TXN

Business profile & competitive position

Texas Instruments Incorporated sits in the Technology sector, Semiconductors industry. It designs and manufactures analog and embedded processing semiconductors sold to electronics designers and manufacturers worldwide. The breadth of the portfolio is central to the story: the company reports more than 80,000 products designed into almost every type of electronic equipment. Revenue is concentrated in Analog, which generated $14.01 billion—about 79% of revenue—in 2025, while Embedded Processing contributed $2.70 billion, roughly 15%, and Other contributed $979 million. With over 100,000 customers and about half of revenue coming from outside the top 50, the customer base is diversified rather than concentrated on a few large buyers.

The margin and return figures support the idea of a competitively advantaged operation rather than a commodity chip vendor. The net margin stands at 34.3%, while return on equity is 40.5%. Those numbers point to pricing power, manufacturing scale, and disciplined capital allocation. A key structural driver is 300mm wafer manufacturing, which management says produces an unpackaged chip at roughly 40% lower cost than a comparable chip built on a 200mm wafer. The company also sources the majority of its wafer fabrication, assembly, and test internally, giving it more control over cost, capacity, and lead times than a fabless peer would have.

Financial posture

As of early November 2026, Texas Instruments carried a market capitalization of $276.0 billion and traded at a trailing price-to-earnings ratio of 39.1. That multiple is a premium to many large-cap semiconductor names, reflecting the market’s willingness to pay up for the margin and return profile—but it also means the stock carries elevated expectations. Pairing the 39.1 P/E with a 34.3% net margin and 40.5% ROE shows a highly profitable company trading at a valuation that assumes those advantages persist.

The stock’s beta of 1.34 suggests it has historically moved more than the broader market in both directions, so Technology-sector volatility tends to be amplified here. The current snapshot shows TXN at $302.02, with a 60.4 RSI and the 50-day EMA at $284.29. Price sits above its 50-day moving average, while RSI is in neutral-to-firm territory. Those readings simply describe the recent trend; they do not imply any forward direction.

Strategic priorities & outlook

Texas Instruments’ most recent 10-K frames its overriding objective as maximizing long-term free cash flow per share growth. Management pursues that through a three-part strategy: an analog and embedded processing business model built on four competitive advantages, disciplined capital allocation, and efficiency.

Operationally, that means expanding 300mm manufacturing capacity at the newest fabs in Richardson and Sherman, Texas, and Lehi, Utah. The 300mm cost advantage—again, about 40% lower chip cost versus 200mm—is central to the margin structure. The company is also deliberately building inventory ahead of demand for broad-based products with low obsolescence risk, aiming to maintain customer service, dependable lead times, and manufacturing asset utilization.

Customer interaction is another focus. More than 80% of 2025 revenue came through direct channels, including TI.com, order fulfillment programs, inventory programs, and e-commerce capabilities. Those direct relationships give Texas Instruments better visibility into end demand and a path to protect gross margin. The company owns and operates wafer fabrication and assembly/test facilities across North America, Asia, Japan, and Europe, kept most manufacturing in-house in 2025, and employed about 33,000 people worldwide at December 31, 2025.

Macro & geopolitical exposure

As a semiconductor company, Texas Instruments is exposed to the macro and geopolitical forces that shape global chip demand. Analog and embedded processors sell into industrial, automotive, communications infrastructure, and consumer electronics end markets, so cyclical downturns or inventory corrections in those sectors can flow through to orders and pricing.

Semiconductors also sit at the center of trade policy debates. Tariffs, export controls, and technology-transfer restrictions can affect customer access and supply-chain costs. Because the industry relies on complex, globally dispersed supply chains, trade friction or shipping disruptions can influence lead times and margins. Currency fluctuations matter too: a stronger U.S. dollar can reduce the reported value of overseas revenue, while a weaker dollar can lift it. Commodity and energy inputs—silicon wafers, specialty chemicals, and power for fabs—can also move costs. Finally, semiconductor manufacturing is capital intensive, so interest-rate and credit conditions can affect the economics of fab investments.

Recent developments

The most recent news cluster, dated late October 2026, centered on income characteristics rather than product launches. On October 31, 2026, 247wallst.com noted that Texas Instruments has raised its dividend for 23 years and compared it to other tech income stocks. A day earlier, on October 29, 2026, 247wallst.com ran a comparison of TXN’s $1.52 quarterly dividend versus Analog Devices’ $1.10, asking which dividend is stronger.

Also on October 29, 2026, Zacks.com published “Brokers Suggest Investing in Texas Instruments (TXN): Read This Before Placing a Bet,” highlighting broker commentary around the name, and Seeking Alpha discussed building a 7%-yielding dividend growth portfolio anchored in SCHD, with Texas Instruments included in that income framing. Taken together, the coverage shows a market narrative leaning toward dividend durability and relative income attractiveness.

Earnings behavior & post-earnings drift

Over the last eight reported quarters, Texas Instruments beat consensus earnings estimates six times, for a 75% beat rate, with an average earnings surprise of 8.8%. Across those quarters, the average 5-day price move after earnings was 7.38%, classified as an “up” drift. Those figures describe historical behavior, not a forecast for the next report.

The last four quarters illustrate how noisy post-earnings price action can be. On October 21, 2026, TXN reported EPS of $2.62 against a $2.44 estimate, a 7.4% surprise beat; the stock fell 1.81% the next day but rallied 8.85% over the following five trading days. On July 22, 2026, EPS of $2.14 beat the $1.94 estimate by 10.3%, yet the stock dropped 3.13% the next day and 7.78% over five days. The April 22, 2026 report was the standout: EPS of $1.68 versus $1.36, a 23.5% surprise, produced a 19.43% next-day gain and a 13.93% five-day gain. Even the January 27, 2026 miss—EPS of $1.27 versus a $1.29 estimate, or -1.6%—was followed by a 9.94% next-day pop and 14.53% over five days.

The lesson is that beating estimates does not guarantee a positive next-day reaction, and missing does not guarantee a decline. The next scheduled report is January 26, 2027, after the close, with a consensus EPS estimate of $2.62.

For a deeper dive into how sell-side analysts currently weigh Texas Instruments’ valuation, earnings revision trends, and institutional ownership, review the full institutional verdict on the company.