2026 | $4.8B | +19% |
| Q4 2025 | $4.4B | +10% |
| Q3 2025 | $4.7B | +14% |
| Q2 2025 | $4.4B | +16% |
| Q1 2025 | $4.1B | +11% |
| Q4 2024 | $4B | -1.7% |
TXN's revenue has grown year over year for seven quarters in a row: $6.1B last quarter, up 28% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 47% | +12 points |
| Q2 2026 | 42% | +7.1 points |
| Q1 2026 | 37% | +4.9 points |
| Q4 2025 | 33% | -1.1 points |
| Q3 2025 | 35% | -2.4 points |
| Q2 2025 | 35% | +2.5 points |
| Q1 2025 | 33% | -2.6 points |
| Q4 2024 | 34% | -3.2 points |
TXN's operating margin was 47% last quarter, up 12 points from the same quarter a year ago.
TXN Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $3B | +198% |
| Q2 2026 | $2.2B | +294% |
| Q1 2026 | $844M | +$1.1B |
| Q4 2025 | $1.3B | +65% |
| Q3 2025 | $993M | +139% |
| Q2 2025 | $555M | +9.5% |
| Q1 2025 | -$274M | -$43M |
| Q4 2024 | $806M | +3.9% |
TXN generated $7.3B in free cash flow over the past year, about four times what it generated the year before.
TXN Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.1% | +1M shares |
| 1 year | +0.8% | +7M shares |
| 3 years | +0.5% | +5M shares |
| 5 years | -1.6% | -15M shares |
| Available history | -3.3% | -31M shares |
TXN has 921M diluted shares, up 0.8% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $48M |
| Q2 2026 | $27M |
| Q1 2026 | $158M |
| Q4 2025 | $403M |
| Q3 2025 | $119M |
| Q2 2025 | $302M |
| Q1 2025 | $653M |
| Q4 2024 | $537M |
TXN spent $636M buying back its own shares over the past year, down 61% from the year before.
TXN Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.9x | Very low |
| Q2 2026 | 1.1x | Healthy |
| Q1 2026 | 1.2x | Healthy |
| Q4 2025 | 1.4x | Healthy |
| Q3 2025 | 1.4x | Healthy |
| Q2 2025 | 1.5x | Healthy |
| Q1 2025 | 1.4x | Healthy |
| Q4 2024 | 1.5x | Healthy |
TXN's net debt is less than a year of its operating earnings (EBITDA), down from 1.4 years a year ago.
TXN Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 60.6 | Neutral |
| Stochastic | 72.2 | Neutral |
TXN's weekly RSI is 61 (neutral) and its Stochastic is 72 (neutral).
TXN PE vs Technology Sector
| Metric | TXN | Sector median | Relative |
|---|---|---|---|
| PE | 40x | 28x | 45% above |
| PE % | 92 | 35 | 57 pts above |
TXN is trading at 40x earnings, a 45% premium to the Technology sector's median of 28x.
TXN Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $288.4 | 8.3% above |
| 20 week MA | $281.7 | 11% above |
| 50 week MA | $251.1 | 24% above |
| 100 week MA | $217.0 | 44% above |
| 200 week MA | $197.7 | 58% above |
TXN is in an uptrend: it's above all five of its weekly moving averages, and 58% above its 200-week average.
TXN Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $128.6 | $161.6 | +26% |
| 2021 | $161.6 | $187.4 | +16% |
| 2022 | $187.4 | $164.4 | -12% |
| 2023 | $164.4 | $170.5 | +3.7% |
| 2024 | $170.5 | $191.2 | +12% |
| 2025 | $191.2 | $176.9 | -7.5% |
| 2026 YTD | $176.9 | $312.5 | +77% |
TXN has finished higher in four of the last six years. It's up 77% so far in 2026.