Texas Instruments (TXN)


Market Price (10/30/2026): $312.06 | Market Cap: $285.3 BilInvestor Relations Sector: Information Technology | Industry: Semiconductors

Texas Instruments (TXN)


Market Price (10/30/2026): $312.06
Market Cap: $285.3 Bil
Sector: Information Technology
Industry: Semiconductors

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

0

Attractive operating margins
Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 41%

Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 48%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 35%, CFO LTM is 9.9 Bil, FCF LTM is 7.3 Bil

Stock buyback support
Stock Buyback 3Y Total is 2.7 Bil

Low stock price volatility
Vol 12M is 42%

Megatrend and thematic drivers
Megatrends include Artificial Intelligence, Automation & Robotics, Electric Vehicles & Autonomous Driving, and Smart Grids & Grid Modernization. Show more.

Key risks
TXN key risks include [1] a massive capital expenditure program to build out manufacturing capacity, Show more.

0 Attractive operating margins
Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 41%
1 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 48%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 35%, CFO LTM is 9.9 Bil, FCF LTM is 7.3 Bil
2 Stock buyback support
Stock Buyback 3Y Total is 2.7 Bil
3 Low stock price volatility
Vol 12M is 42%
4 Megatrend and thematic drivers
Megatrends include Artificial Intelligence, Automation & Robotics, Electric Vehicles & Autonomous Driving, and Smart Grids & Grid Modernization. Show more.
5 Key risks
TXN key risks include [1] a massive capital expenditure program to build out manufacturing capacity, Show more.

TXN in ETFs

Weight = TXN's share of each fund

SPY0.41%
VOO0.39%
IVV0.39%
VTI0.35%
ITOT0.38%
QQQ1.2%
QQQM1.1%
IWB0.37%
+45 more covered ETFs

Valuation & Metrics

Price Chart

Why The Stock Moved

Qualitative Assessment

AI Analysis | Feedback

Updated on 10/27/2026

Texas Instruments (TXN) stock has gained about 5% since 6/30/2026 because of the following key factors:

1. Strong Fiscal Q3 2026 Earnings Outperformance and Upbeat Fiscal Q4 Guidance. Texas Instruments reported robust results for fiscal Q3 2026 (ending September 30, 2026) on October 21, 2026, significantly beating analyst expectations. The company posted revenue of $6.06 billion, a 28% increase year-over-year and 11% sequentially, surpassing consensus estimates of approximately $5.92 billion. Diluted earnings per share (EPS) reached $2.62, up 77% year-over-year, beating analyst consensus of roughly $2.42. Furthermore, Texas Instruments issued strong fiscal Q4 2026 guidance, projecting revenue between $5.8 billion and $6.3 billion and EPS from $2.45 to $2.79, both of which topped analyst estimates and suggested stronger underlying demand than typical seasonal trends.

2. Robust and Broad-Based Demand Across Key End Markets. The company experienced broad-based growth across its industrial, automotive, and data center markets, indicating strong product relevance and market positioning. In fiscal Q3 2026, industrial revenue surged more than 40% year-over-year, while automotive revenue increased in the mid-teens, and data center revenue saw a significant jump of approximately 95% year-over-year. This widespread demand contributed significantly to the company's strong top-line performance.

Show more
Updated on 10/27/2026

Texas Instruments (TXN) stock has gained about 5% since 6/30/2026 because of the following key factors:

1. Strong Fiscal Q3 2026 Earnings Outperformance and Upbeat Fiscal Q4 Guidance. Texas Instruments reported robust results for fiscal Q3 2026 (ending September 30, 2026) on October 21, 2026, significantly beating analyst expectations. The company posted revenue of $6.06 billion, a 28% increase year-over-year and 11% sequentially, surpassing consensus estimates of approximately $5.92 billion. Diluted earnings per share (EPS) reached $2.62, up 77% year-over-year, beating analyst consensus of roughly $2.42. Furthermore, Texas Instruments issued strong fiscal Q4 2026 guidance, projecting revenue between $5.8 billion and $6.3 billion and EPS from $2.45 to $2.79, both of which topped analyst estimates and suggested stronger underlying demand than typical seasonal trends.

2. Robust and Broad-Based Demand Across Key End Markets. The company experienced broad-based growth across its industrial, automotive, and data center markets, indicating strong product relevance and market positioning. In fiscal Q3 2026, industrial revenue surged more than 40% year-over-year, while automotive revenue increased in the mid-teens, and data center revenue saw a significant jump of approximately 95% year-over-year. This widespread demand contributed significantly to the company's strong top-line performance.

3. Favorable Macroeconomic Trends in the Semiconductor Industry. The broader semiconductor market entered an upcycle in fiscal Q2 2026, with this momentum continuing to build throughout fiscal Q3 2026. The semiconductor industry as a whole was projected to achieve substantial earnings growth of 85.5% on 62.8% higher revenue in fiscal Q3 2026, benefiting companies like Texas Instruments. This industry-wide tailwind provided a supportive environment for TXN's stock appreciation.

