| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | 38.7x | 17.3x | Bottom tier | |
Growth | 80 | 20.3% | 7.1% | Top tier | |
Quality | 96 | 23.0% | 4.5% | Top tier | |
Safety | 85 | 0.6x | 2.6x | Top tier | |
Capital Return | 79 | 1.91% | 0.06% | Top tier | |
Momentum | 79 | 58.5% | -1.6% | Top tier | |
Sentiment | 68 | 24 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
77% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Texas Instruments designs and manufactures semiconductors, with a revenue model focused on analog and embedded processing products used in industrial equipment, automotive, data centers, personal electronics, and communications equipment. The company relies on a broad portfolio, direct sales channels, and 300-millimeter manufacturing capability, aiming to translate the breadth of its product base and the long life cycles of its products into long-term growth in free cash flow per share.
In Q2 fiscal 2026, revenue reached $5.5 billion, up 13% sequentially and 23% year over year, while gross profit was $3.4 billion at a 61% margin, up 340 basis points sequentially. Operating profit reached $2.3 billion, or 42% of revenue, and increased 48% year over year, while net income was $2 billion and earnings per share were $2.14, including a nonrecurring tax benefit of $0.05 per share. The Analog segment led the growth mix with a 26% year-over-year increase, Embedded Processing grew 16%, while Other declined 2%.
Across end markets in Q2 fiscal 2026, industrial revenue increased by about 30% year over year and 10% sequentially, automotive rose by a mid-teens percentage year over year and a high-single-digit percentage sequentially, and data center sales doubled year over year with sequential growth of approximately 20%. Personal electronics remained flat year over year and grew by a high-single-digit percentage sequentially, while communications equipment also grew both year over year and sequentially, demonstrating that the recovery spanned several markets rather than just one source.
The analyst consensus for TXN stock is "Buy," with an average price target of $325 and a wide range between $225 and $405. The average target is below the 52-week high of $334.03, while the highest target exceeds that peak and the lowest target falls well below it, illustrating disagreement over the sustainability of the recovery in industrial, automotive, and data centers. The valuation balances Q2 fiscal 2026 revenue growth of 23% and improved free cash flow on one hand, against capital-spending intensity, inventory of 196 days, and execution risks related to the Silicon Labs transaction on the other.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Texas Instruments revenue reached approximately $5.5 billion, up 23% year over year and 13% sequentially. The Analog segment grew 26% year over year and Embedded Processing grew 16%, while Other declined 2%. Net income was $2 billion and earnings per share were $2.14, including a tax benefit of $0.05 per share that was not included in the original guidance.
Data center revenue doubled year over year in Q2 fiscal 2026 and increased by about 20% sequentially. The company sells components used in the power tree and signal chain, in addition to embedded controllers used across voltage-conversion stages. Management believes the gradual transition to 800-volt architectures could expand the available market because of the increased number of conversion stages and higher power requirements.
Texas Instruments expects revenue between $5.65 billion and $6.15 billion in Q3 fiscal 2026. Earnings per share are projected to range from $2.23 to $2.57, with an effective tax rate of approximately 13%. Management explained on July 22, 2026, that demand strength spans industrial, data centers, and automotive, and that pricing's contribution to expected growth will be very limited compared with unit growth.
Automated analysis for informational purposes only — not investment advice.
Cash flow from operations was $2.7 billion in Q2 fiscal 2026 and reached $8.7 billion for the twelve months ended that quarter. Free cash flow for the same period was $6.5 billion, but it included $1.6 billion in CHIPS Act incentives. The company spent $514 million on capital expenditures during the quarter and maintained its fiscal 2026 spending outlook between $2 billion and $3 billion.
Texas Instruments said during the July 22, 2026 call that regulatory approvals for the Silicon Labs transaction were proceeding according to plan. The company expects to close the transaction in the first half of 2027, with no announced change to the financing terms. It plans to finance it with available cash and debt, at a time when it held $7 billion in cash and short-term investments against $14 billion in debt at the end of Q2 fiscal 2026.
The company said during the July 22, 2026 call that Julie Knecht would become chief financial officer on August 1, 2026, after more than 25 years at Texas Instruments and serving as chief accounting officer since 2021. It also announced that Rafael Lizardi, who served as chief financial officer for nearly a decade, intends to retire at the end of August 2026. The announced information did not include any change to Haviv Ilan's position as chief executive officer.