# Texas Instruments Inc. (TXN) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/TXN/thesis · /stocks/TXN/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/TXN/fundamental

## Navigation

- Overview: /stocks/TXN
- Financials (this page): /stocks/TXN/financials
- Thesis: /stocks/TXN/thesis
- Investment Memo: /stocks/TXN/memo
- Coverage universe: /stocks