4. Commitment to Shareholder Returns and Strong Free Cash Flow Generation. Texas Instruments underscored its commitment to shareholders by increasing its quarterly cash dividend by 7% to $1.52 per share, marking the 23rd consecutive year of dividend increases. Over the trailing twelve months, the company generated $8.4 billion in free cash flow, demonstrating its robust business model and ability to return capital to owners, with $5.8 billion returned to owners during this period.

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Stock Movement Drivers

Fundamental Drivers

The 5.0% change in TXN stock from 6/30/2026 to 10/29/2026 was primarily driven by a 17.7% change in the company's Net Income Margin (%).
(LTM values as of)630202610292026Change
Stock Price ($)296.55311.425.0%
Change Contribution By: 
Total Revenues ($ Mil)18,43820,76612.6%
Net Income Margin (%)29.1%34.3%17.7%
P/E Multiple50.240.0-20.3%
Shares Outstanding (Mil)909914-0.5%
Cumulative Contribution5.0%

LTM = Last Twelve Months as of date shown

Market Drivers

6/30/2026 to 10/29/2026
ReturnCorrelation
TXN5.0% 
Market (SPY)3.0%52.0%
Sector (XLK)-0.9%69.9%

Fundamental Drivers

The 62.1% change in TXN stock from 3/31/2026 to 10/29/2026 was primarily driven by a 21.1% change in the company's Net Income Margin (%).
(LTM values as of)331202610292026Change
Stock Price ($)192.17311.4262.1%
Change Contribution By: 
Total Revenues ($ Mil)17,68220,76617.4%
Net Income Margin (%)28.3%34.3%21.1%
P/E Multiple34.940.014.6%
Shares Outstanding (Mil)909914-0.5%
Cumulative Contribution62.1%

LTM = Last Twelve Months as of date shown

Market Drivers

3/31/2026 to 10/29/2026
ReturnCorrelation
TXN62.1% 
Market (SPY)18.6%47.0%
Sector (XLK)42.2%52.4%

Fundamental Drivers

The 73.9% change in TXN stock from 9/30/2025 to 10/29/2026 was primarily driven by a 24.5% change in the company's Total Revenues ($ Mil).
(LTM values as of)930202510292026Change
Stock Price ($)179.09311.4273.9%
Change Contribution By: 
Total Revenues ($ Mil)16,67520,76624.5%
Net Income Margin (%)30.2%34.3%13.3%
P/E Multiple32.340.024.0%
Shares Outstanding (Mil)908914-0.7%
Cumulative Contribution73.9%

LTM = Last Twelve Months as of date shown

Market Drivers

9/30/2025 to 10/29/2026
ReturnCorrelation
TXN73.9% 
Market (SPY)16.4%45.0%
Sector (XLK)34.5%48.3%

Fundamental Drivers

The 113.4% change in TXN stock from 9/30/2023 to 10/29/2026 was primarily driven by a 132.2% change in the company's P/E Multiple.
(LTM values as of)930202310292026Change
Stock Price ($)145.93311.42113.4%
Change Contribution By: 
Total Revenues ($ Mil)18,82120,76610.3%
Net Income Margin (%)40.8%34.3%-16.1%
P/E Multiple17.240.0132.2%
Shares Outstanding (Mil)908914-0.7%
Cumulative Contribution113.4%

LTM = Last Twelve Months as of date shown

Market Drivers

9/30/2023 to 10/29/2026
ReturnCorrelation
TXN113.4% 
Market (SPY)86.2%56.3%
Sector (XLK)134.4%56.0%

Return vs. Risk

Price Returns Compared

 202120222023202420252026Total [1]
Returns
TXN Return18%-10%6%13%-4%82%121%
Peers Return51%-15%48%10%17%29%220%
S&P 500 Return27%-19%24%23%16%13%106%

Monthly Win Rates [3]
TXN Win Rate67%42%58%50%50%50% 
Peers Win Rate67%42%67%40%50%52% 
S&P 500 Win Rate75%42%67%75%67%50% 

Max Drawdowns [4]
TXN Max Drawdown-10%-22%-23%-16%-30%-23% 
Peers Max Drawdown-17%-34%-25%-28%-41%-34% 
S&P 500 Max Drawdown-5%-25%-10%-8%-19%-9% 


[1] Cumulative total returns since the beginning of 2021
[2] Peers: ADI, NXPI, MCHP, ON, AVGO. See TXN Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 10/29/2026 (YTD)

How Low Can It Go

EventTXNS&P 500
2025 US Tariff Shock
  % Loss-25.8%-18.8%
  % Gain to Breakeven34.8%23.1%
  Time to Breakeven49 days79 days
2024 Yen Carry Trade Unwind
  % Loss-10.4%-7.8%
  % Gain to Breakeven11.7%8.5%
  Time to Breakeven15 days18 days
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-23.3%-9.5%
  % Gain to Breakeven30.3%10.5%
  Time to Breakeven189 days24 days
2022 Inflation Shock & Fed Tightening
  % Loss-21.0%-24.5%
  % Gain to Breakeven26.6%32.4%
  Time to Breakeven216 days427 days
2020 COVID-19 Crash
  % Loss-29.8%-33.7%
  % Gain to Breakeven42.4%50.9%
  Time to Breakeven84 days140 days
Q4 2018 Fed Policy Error / Growth Scare
  % Loss-18.1%-19.2%
  % Gain to Breakeven22.2%23.8%
  Time to Breakeven44 days105 days

