Reading the tape
NASDAQ: TXN
Texas Instruments Incorporated
Technology · Semiconductors
Market Cap
$261.92B
52w High
$292.64
52w Low
$152.73
P/E
48.74
Volume
8.51M
Outstanding Shares
910.09M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 73.75%Revenue (TTM): 14.89%FCF (TTM): 155.74%P/FCF: 79th pct
What changed
The stock rose 73.75% over the last year. Revenue grew 14.89% over the trailing twelve months. Operating margin moved from 34.29% to 35.29%. Free cash flow grew 155.74% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (79th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 35.29% — continued expansion would be needed to justify the premium. Revenue growth of 14.89% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide.
CEOHaviv Ilan
SectorTechnology
IndustrySemiconductors
Employees34,000
IPO dateJun 1, 1972
Valuation
Forward P/E—
EV/EBITDA20.59
Enterprise value$169.87B
Stock splits
May 23, 2000↑ Forward
Every 1 shares became 2
Aug 17, 1999↑ Forward
Every 1 shares became 2
Nov 24, 1997↑ Forward
Every 1 shares became 2
Aug 21, 1995↑ Forward
Every 1 shares became 2
Jun 15, 1987↑ Forward
Every 1 shares became 3
May 29, 1973↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth18.58%
Gross margin57.32%▼1.92%vs FY2024
Operating margin35.29%▼2.51%vs FY2024
ROE30.73%▲8.24%vs FY2024
Analyst consensus
RatingBuy
Target price$253.71▼11.85%
30
Buy
28
Hold
7
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 28, 2026
Q3 FY26 · EPS est $1.89 · Revenue est $5.2B
View
Dividends
$5.62/shareQuarterlyDividend Achiever · 22yrStretchedTXN pays a dividend with a 1.95% dividend yield, 22 consecutive years of growth, growing at 7.25% annually, covered 0.5× by free cash flow.
Dividend Yield
1.95%
Annual Div / Share
$5.62
5yr CAGR
+7.25%
Doubles every ~9.9yr
Payout Ratio
94.13%
Stretched
Dividend Growth Rate
3yr CAGR
+4.89%
5yr CAGR
+7.25%
10yr CAGR
+14.27%
Dividend Safety
2/10Stretched
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$5.62+4.5%
2025$5.38+4.7%
2024$5.14+5.5%
2023$4.87+8.9%
2022$4.47+12.9%
2021$3.96+14.1%
2020$3.47+18.4%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$20/yr
$2/mo
In 5 yrs
$28/yr+42%
$2/mo
In 10 yrs
$39/yr+101%
$3/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$20/yr $2/mo | $28/yr+42% $2/mo | $39/yr+101% $3/mo |
Yield-on-cost grows from 1.95% → 3.93% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
TXN has raised its dividend for 22 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Strong dividend growth rate
The 5-year CAGR of 7.25% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
High payout ratio
With 94.13% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Dividend exceeds free cash flow
Free cash flow covers only 0.52× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.
Congressional Activity
Congress Trades in TXN
STOCK Act disclosures from senators and representatives.
Kevin Hern
OKhouseRepublicanSaleJoint2026-03-18$500,001 - $1,000,000+19d to disclose