Latest update
$311
Updated: Jun 15, 2026, 3:31 PM UTC
Browsing public data
Texas Instruments, a diversified semiconductor manufacturer, shows strong profitability with Q1 2026 net income up 31.0% YoY and robust operating margins (37.8%). However, revenue growth stands at 18.6% YoY, while Q1 FCF saw a significant QoQ decline of -36.5%. The company maintains a stable share count but has a heavy debt load with weak debt service metrics. Valuation appears stretched, with a TTM P/E of 53.3x, while cash return at the current price is low at 0.4%.
Revenue
The total dollars the company billed customers. When this number grows quarter after quarter, the business is finding more demand.
Latest
↑$4.8B
Q1 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↑+9.1%
vs Q4 2025
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
↑+18.6%
vs Q1 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
Net income
What's left from revenue after paying every cost — employees, materials, taxes, interest. Sometimes called profit or 'the bottom line.'
Latest
↑$1.5B
Q1 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↑+32.8%
vs Q4 2025
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
↑+31.0%
vs Q1 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
Free cash flow
The cash actually left in the bank after the company has paid for everything and reinvested in itself. Harder to fake than net income.
Latest
↓$844M
Q1 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↓-36.5%
vs Q4 2025
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
•—
vs Q1 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
| Metric | 3 yr | 2 yr | 1 yr |
|---|---|---|---|
| Revenue | — | — | +18.6% $4.1B→$4.8B |
| Net income | — | — | +31.1% $1.2B→$1.5B |
| Free cash flow | — | — | +74.9% $555M→$844M |
P/E TTM
↑53.3×
Trailing twelve months. Today's price divided by the last year of actual earnings.
P/E NTM
↑33.1×
Next twelve months. Today's price divided by what analysts expect the company to earn over the coming year.
Profitability
↑Strong
Operating margin (and the wider return profile) tells you how efficiently each dollar of sales becomes profit. High and rising = pricing power; low or falling = the business is grinding.
Share count
→Stable
Are the buybacks outrunning the stock-based comp? A shrinking share count means every existing share owns a bigger slice of future earnings.
Debt load
↓Heavy
Total debt against cash and earnings power (EBITDA). Light debt leaves room to invest and weather downturns; heavy debt shrinks the margin for error.
Debt service
↓Weak
Whether the cash the business generates easily covers its interest and loan payments. Strong here = no forced selling in a bad year.
Cash return at today's price
↓0.4%
Free cash flow divided by market cap — the cash yield you're getting for the price you pay. Above ~6% is rich, below ~3% is thin. P/E shown when the yield is too small to be useful.
While TXN remains a compelling long-term buy due to its critical role in key technological trends and strong profitability, the immediate setup suggests caution. The stock is extended from its weekly trend, increasing the risk of a sharp correction. Waiting for a pullback closer to the previous target entry zone offers a better risk/reward proposition, aligning with both the long-term markup cycle and prudent capital management.
Short-term thesis
Texas Instruments is a highly profitable, foundational semiconductor company with significant exposure to long-term secular growth in industrial automation and automotive electrification. Despite current valuation concerns and a heavy debt load, its strong operating engine and market position for analog and embedded processing solutions make it a compelling long-term holding. Tactical patience is required for optimal entry points.
Long-term exposure
Avoid
The business or valuation backdrop is not ready for long-term conviction.
Entry window
Wait
This week's price action shows a continuation of strength, but the stock remains significantly extended from its long-term trend. While the overall cycle remains positive, a tactical entry should await a more favorable setup closer to support levels.
Risk check
Fragile
The downside can widen quickly if this setup goes wrong.
Alignment
Mixed
Neither horizon fully wins, so size and patience matter.
What supports it
What limits it
Long-term thesis
Industrial Automation and Automotive Electrification will drive sustained, long-term demand for analog and embedded processing solutions, with TXN as a critical, high-margin supplier.
Bottleneck Role
Texas Instruments is a foundational bottleneck supplier in analog and embedded processing, essential for power management and real-world signal conversion. Its vertically integrated 300mm manufacturing capacity provides cost advantages and supply chain control, making it hard to replace quickly.
Consensus Blind Spot
The market might be underestimating the long-term stickiness and growing 'dollar content' opportunity within industrial and automotive applications, often focusing more on consumer electronics or AI compute. TXN's long product lifecycles and direct sales model provide insulation and predictable revenue streams not fully captured by typical growth metrics.
Demand Gap
The ongoing shift towards smart factories, renewable energy systems, and electric/autonomous vehicles creates a long-term demand gap for efficient, reliable power management and resilient sensing technology, which TXN is uniquely positioned to fill.
Demand to Equity Scenarios
Global economic slowdown, inventory build-up in end markets, increased competition.
Demand
-10%
Earnings
-15%
Equity implication
-25%
Reduced order intake, lower fab utilization, pricing pressure on standard products.
Steady growth in industrial and automotive sectors, moderate adoption of new technologies.
Demand
+5%
Earnings
+10%
Equity implication
+15%
Stable order flow, gradual increase in 300mm utilization, consistent profit margins.
Accelerated industrial automation investment, rapid EV/ADAS adoption, design wins in new platforms.
Demand
+15%
Earnings
+25%
Equity implication
+40%
Strong order growth, high 300mm fab utilization, significant operating leverage and increased pricing power.
Dependency Chain
Repricing Triggers
Must be true
Thesis broken if
What changed
Signal
Conviction
Long term
Stock
Added since last run
6No longer flagged
0Nothing dropped this run
The previous assessment that the stock was in a healthy cooling period and becoming expensive was accurate, as it has continued to consolidate. The emphasis on prioritizing entry closer to $240-$250 remains relevant given the current extended price from the weekly trend.
Jun 15, 2026
LatestUpdated Jun 15, 2026, 3:31 PM UTC
Price at review
$311
This week's price action shows a continuation of strength, but the stock remains significantly extended from its long-term trend. While the overall cycle remains positive, a tactical entry should await a more favorable setup closer to support levels.
Jun 8, 2026
Updated Jun 8, 2026, 11:13 AM UTC
Price at review
$285
The stock is currently going through a healthy cooling period after becoming too expensive too quickly.
May 30, 2026
Updated May 30, 2026, 7:55 AM UTC
Price at review
$306
The stock is still trading way too far above its long-term average price. It is better to wait for a deeper dip rather than chasing it after a long period of growth.
May 9, 2026
Updated May 9, 2026, 6:15 PM UTC
Price at review
$288
The stock is currently overheated and very far above its typical moving averages. While the trend is exceptionally strong, jumping in right now carries a high risk of a sudden pullback.