Compare to ADI, NXPI, MCHP, ON, AVGO

In The Past

Texas Instruments's stock fell -25.8% during the 2025 US Tariff Shock. Such a loss loss requires a 34.8% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

EventTXNS&P 500
2025 US Tariff Shock
  % Loss-25.8%-18.8%
  % Gain to Breakeven34.8%23.1%
  Time to Breakeven49 days79 days
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-23.3%-9.5%
  % Gain to Breakeven30.3%10.5%
  Time to Breakeven189 days24 days
2022 Inflation Shock & Fed Tightening
  % Loss-21.0%-24.5%
  % Gain to Breakeven26.6%32.4%
  Time to Breakeven216 days427 days
2020 COVID-19 Crash
  % Loss-29.8%-33.7%
  % Gain to Breakeven42.4%50.9%
  Time to Breakeven84 days140 days
2011 US Debt Ceiling Crisis & European Contagion
  % Loss-21.6%-17.9%
  % Gain to Breakeven27.5%21.8%
  Time to Breakeven66 days123 days
2008-2009 Global Financial Crisis
  % Loss-58.6%-53.4%
  % Gain to Breakeven141.8%114.4%
  Time to Breakeven630 days1085 days

Compare to ADI, NXPI, MCHP, ON, AVGO

In The Past

Texas Instruments's stock fell -25.8% during the 2025 US Tariff Shock. Such a loss loss requires a 34.8% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

About Texas Instruments (TXN)

Texas Instruments (TXN) is a global semiconductor company that designs, manufactures, and sells a wide range of integrated circuits to electronics designers and manufacturers. Essentially, they create the foundational electronic components that enable modern technology to function, specializing in chips that manage power and process signals crucial for various electronic systems.

The company operates primarily through two segments: Analog and Embedded Processing. The Analog segment produces power management chips that regulate electricity in devices, along with signal chain products like amplifiers and data converters that sense and process real-world signals. The Embedded Processing segment focuses on microcontrollers, digital signal processors (DSPs), and applications processors, which act as the "brains" of electronic devices, performing computations and controlling various functions. Beyond these core segments, Texas Instruments also develops DLP products for high-definition images in projectors, as well as calculators and application-specific integrated circuits.

Texas Instruments serves a vast array of end markets globally. Its semiconductors are critical components for industries such as industrial automation, automotive electronics, personal electronics (like smartphones and computers), communications equipment, and enterprise systems. The company sells its products directly to customers, through a network of distributors, and via its website, providing essential building blocks for countless electronic products worldwide.

AI Analysis | Feedback

Here are 1-3 brief analogies for Texas Instruments (TXN):

  • The 3M of semiconductors: Similar to how 3M makes a vast array of essential, often unseen components and materials used across countless industries, Texas Instruments provides a wide range of foundational microchips that power almost all modern electronic devices.
  • The Intel for 'everything else' electronic: If Intel builds the main processing 'brains' for computers, Texas Instruments makes many of the essential 'nervous system' and power management chips that enable nearly every other electronic device, from cars and industrial equipment to personal gadgets.

