NASDAQ · Technology

Texas Instruments Incorporated

TXN · Semiconductors

$322.86

▲ 20.98 (6.95%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 58.0%

Operating Margin 37.8%

Net Income Margin 32.0%

Fin. Health

D⤢

Years to Pay Off Debt 9.1 yrs

Working Capital vs Long-Term Debt -$2.2B

Working Capital $10.7B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 17.51x

Cash Flow

C⤢

Free Cash Flow $844M

CapEx % of Net Income 43.8%

Owner Earnings $2.8B

Profitability

Gross Profit Margin 58.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 37.8%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 32.0%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 9.1 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$2.2B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $10.7B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $844M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 43.8%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.8B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Texas Instruments Incorporated

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Market Data

Market Cap $293.8B

Enterprise Value $287.2B

P/E (TTM) 55.28

Dividend Yield 1.84%

Exchange NASDAQ

Key Margins

Gross Profit 58.0%

Operating Margin 37.8%

Net Margin 32.0%

Company Info

Sector Technology

Industry Semiconductors

Employees 33000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Texas Instruments Incorporated at $322.86.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $322.86, the stock trades at a 1123% premium to its Graham Number of $26.40. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	58.0%▲	55.9%•	N/A
Operating Margin %	37.8%▲	34.0%•	N/A
Net Income %	32.0%▲	26.3%•	N/A
Diluted EPS	1.68▲	1.27•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$34.4B	$34.6B	N/A
Total Debt	$14.1B▲	$14.0B•	N/A
Working Capital	$10.7B▲	$10.6B•	N/A
Years to Pay Debt	9.09	12.08	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$844M▼	$1.3B•	N/A
Owner Earnings	$2.8B	$2.6B	N/A
CapEx % of Net Income	43.8%	79.5%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-1,700	-4,875
Tax Rate For Calcs	0	0
Normalized EBITDA	2,434,000	2,102,000
Total Unusual Items	-17,000	-32,000
Total Unusual Items Excluding Goodwill	-17,000	-32,000
Net Income From Continuing Operation Net Minority Interest	1,545,000	1,163,000
Reconciled Depreciation	562,000	557,000
Reconciled Cost Of Revenue	2,026,000	1,951,000
EBITDA	2,417,000	2,070,000
EBIT	1,855,000	1,513,000
Net Interest Income	-141,000	-141,000
Interest Expense	141,000	141,000
Normalized Income	1,560,300	1,190,125
Net Income From Continuing And Discontinued Operation	1,545,000	1,163,000
Total Expenses	3,000,000	2,918,000
Total Operating Income As Reported	1,808,000	1,473,000
Diluted Average Shares	914,000	911,000
Basic Average Shares	909,000	907,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,545,000	1,156,000
Net Income Common Stockholders	1,545,000	1,156,000
Otherunder Preferred Stock Dividend		7,000	6,000
Net Income	1,545,000	1,163,000
Net Income Including Noncontrolling Interests	1,545,000	1,163,000
Net Income Continuous Operations	1,545,000	1,163,000
Tax Provision	169,000	209,000
Pretax Income	1,714,000	1,372,000
Other Income Expense	30,000	8,000
Other Non Operating Income Expenses	47,000	40,000
Special Income Charges	-17,000	-32,000
Restructuring And Mergern Acquisition	17,000	0
Net Non Operating Interest Income Expense	-141,000	-141,000
Interest Expense Non Operating	141,000	141,000
Operating Income	1,825,000	1,505,000
