TXN
Texas Instruments Inc.
Price History
Why Is TXN ▲ Up Today?
+0.17%
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Financial Highlights
TTM 2025Income Statement
Balance Sheet
Cash Flow
SEC filing dated February 6, 2026. Source: Polygon.io / SEC EDGAR.
Highly Regarded Analysis
Executive Summary
Texas Instruments (TI) is a leading American multinational semiconductor company headquartered in Dallas, Texas. It is one of the top 10 semiconductor companies globally, primarily focused on designing and manufacturing analog chips and embedded processors, which constitute over 80% of its revenue. The company recently reported strong financial results for the second quarter of 2026, exceeding analyst expectations with earnings per share of $2.14 and revenue of $5.46 billion. TI also significantly raised its guidance for the third quarter of 2026. For the fourth quarter of 2024, the company's EPS of $1.30 and revenue of $4.01 billion also surpassed forecasts.
Bull Case
The bull case for Texas Instruments is driven by strong demand for its analog and embedded processing chips, particularly from the industrial and automotive sectors, as well as data centers. The company's leading market share in the analog semiconductor market and strategic investments in 300mm wafer fabrication plants are expected to provide cost advantages and enhance supply chain reliability. Recent strong financial results, including beating analyst expectations for EPS and revenue in Q2 2026 and raising Q3 2026 guidance, underscore its operational strength. The consistent dividend growth for over two decades also provides a stable income stream for investors. Analysts project significant free cash flow margin expansion post the current CapEx cycle.
Bear Case
Key concerns in the bear case for TXN include a high valuation, with a price-to-earnings ratio of 39.34, which is above the average and could be susceptible to market corrections. There has been a significant wave of insider selling by executives in recent months (April and May 2026), which some may interpret as a signal of reduced confidence. The company's exposure to the data center market might be less visible than that of its competitors. Additionally, the stock could experience volatility if the AI sector experiences a de-rating. Historically, TXN has shown sensitivity to 'Credit & Liquidity Crises', experiencing an average drawdown of -28% during such events. Short-term technical indicators also suggest bearish momentum.
Technical Outlook
The technical outlook for TXN shows mixed signals. The 50-day moving average ($273.8) is above its 200-day moving average ($260), indicating a bullish trend or 'golden cross'. However, the MACD line is currently below the signal line, suggesting bearish momentum. Furthermore, the stock price is below its 5, 20, and 50-day exponential moving averages, indicating a strongly bearish short-term trend and selling pressure. The Relative Strength Index (RSI) is around 33.6 to 43.43, suggesting neutral conditions, neither overbought nor oversold. The stock has found support near $184.53 and resistance around $330.58.
Fundamental Health
Texas Instruments demonstrates robust fundamental health, supported by consistent financial performance and strategic investments. The company has a strong market position in analog semiconductors, offering scale advantages. It boasts a net margin of 31.11% and a return on equity of 35.77%. As of September 2026, its balance sheet shows total shareholder equity of $18.0 billion and total debt of $14.1 billion, resulting in a debt-to-equity ratio of 78%. Cash and short-term investments stand at $7.0 billion, with an interest coverage ratio of 13.1, indicating strong debt management. The company has also consistently increased its dividend for 21 consecutive years. Texas Instruments is in an elevated capital expenditure cycle, investing heavily in 300-millimeter manufacturing capacity to lower unit costs and improve supply dependability.
Key Catalysts
- Sustained strong demand for analog and embedded processing chips in industrial and automotive markets.
- Successful completion of 300mm wafer manufacturing expansion, leading to cost efficiencies and increased capacity.
- Continued dividend growth and strong free cash flow generation.
- Overall economic recovery and semiconductor industry upcycle.
- Macroeconomic conditions, particularly credit and liquidity environments.
Sources
This analysis was conducted by Highly Regarded's proprietary market analysis engine. It is not financial advice. Always do your own research and consult a financial advisor before making investment decisions.
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Key Stats
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TXN News
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