AI Analysis | Feedback

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  • Analog Power Products: Semiconductors designed to efficiently manage power requirements in various electronic systems.
  • Analog Signal Chain Products: Semiconductors that sense, condition, and measure signals for processing and control in electronic devices.
  • Microcontrollers (MCUs): Integrated circuits used for controlling specific functions within electronic equipment.
  • Digital Signal Processors (DSPs): Specialized microprocessors optimized for rapid mathematical computations.
  • Applications Processors: Advanced processors designed for specific computing activities in a wide range of devices.
  • DLP Products: Digital micromirror devices primarily utilized in projectors to create high-definition images.
  • Calculators: Handheld electronic devices used for performing mathematical computations.
  • Application-Specific Integrated Circuits (ASICs): Custom-designed integrated circuits tailored for particular applications.
```

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Haviv Ilan, Chairman, President and Chief Executive Officer

Haviv Ilan became Chairman of the board in 2026 and President and Chief Executive Officer of Texas Instruments (TI) in 2023, having served on the company's board of directors since 2021. He began his career at TI in 1999 when the company acquired Butterfly, a wireless startup company he was involved with. Prior to becoming CEO, Ilan served as executive vice president and chief operating officer, overseeing TI's business and sales organizations, technology and manufacturing operations, and IT solutions. He holds bachelor's and master's degrees in electrical engineering from Tel Aviv University and an MBA from the Joint International Executive MBA Program at Northwestern University's Kellogg School of Management and Tel Aviv University's Leon Recanati Graduate School of Business Administration.

Rafael Lizardi, Senior Vice President and Chief Financial Officer

Rafael Lizardi is a Senior Vice President and Chief Financial Officer of Texas Instruments. He joined TI in 2001 and has held various leadership positions in finance and operations, including corporate controller. Prior to joining TI, he served five years as a captain in the U.S. Army Corps of Engineers. Lizardi holds a bachelor's degree in electrical engineering from The U.S. Military Academy at West Point and a Master of Business Administration from Stanford University. He is also a Certified Management Accountant.

Ahmad S. Bahai, Senior Vice President and Chief Technology Officer

Ahmad S. Bahai serves as the Senior Vice President and Chief Technology Officer at Texas Instruments, where he is responsible for driving the company's technological vision and strategy, including overseeing research and development efforts. Before joining Texas Instruments, he co-founded Iospan Wireless Inc. His background also includes roles such as Chief Technology Officer at National Semiconductor and Co-Founder of Algorex Corporation. Dr. Bahai holds a Research Doctorate in Electrical and Electronics Engineering from the University of California, Berkeley, and a Master of Science from Imperial College London. He has also been a professor at both MIT and Stanford University.

Krunali Patel, Senior Vice President and Chief Information Officer, Information Technology (IT) Solutions

Krunali Patel is the Senior Vice President and Chief Information Officer of Texas Instruments, responsible for the Information Technology Solutions organization. She joined TI in 1996. Throughout her career at TI, which spans over two decades, she has held various roles, including Electrical Design Engineer and Vice President of Information Technology. Prior to her current role, Patel served as vice president of TI's design and manufacturing IT solutions organization, where she led the development and implementation of information technology strategies and roadmaps for manufacturing automation.

Amichai Ron, Senior Vice President, Embedded Processing and DLP Products

Amichai Ron is a Senior Vice President overseeing Embedded Processing and DLP Products at Texas Instruments.

AI Analysis | Feedback

  • The cyclical nature of the semiconductor industry and fluctuations in demand across its key end markets (industrial, automotive, personal electronics, communications equipment, and enterprise systems) pose a significant risk to Texas Instruments. Economic downturns or shifts in technology adoption within these markets can lead to reduced orders and revenue.
  • Intense competition within the analog and embedded processing semiconductor markets, coupled with rapid technological advancements, presents a continuous risk of pricing pressure and product obsolescence. Texas Instruments must constantly innovate to maintain its competitive edge and market share.
  • Global supply chain disruptions and geopolitical risks, such as trade tensions and restrictions on technology transfer, could adversely impact Texas Instruments' manufacturing operations, raw material procurement, and ability to sell products in key international markets.

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Texas Instruments (TXN) operates in significant addressable markets for its semiconductor products, specifically within the Analog and Embedded Processing segments. The company's main products, including analog semiconductors, microcontrollers, and digital signal processors, serve substantial global markets.

Analog Segment

The global analog semiconductors market was valued at approximately USD 87.5 billion in 2024 and is projected to grow to about USD 178.9 billion by 2034, with a compound annual growth rate (CAGR) of 7.4% from 2025 to 2034. Another estimate places the global analog semiconductor market size at USD 101.22 billion in 2024, anticipated to reach USD 180.24 billion by 2034, expanding at a CAGR of 5.94% from 2025 to 2034. The market for analog semiconductors was also reported at USD 88.65 billion in 2023, with projections to reach USD 156.4 billion by 2032.

Embedded Processing Segment

Microcontrollers

The global microcontroller market size was estimated at USD 40.23 billion in 2025 and is projected to reach USD 105.32 billion by 2033, growing at a CAGR of 13.0% from 2026 to 2033. Other reports indicate the global microcontroller market size was USD 28.8 billion in 2024, with a projection to reach USD 67.4 billion by 2032 at a CAGR of 11.4% from 2025 to 2032. Additionally, the market was valued at USD 34.75 billion in 2025 and is estimated to grow to USD 62.74 billion by 2031.

Digital Signal Processors (DSPs)

The global Digital Signal Processors (DSP) market size was approximately USD 17.23 billion in 2025, expected to grow to USD 18.75 billion in 2026, and is projected to reach USD 25.16 billion by 2030. Another analysis estimates the global DSP market size at USD 25.69 billion in 2024, with a projection to reach USD 59.30 billion by 2035, exhibiting a CAGR of 7.9% during 2025-2035. The market was also valued at USD 11.02 billion in 2025 and is projected to grow to USD 21.87 billion by 2034.

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Here are 3-5 expected drivers of future revenue growth for Texas Instruments (symbol: TXN) over the next 2-3 years:

  1. Strong Growth in Industrial, Automotive, and Data Center Markets: Texas Instruments has strategically focused on these three markets, which collectively represented approximately 75% of its revenue in 2025, a significant increase from 43% in 2013. These segments are anticipated to be the primary drivers of growth for the foreseeable future. Specifically, the industrial market saw a 12% year-on-year increase in 2025 and is expected to experience a broad-based rebound. The automotive sector grew 6% year-on-year in 2025. The data center market has shown particularly robust growth, with a 64% year-on-year increase in 2025 and a 70% year-over-year surge in Q4 2025. Analysts project the data center business to account for over 12% of total revenue in 2026, up from about 9% in 2025, driven by trends toward higher power density and AI applications.
  2. Advantage from 300mm Manufacturing Capacity Expansion: The company is concluding a six-year period of elevated capital expenditures aimed at expanding its 300-millimeter wafer fabrication capacity. These investments are designed to provide dependable, low-cost manufacturing at scale, which is expected to reduce costs, ensure future supply, and enable Texas Instruments to achieve higher margins as chip demand normalizes. This strengthened manufacturing capability is a key competitive advantage.
  3. Acquisition of Silicon Labs' Analog and Mixed-Signal Assets: Texas Instruments announced its intention to acquire the analog and mixed-signal assets from Silicon Labs, with the transaction expected to close in the first half of 2027. This acquisition is expected to bolster TI's industrial exposure and integrate a broad wireless connectivity portfolio, thereby enhancing its IoT capabilities. The company anticipates revenue synergies by integrating these newly acquired products into its existing distribution channels and leveraging its e-commerce platform.