Operating Expense	974,000	967,000
Research And Development	510,000	521,000
Selling General And Administration	464,000	446,000
Gross Profit	2,799,000	2,472,000
Cost Of Revenue	2,026,000	1,951,000
Total Revenue	4,825,000	4,423,000
Operating Revenue	4,825,000	4,423,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	831,000	834,000
Ordinary Shares Number	910,000	907,000
Share Issued	1,741,000	1,741,000
Net Debt	10,501,000	10,823,000
Total Debt	14,050,000	14,048,000
Tangible Book Value	12,125,000	11,705,000
Invested Capital	30,828,000	30,321,000
Working Capital	10,700,000	10,591,000
Net Tangible Assets	12,125,000	11,705,000
Capital Lease Obligations
Common Stock Equity	16,778,000	16,273,000
Total Capitalization	29,679,000	29,821,000
Total Equity Gross Minority Interest	16,778,000	16,273,000
Stockholders Equity	16,778,000	16,273,000
Gains Losses Not Affecting Retained Earnings	-84,000	-85,000
Other Equity Adjustments	-84,000	-85,000
Treasury Stock	42,084,000	42,130,000
Retained Earnings	52,483,000	52,236,000
Additional Paid In Capital	4,722,000	4,511,000
Capital Stock	1,741,000	1,741,000
Common Stock	1,741,000	1,741,000
Total Liabilities Net Minority Interest	17,615,000	18,312,000
Total Non Current Liabilities Net Minority Interest	14,519,000	15,153,000
Other Non Current Liabilities	1,434,000	1,415,000
Employee Benefits	121,000	124,000
Non Current Pension And Other Postretirement Benefit Plans	121,000	124,000
Non Current Deferred Liabilities	63,000	66,000
Non Current Deferred Taxes Liabilities	63,000	66,000
Long Term Debt And Capital Lease Obligation	12,901,000	13,548,000
Long Term Capital Lease Obligation
Long Term Debt	12,901,000	13,548,000
Current Liabilities	3,096,000	3,159,000
Other Current Liabilities		707,000	723,000
Current Debt And Capital Lease Obligation	1,149,000	500,000	750,000
Current Debt	1,149,000	500,000	750,000
Other Current Borrowings	1,149,000	500,000	750,000
Pensionand Other Post Retirement Benefit Plans Current	389,000	829,000
Payables And Accrued Expenses	1,558,000	1,123,000
Current Accrued Expenses	782,000	300,000
Payables	776,000	823,000
Total Tax Payable	138,000	67,000
Income Tax Payable	138,000	67,000
Accounts Payable	638,000	756,000
Total Assets	34,393,000	34,585,000
Total Non Current Assets	20,597,000	20,835,000
Other Non Current Assets	2,505,000	2,656,000
Defined Pension Benefit	321,000	324,000
Non Current Deferred Assets	973,000	967,000
Non Current Deferred Taxes Assets	973,000	967,000
Non Current Accounts Receivable
Goodwill And Other Intangible Assets	4,653,000	4,568,000
Other Intangible Assets	323,000	238,000
Goodwill	4,330,000	4,330,000
Net PPE	12,145,000	12,320,000
Accumulated Depreciation	-5,725,000	-5,362,000
Gross PPE	17,870,000	17,682,000
Other Properties
Machinery Furniture Equipment		10,690,000	8,717,000
Buildings And Improvements		6,830,000	6,424,000
Land And Improvements		162,000	113,000
Current Assets	13,796,000	13,750,000
Other Current Assets	1,753,000	2,102,000
Inventory	4,695,000	4,804,000
Finished Goods	1,877,000	1,967,000
Work In Process	2,355,000	2,372,000
Raw Materials	463,000	465,000
Receivables	2,245,000	1,963,000
Taxes Receivable
Accounts Receivable	2,245,000	1,963,000
Allowance For Doubtful Accounts Receivable	-32,000	-22,000
Gross Accounts Receivable	2,277,000	1,985,000
Cash Cash Equivalents And Short Term Investments	5,103,000	4,881,000
Other Short Term Investments	1,554,000	1,656,000
Cash And Cash Equivalents	3,549,000	3,225,000
Cash Equivalents	3,145,000	2,841,000
Cash Financial	404,000	384,000

