Texas Instruments Inc.
TXNFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.1B
Q1 FY2026 · +19% YoY
TTM ROIC
21%
FY2025 · NOPAT / Invested Capital (implied; labeled ROIC in historical table) · WACC ~9% · Moat spread +12pp
Financial Snapshot
ticker: TXN step: 04 generated: 2026-05-12 source: quick-research
Texas Instruments Incorporated (TXN) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $17.5B | $15.6B | $17.7B | +13% |
| Gross Margin | 62% | 58% | 58.5% | +50bps |
| Operating Margin | 41% | 37% | 38% | +1pp |
| Net Income | $6.5B | $4.8B | $5.0B | +5% |
| EPS (diluted) | $7.07 | $5.24 | $5.50 | +5% |
| Free Cash Flow | $1.5B | $1.5B | $2.6B | +73% |
Segment Revenue (FY2025)
| Segment | % of Revenue |
|---|---|
| Industrial | ~34% |
| Automotive | ~35% |
| Personal Electronics | ~15% |
| Communications + Enterprise | ~10% (Data Center +90% YoY) |
| Other (incl. Govt) | ~6% |
Q1 2026 Highlights
| Metric | Q1 2026 | YoY |
|---|---|---|
| Revenue | $4.07B | +19% |
| EPS | $1.46 | +24% |
| All segments + geographies + customer sizes | Sequential growth (broadest recovery in 2 years) | |
| Data Center Revenue | +90% YoY | |
| Industrial Recovery | First broad-based positive signal in 2 years |
Capacity Expansion Plan
| Metric | Value |
|---|---|
| Total US investment plan | >$60B (largest in foundational semis history) |
| Through 2029 commitment | $18B+ |
| Number of US fabs | 7 |
| CHIPS Act funding | Up to $1.6B (announced); $7.5-9.5B lifetime |
| Sherman (SM1) | Production started Dec 2025 |
| RFAB2 (Richardson) | Ramping; will more than double RFAB1 capacity |
| LFAB1 (Lehi) | Continuing ramp on 45nm-65nm |
Capex Profile
| Year | Capex |
|---|---|
| FY2023 | $5.2B |
| FY2024 | $4.7B |
| FY2025 | ~$5.0B |
| FY2026 (guide) | $2-3B (cycle 83% complete) |
| Going forward | Normalized $1.5-2.5B annual |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$7.5B |
| Capital Expenditures | ~$5.0B |
| Free Cash Flow | $2.6B (15% margin) |
| Cash & Investments | ~$8B |
| Total Debt | ~$14B |
| Net Debt / EBITDA | ~1.0x |
Key Ratios (approximate, May 2026)
- P/E (forward): ~27x | EV/EBITDA: ~17x | Dividend Yield: ~2.9%
- ROIC: ~30%+
- FCF margin: 15% (FY25) → projected 33% (FY26) as capex moderates
Growth Profile
Q1 2026 marks a watershed: all sectors + geographies + customer sizes grew sequentially for first time in 2 years — broadest recovery signal. Data Center revenue +90% YoY. The 5-year capex cycle is 83% complete. FY26 capex moderates to $2-3B (from $5B), enabling FCF margin to expand from 14.7% (FY25) to ~33% (FY26 target). Management targeting $8+ FCF per share in 2026.
Forward Estimates
- FY2026E Revenue: ~$20-21B (+13-19%)
- FY2026E EPS: ~$6.50 (consensus, +18%)
- FY2026E FCF Per Share: $8+ (mgmt target)
- FY2027E EPS: ~$7.50 (+15%)
- FY2030 Bull Target (TIKR): $391.75/share; EPS $12.57
Capital Return
- Quarterly dividend $1.36 = $5.44 annual (~$5B paid)
- 21 consecutive years of dividend growth
- Buybacks moderated during capex cycle; expected to resume meaningfully as FCF expands
- TI has historically returned 100% of FCF to shareholders
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $TXN.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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