  4. Broad Product Portfolio and Diversified End Markets: Texas Instruments benefits from a diverse product portfolio across its Analog and Embedded Processing segments, serving a wide array of end markets including industrial, automotive, personal electronics, and communications equipment. This diversification provides resilience against market seasonality and cyclical downturns and positions the company to capitalize on new technological advancements across these sectors. The Analog segment, which constituted a substantial 77.6% of the company's total revenues in Q2 2025, continues to expand rapidly.
  5. Improving Semiconductor Market Conditions and Order Rates: The broader semiconductor market is showing signs of recovery, which is positively impacting Texas Instruments. The company has reported increasing orders, contributing to its positive forward guidance. Analysts have noted improved order rates, particularly from industrial and data center clients, suggesting that the overall semiconductor recovery is allowing Texas Instruments to project growth above typical seasonal patterns.

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Share Repurchases

  • Texas Instruments' annual share repurchases were approximately $527 million in 2021, $3.615 billion in 2022, $293 million in 2023, $929 million in 2024, and $1.477 billion in 2025.
  • In September 2022, the board authorized an additional $15 billion for common stock repurchases, supplementing approximately $8.2 billion remaining from prior authorizations as of June 2022.
  • Texas Instruments returned $6.48 billion to shareholders through dividends and buybacks in 2025.

Outbound Investments

  • In February 2026, Texas Instruments entered into a definitive agreement to acquire Silicon Labs for approximately $7.5 billion in an all-cash transaction, expected to close in the first half of 2027. This acquisition is aimed at expanding TI's embedded wireless connectivity solutions portfolio and leveraging its new fabrication plants.

Capital Expenditures

  • Capital expenditures amounted to $2.462 billion in 2021, $2.797 billion in 2022, $5.071 billion in 2023, and $4.82 billion in 2024. For 2025, actual capital expenditures totaled $4.55 billion.
  • The company's capital expenditures for 2026 are projected to significantly decrease to a range of $2 billion to $3 billion.
  • The primary focus of these substantial capital expenditures has been a multi-year, multi-billion dollar investment plan to expand internal 300mm wafer fabrication capacity across new facilities in Texas (Richardson, Sherman) and Utah, as part of a larger plan to invest over $60 billion in U.S. manufacturing.

Better Bets vs. Texas Instruments (TXN)

Peer Outperformance in Semiconductors

TXN has outperformed 74% of its 54 Semiconductors peers over 5Y. Among the peers that beat it are ADI and PENG. Semiconductors ranks 6th of 12 industries in Information Technology by median 5Y return.
Share of Semiconductors constituents that TXN has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
89%
of 64 industry peers · 99.4% return
3Y
68%
of 57 industry peers · 139.3% return
5Y
74%
of 54 industry peers · 90.2% return
Semiconductors peers with revenue growth within 4pp of TXN's that beat it on at least 2 of 3 windows, and by at least 20pp over 5Y. Growth is matched by construction, so the gap is largely a re-rating gap. The multiple column is the context for it.
Ticker Name Rev Growth 3Y Avg P/E 1Y3Y5Y 5Y Gap
TXN Texas Instruments 5.6% 40.0x 99.4%139.3%90.2% —
ADI Analog Devices 5.4% 50.9x 86.6%191.3%171.5% +81pp
PENG Penguin Solutions 8.2% 18.1x 162.6%337.1%119.9% +30pp
Price returns, excluding dividends. P/E shown for context only and not used for matching.
Median price return by industry across the Information Technology sector, ranked by 5Y. Semiconductors is TXN's own industry. Use this to see which corners of the sector have carried the returns.
Industry Names 1Y med3Y med5Y med Top 3 by 5Y
Electronic Manufacturing Services 10 33.8%133.1%253.1% FLEX 650% · TTMI 562% · JBL 387%
Technology Distributors 9 42.2%96.0%90.9% AVT 174% · SNX 159% · CNXN 97%
Semiconductor Materials & Equipment 28 55.9%84.8%71.4% AXTI 645% · LRCX 375% · KLAC 372%
Communications Equipment 36 8.9%87.9%58.8% LITE 1014% · AAOI 935% · ANET 619%
Electronic Components 26 1.3%71.6%56.0% CLS 2779% · BELFA 1192% · APH 347%
Semiconductors ← 55 5.9%59.0%17.8% MU 1285% · NVDA 739% · AVGO 609%
Technology Hardware, Storage & Peripherals 21 13.9%107.7%9.1% WDC 916% · SMCI 873% · DELL 846%
Internet Services & Infrastructure 6 8.4%51.8%-1.7% GDDY 53% · VRSN 40% · DOCN 2%
Electronic Equipment & Instruments 27 -7.2%33.9%-4.7% PI 162% · OSIS 124% · KEYS 83%
IT Consulting & Other Services 30 -26.5%-2.8%-25.2% CHRN 410821% · APLD 314% · ADEA 168%
Application Software 126 -17.7%-4.3%-47.1% PLTR 659% · FROG 202% · AGYS 143%
Systems Software 69 -8.4%34.0%-49.2% ZETA 296% · CRWD 271% · CVLT 179%