Cash Flow

	2026	2025	2024
Free Cash Flow	844,000	1,329,000
Repurchase Of Capital Stock	-158,000	-403,000
Repayment Of Debt	0	0
Issuance Of Debt		0	0
Issuance Of Capital Stock	309,000	42,000
Capital Expenditure	-676,000	-925,000
Income Tax Paid Supplemental Data	0	89,000	56,000
End Cash Position	3,549,000	3,225,000
Beginning Cash Position	3,225,000	3,311,000
Changes In Cash	324,000	-86,000
Financing Cash Flow	-1,149,000	-1,664,000
Cash Flow From Continuing Financing Activities	-1,149,000	-1,664,000
Net Other Financing Charges	-9,000	-13,000
Cash Dividends Paid	-1,291,000	-1,290,000
Common Stock Dividend Paid	-1,291,000	-1,290,000
Net Common Stock Issuance	151,000	-361,000
Common Stock Payments	-158,000	-403,000
Common Stock Issuance	309,000	42,000
Net Issuance Payments Of Debt	0	0
Net Long Term Debt Issuance	0	0
Long Term Debt Payments	0	0
Long Term Debt Issuance		0	0
Investing Cash Flow	-47,000	-676,000
Cash Flow From Continuing Investing Activities	-47,000	-676,000
Net Other Investing Changes	521,000	19,000
Net Investment Purchase And Sale	108,000	230,000
Sale Of Investment	1,043,000	1,110,000
Purchase Of Investment	-935,000	-880,000
Capital Expenditure Reported	-676,000	-925,000
Operating Cash Flow	1,520,000	2,254,000
Cash Flow From Continuing Operating Activities	1,520,000	2,254,000
Change In Working Capital	-624,000	281,000
Change In Payables And Accrued Expense	-442,000	149,000
Change In Accrued Expense	-447,000	106,000
Change In Payable	5,000	43,000
Change In Account Payable	-125,000	20,000
Change In Tax Payable	130,000	23,000
Change In Income Tax Payable	130,000	23,000
Change In Prepaid Assets	-9,000	8,000
Change In Inventory	109,000	25,000
Change In Receivables	-282,000	99,000
Changes In Account Receivables	-282,000	99,000
Other Non Cash Items	-63,000	55,000
Stock Based Compensation	109,000	81,000
Deferred Tax	-4,000	115,000
Deferred Income Tax	-4,000	115,000
Depreciation Amortization Depletion	562,000	557,000
Depreciation And Amortization	562,000	557,000
Amortization Cash Flow	21,000	20,000
Amortization Of Intangibles	21,000	20,000
Depreciation	541,000	537,000
Operating Gains Losses	-5,000		-1,000
Net Income From Continuing Operations	1,545,000	1,163,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $4.1B ▲ $4.8B +18.6%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 56.8% ▲ 58.0% +1.2pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 44.9% ▲ 37.8% -7.0pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 29.0% ▲ 32.0% +3.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$4.8B/qtr (≈$19.3B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

4.46x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$844M

vs Positive

Operating Cash Flow

$1.5B

Latest quarter · Buffett's cash reality check

ROIC

4.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

17.5x

Net Assets: $16.8B

Asset Context — Semiconductors

This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry Comparison

Semiconductors — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
TXN	$322.86	$293.8B	55.28	58.0%	32.0%	$4.8B
NVDA NVIDIA Corporation	$210.69	$5,103.1B	32.3	74.1%	63.0%	$253.5B
AMD Advanced Micro Devices, Inc.	$537.37	$876.2B	179.7	53.1%	13.4%	$37.5B
INTC Intel Corporation	$133.99	$673.4B	N/A	37.2%	-5.9%	$53.8B
QCOM QUALCOMM Incorporated	$226.11	$238.3B	24.3	54.8%	22.3%	$44.5B
AVGO Broadcom Inc.	$411.35	$1,957.0B	68.2	76.3%	38.8%	$75.5B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.28%

Low — management has little skin in the game

Return on Equity (ROE)

9.2%

Adequate — returns are moderate

Return on Assets (ROA)

4.5%

Fair — average asset utilization

Share Buybacks (Latest Year)

$1.5B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.0% YoY

Debt is roughly stable

Leadership Team

Haviv Ilan

President, CEO & Chairman

Age 56

Pay: $4,669,421

0.302% of net income

Rafael Lizardi

Senior VP & CFO

Age 52

Pay: $2,312,941

0.150% of net income

Hagop Kozanian

Senior Vice President of Analog Signal Chain

Age 42

Pay: $2,397,946

0.155% of net income

Amichai Ron

Senior Vice President of Embedded Processing & DLP® Products

Age 47

Pay: $2,328,645

0.151% of net income

Christine Witzsche

Senior Vice President of Communications & Investor Relations

Age 40

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.96%	81,515,619
Vanguard Capital Management LLC	6.48%	58,978,704
State Street Corporation	4.73%	43,077,664
JPMORGAN CHASE & CO	4.22%	38,381,788
Vanguard Portfolio Management LLC	3.14%	28,611,951
Charles Schwab Investment Management, Inc.	2.85%	25,927,676
Geode Capital Management, LLC	2.59%	23,588,817
Invesco Ltd.	2.00%	18,211,850

Risk Analysis

Beta (Market Risk)

1.31

Moderate volatility — moves slightly more than market

Short Interest

2.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.84x

Conservative balance sheet — low financial risk

Current Ratio

4.46x

Strong liquidity — Graham approved

52-Week Price Range

Low: $152.73 Current: $322.86 High: $331.51

Currently at 95% of 52-week range

Texas Instruments Incorporated

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis