# Texas Instruments Incorporated (TXN)

> Designs and manufactures chips used inside electronic equipment.

- Exchange: NASDAQ · Sector: Technology · Industry: Semiconductors
- Headquarters: Dallas, Texas
- Founded: 1930
- Employees: about 33,000 (December 31, 2025)
- SEC CIK: 0000097476 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000097476))
- Full page: https://inspectstocks.com/stocks/txn
- Data as of: price 2026-09-25; newest filing used 2026-07-24; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $19.5B | $18.8B |
| Revenue growing recently | passed | $19.5B | $17.7B |
| Free cash flow positive | passed | $5.4B |  |
| Free cash flow growing overall | passed | $5.4B | $3.2B |
| Free cash flow growing recently | passed | $5.4B | $2.6B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 31.1% |  |
| Healthy profit margin | passed | 31.1% |  |
| Strong operating margin | passed | 37.3% |  |
| Good return on equity | passed | 37.2% |  |
| Debt under control | passed | 0.91 |  |
| Turns sales into cash | passed | 27.5% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $19.5B |
| Net income, trailing twelve months | $6.1B |
| Free cash flow, trailing twelve months | $5.4B |
| Net margin | 31.1% |
| Operating margin | 37.3% |
| Return on equity | 37.2% |
| Debt to equity | 0.91 |
| Diluted EPS, trailing twelve months | $6.57 |
| Share price | $278.07 |
| Market value | $253.9B |
| Price / earnings | 42.3x |
| Price / sales | 13.1x |

## What the business does

Texas Instruments makes semiconductor chips that help electronic equipment manage electrical power, handle signals such as sound or temperature, and process data. Its chips are used in industrial equipment, cars, data centers, personal electronics and communications equipment. It sells mainly through its own sales channels, including its website, and also through distributors.

### How it makes money

- **Analog chips** (81.3% (quarter ended 2026-03-31)) — Revenue comes from selling chips that manage electrical power and sense, change or measure signals. In 2025, more than 80% of revenue came through direct sales, including TI.com; the rest included distributor sales.
- **Embedded Processing chips** (15.0% (quarter ended 2026-03-31)) — Revenue comes from selling microcontrollers, processors, wireless connectivity and radar chips for equipment that needs to carry out specific tasks.

### Products

- **Power chips** — Chips that regulate, convert, distribute or measure electrical power in equipment, including battery-powered devices.
- **Signal-chain chips** — Chips that sense and measure real-world signals, such as temperature or light, and amplify, change or pass those signals to other parts of a device.
- **Microcontrollers** — Small computers inside equipment, combining a processor, memory and other parts to control specific tasks.
- **Processors** — Chips designed to carry out particular kinds of computing in electronic equipment.
- **Wireless connectivity and radar chips** — Chips that provide wireless connections or process radar signals, including for equipment and vehicles.
- **DLP products, calculators and custom chips** — DLP products are used mainly to project high-definition images; the company also sells calculators and custom chips called application-specific integrated circuits.

### Customers

- Electronics designers and manufacturers buy chips for use in their products across industrial equipment, automotive, data centers, personal electronics and communications equipment. They can buy directly from Texas Instruments, including through its website, or through distributors; more than 80% of revenue was direct in 2025 (2025, high).

### Competitors

- Analog Devices (ADI) — Analog chips that manage power and handle electronic signals.
- NXP Semiconductors (NXPI) — Analog and embedded chips used in automotive and industrial equipment.
- Microchip Technology (MCHP) — Microcontrollers and other chips for embedded equipment.
- STMicroelectronics (STM) — Analog and embedded chips used in automotive, industrial and personal electronics.

### What it depends on

- Sales depend on demand for electronic equipment and on customer and distributor inventories, which can rise or fall with the semiconductor supply-and-demand cycle.
- The company makes most of its chips in factories it owns, so production depends on its factories, manufacturing equipment and the time and capital needed to add capacity.
- It also uses outside chip-making and assembly suppliers to supplement its own production, and buys materials and parts from suppliers around the world.

### What could go wrong

- The semiconductor cycle can bring periods of excess customer or distributor inventory and weaker demand, reducing orders for the company's chips.
- Much of the company's manufacturing cost is fixed; if factory output falls, those costs are spread over fewer chips. Large factory and equipment investments also expose it to the cost and timing of adding capacity.
- A disruption at company factories or at outside suppliers could interrupt chip production. The company operates manufacturing sites across several regions and depends on a global supplier network.

## More on this company

- [Overview](https://inspectstocks.com/stocks/txn)
- [Financial statements](https://inspectstocks.com/stocks/txn/financials)
- [Competitors](https://inspectstocks.com/stocks/txn/peers)
- [Earnings](https://inspectstocks.com/stocks/txn/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.