Median of constituents with a full price history over each window. Top names are limited to companies above $2B market cap.

Latest Trefis Analyses

Recent Active Movers

Peer Comparisons

Peers to compare with:

Financials

TXNADINXPIMCHPONAVGOMedian
NameTexas In.Analog D.NXP Semi.Microchi.ON Semic.Broadcom  
Mkt Price312.06431.79262.4479.9173.03335.13287.25
Mkt Cap284.6209.966.243.428.51,597.2138.0
Rev LTM19,45313,88213,7985,1226,19889,10413,840
Op Inc LTM7,4054,9593,9408311,11943,2374,449
FCF LTM5,3554,9373,3331,1111,50039,4034,135
FCF 3Y Avg2,7843,8542,5671,2891,22127,6632,676
CFO LTM8,6675,5453,8001,1981,67240,6534,673
CFO 3Y Avg7,1854,5663,2161,4241,84828,4263,891

Growth & Margins

TXNADINXPIMCHPONAVGOMedian
NameTexas In.Analog D.NXP Semi.Microchi.ON Semic.Broadcom  
Rev Chg LTM16.7%33.6%14.6%20.9%-3.1%48.7%18.8%
Rev Chg 3Y Avg1.9%5.4%2.0%-13.2%-9.2%36.2%1.9%
Rev Chg Q22.8%39.6%19.3%38.0%9.2%85.5%30.4%
QoQ Delta Rev Chg LTM5.5%9.0%4.6%8.7%2.2%18.1%7.1%
Op Inc Chg LTM27.3%88.6%31.3%299.4%-0.3%85.0%58.2%
Op Inc Chg 3Y Avg-2.4%19.0%3.7%55.6%-22.4%45.6%11.4%
Op Mgn LTM38.1%35.7%28.6%16.2%18.0%48.5%32.1%
Op Mgn 3Y Avg36.4%28.1%27.3%16.5%21.7%39.4%27.7%
QoQ Delta Op Mgn LTM2.0%2.8%1.2%5.0%0.5%4.5%2.4%
CFO/Rev LTM44.6%39.9%27.5%23.4%27.0%45.6%33.7%
CFO/Rev 3Y Avg41.1%40.4%24.7%25.6%27.3%43.0%33.8%
FCF/Rev LTM27.5%35.6%24.2%21.7%24.2%44.2%25.9%
FCF/Rev 3Y Avg15.3%33.8%19.7%23.2%18.5%41.9%21.4%

Valuation

TXNADINXPIMCHPONAVGOMedian
NameTexas In.Analog D.NXP Semi.Microchi.ON Semic.Broadcom  
Mkt Cap284.6209.966.243.428.51,597.2138.0
P/S14.615.14.88.54.617.911.5
P/Op Inc38.442.316.852.225.536.937.7
P/EBIT38.141.514.355.236.636.637.4
P/E47.050.820.590.645.241.746.1
P/CFO32.837.817.436.217.039.334.5
Total Yield4.0%3.0%6.7%3.4%2.1%3.0%3.2%
Dividend Yield1.8%1.0%1.6%2.3%0.0%0.7%1.3%
FCF Yield 3Y Avg1.2%2.7%4.3%2.8%4.3%2.1%2.7%
D/E0.00.00.20.10.20.00.1
Net D/E0.00.00.10.10.00.00.0

Returns

TXNADINXPIMCHPONAVGOMedian
NameTexas In.Analog D.NXP Semi.Microchi.ON Semic.Broadcom  
1M Rtn12.1%9.2%11.1%2.5%-3.5%-4.1%5.8%
3M Rtn15.6%22.6%9.4%12.6%-7.4%-9.3%11.0%
6M Rtn17.1%11.6%-8.6%-10.4%-26.1%-17.1%-9.5%
12M Rtn91.8%82.7%25.4%28.9%41.0%-9.5%34.9%
3Y Rtn137.6%181.8%54.5%19.3%-12.6%312.9%96.0%
1M Excs Rtn9.8%7.5%10.0%0.5%-4.8%-6.5%4.0%
3M Excs Rtn8.4%14.0%3.2%3.0%-16.8%-17.4%3.1%
6M Excs Rtn8.5%3.0%-17.4%-18.9%-34.4%-25.2%-18.2%
12M Excs Rtn76.2%67.2%7.4%14.4%26.4%-18.8%20.4%
3Y Excs Rtn48.2%91.8%-35.4%-68.1%-93.4%221.8%6.4%

Financials

Segment Financials

Revenue by Segment
$ Mil20252024202320222021
Analog14,00612,16113,04015,35914,050
Embedded Processing2,6972,5333,3683,2613,049
Other9799471,1111,4081,245
Total17,68215,64117,51920,02818,344


Operating Income by Segment
$ Mil20252024202320222021
Analog5,4124,6085,8218,3597,393
Other307505502528393
Embedded Processing3043521,0081,2531,174
Total6,0235,4657,33110,1408,960


Assets by Segment
$ Mil20072006200520042002
Semiconductor6,7577,1156,4726,4596,251
Educational Technology108103   
Educational & Productivity Solutions  909196
Sensors & Controls  479413383
Total6,8657,2187,0416,9636,730


Price Behavior

Price Behavior
Market Price$311.42 
Market Cap ($ Bil)284.6 
First Trading Date06/01/1972 
Distance from 52W High-5.8% 
   50 Days200 Days
DMA Price$274.93$257.77
DMA Trendindeterminateup
Distance from DMA13.3%20.8%
 3M1YR
Volatility31.6%42.5%
Downside Capture114.03102.27
Upside Capture157.91165.76
Correlation (S&P 500)43.6%43.6%
TXN Betas & Captures as of 9/30/2026

 1M2M3M6M1Y3Y
Beta0.841.051.531.831.461.36
Up Beta-1.061.331.741.801.411.52
Down Beta2.441.492.342.861.891.42
Up Capture132%89%111%206%188%178%
Bmk +ve Days6162766132424
Stock +ve Days14233368130387
Down Capture-12%92%152%131%110%105%
Bmk -ve Days16263760120328
Stock -ve Days8193158120362

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with TXN
TXN91.9%42.5%1.63-
Sector ETF (XLK)25.6%26.7%0.8247.9%
Equity (SPY)13.0%12.7%0.6744.3%
Gold (GLD)1.2%28.4%0.0324.8%
Commodities (DBC)49.5%20.6%1.83-6.8%
Real Estate (VNQ)7.2%14.0%0.256.2%
Bitcoin (BTCUSD)-29.5%43.4%-0.6917.9%

Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with TXN
TXN12.3%33.8%0.40-
Sector ETF (XLK)19.8%26.0%0.6763.9%
Equity (SPY)12.6%17.1%0.5562.5%
Gold (GLD)17.2%18.9%0.7313.5%
Commodities (DBC)9.4%19.5%0.3610.4%
Real Estate (VNQ)1.0%18.9%-0.0639.6%
Bitcoin (BTCUSD)5.1%51.6%0.2823.7%

Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with TXN
TXN19.4%31.9%0.62-
Sector ETF (XLK)24.3%25.1%0.8871.2%
Equity (SPY)15.4%17.9%0.7368.9%
Gold (GLD)11.8%16.4%0.589.9%
Commodities (DBC)8.1%18.1%0.3618.3%
Real Estate (VNQ)5.2%20.7%0.2143.9%
Bitcoin (BTCUSD)62.3%66.2%1.0216.8%

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Short Interest

Short Interest: As Of Date10152026
Short Interest: Shares Quantity20.2 Mil
Short Interest: % Change Since 9302026-1.1%
Average Daily Volume4.8 Mil
Days-to-Cover Short Interest4.2 days
Basic Shares Quantity914.0 Mil
Short % of Basic Shares2.2%

Earnings Returns History

Updated 10/30/2026
Expand for More
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
10/21/2026-1.8%8.8% 
7/22/2026-3.1%-7.8%-9.3%
4/22/202619.4%13.9%26.9%
1/27/20269.9%15.3%8.8%
10/21/2025-5.6%-7.7%-12.4%
7/22/2025-13.3%-11.0%-5.9%
4/23/20256.6%6.1%19.5%
1/23/2025-7.5%-7.6%0.8%
...
SUMMARY STATS   
# Positive81313
# Negative171211
Median Positive6.1%6.1%5.8%
Median Negative-3.5%-4.4%-4.2%
Max Positive19.4%15.3%26.9%
Max Negative-13.3%-11.0%-12.4%
Collapse to Preview
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
10/21/2026-1.8%8.8% 
7/22/2026-3.1%-7.8%-9.3%
4/22/202619.4%13.9%26.9%
1/27/20269.9%15.3%8.8%
10/21/2025-5.6%-7.7%-12.4%
7/22/2025-13.3%-11.0%-5.9%
4/23/20256.6%6.1%19.5%
1/23/2025-7.5%-7.6%0.8%
10/22/20244.0%9.0%2.8%
7/23/2024-0.0%1.4%5.8%
4/23/20245.6%6.6%23.3%
1/23/2024-2.4%-6.3%-4.4%
10/24/2023-3.5%-2.5%5.7%
7/25/2023-5.4%-3.5%-8.1%
4/25/2023-2.9%-3.2%-0.6%
1/24/2023-1.1%0.8%-2.3%
10/25/2022-2.6%1.3%11.3%
7/26/20226.7%10.9%7.8%
4/26/20220.6%2.4%1.6%
1/25/20222.5%4.9%-1.9%
10/26/2021-5.0%-3.3%-1.1%
7/21/2021-5.3%-3.3%-4.2%
4/27/2021-4.4%-5.4%-0.4%
1/26/2021-5.0%2.5%0.1%
10/20/2020-3.1%-2.5%2.5%
SUMMARY STATS   
# Positive81313
# Negative171211
Median Positive6.1%6.1%5.8%
Median Negative-3.5%-4.4%-4.2%
Max Positive19.4%15.3%26.9%
Max Negative-13.3%-11.0%-12.4%

SEC Filings

Expand for More
Report DateFiling DateFiling
09/30/202610/23/202610-Q
06/30/202607/24/202610-Q
03/31/202604/24/202610-Q
12/31/202502/06/202610-K
09/30/202510/23/202510-Q
06/30/202507/29/202510-Q
03/31/202504/24/202510-Q
12/31/202402/14/202510-K
09/30/202410/23/202410-Q
06/30/202407/24/202410-Q
03/31/202404/24/202410-Q
12/31/202302/02/202410-K
09/30/202310/25/202310-Q
06/30/202307/26/202310-Q
03/31/202304/26/202310-Q
12/31/202202/03/202310-K
Collapse to Preview
Report DateFiling DateFiling
09/30/202610/23/202610-Q
06/30/202607/24/202610-Q
03/31/202604/24/202610-Q
12/31/202502/06/202610-K
09/30/202510/23/202510-Q
06/30/202507/29/202510-Q
03/31/202504/24/202510-Q
12/31/202402/14/202510-K
09/30/202410/23/202410-Q
06/30/202407/24/202410-Q
03/31/202404/24/202410-Q
12/31/202302/02/202410-K
09/30/202310/25/202310-Q
06/30/202307/26/202310-Q
03/31/202304/26/202310-Q
12/31/202202/03/202310-K
09/30/202210/26/202210-Q
06/30/202207/27/202210-Q
03/31/202204/27/202210-Q
12/31/202102/04/202210-K
09/30/202110/27/202110-Q
06/30/202107/22/202110-Q
03/31/202104/28/202110-Q
12/31/202002/05/202110-K
09/30/202010/21/202010-Q
06/30/202007/22/202010-Q
03/31/202004/22/202010-Q
12/31/201902/20/202010-K

Recent Forward Guidance

Updated 10/22/2026

Latest: Q3 2026 Earnings Reported 10/21/2026

Forward GuidanceGuidance Change
MetricSourceLowMidHigh% Chg% DeltaChangePrior
Q4 2026 RevenueReported5.80 Bil6.05 Bil6.30 Bil2.5% Higher NewGuidance: 5.90 Bil for Q3 2026
Q4 2026 EPSReported2.452.622.799.2% Higher NewGuidance: 2.4 for Q3 2026


Prior: Q2 2026 Earnings Reported 7/22/2026

Forward GuidanceGuidance Change
MetricSourceLowMidHigh% Chg% DeltaChangePrior
Q3 2026 RevenueReported5.65 Bil5.90 Bil6.15 Bil13.5% Higher NewGuidance: 5.20 Bil for Q2 2026
Q3 2026 EPSReported2.232.42.5725.7% Higher NewGuidance: 1.91 for Q2 2026

Q1 2026 Earnings Reported 4/22/2026

Forward GuidanceGuidance Change
MetricSourceLowMidHigh% Chg% DeltaChangePrior
Q2 2026 RevenueReported5.00 Bil5.20 Bil5.40 Bil15.6% Higher NewGuidance: 4.50 Bil for Q1 2026
Q2 2026 Earnings per shareReported1.771.912.0541.5% Higher NewGuidance: 1.35 for Q1 2026

Q4 2025 Earnings Reported 1/27/2026

Forward GuidanceGuidance Change
MetricSourceLowMidHigh% Chg% DeltaChangePrior
Q1 2026 RevenueReported4.32 Bil4.50 Bil4.68 Bil2.3% Higher NewGuidance: 4.40 Bil for Q4 2025
Q1 2026 EPSReported1.221.351.487.1% Higher NewGuidance: 1.26 for Q4 2025

Insider Activity

Updated 10/29/2026
Expand for More
#OwnerTitleHoldingActionFiling DatePriceSharesTransacted
Value
Value of
Held Shares
Form
1Clark, Janet F DirectSell10292026302.464,3061,302,4043,430,228Form
2Patsley, Pamela H DirectSell10292026301.564,5321,366,67010,399,900Form
3Sanchez, Robert E DirectSell10292026302.216,0651,832,9236,527,804Form
4Abraham, TsedeniyaSr. Vice PresidentDirectSell8312026264.637,0001,852,4136,134,398Form
5Craighead, Martin S DirectSell5292026320.4310,0003,204,2894,601,039Form
Collapse to Preview
#OwnerTitleHoldingActionFiling DatePriceSharesTransacted
Value
Value of
Held Shares
Form
1Clark, Janet F DirectSell10292026302.464,3061,302,4043,430,228Form
2Patsley, Pamela H DirectSell10292026301.564,5321,366,67010,399,900Form
3Sanchez, Robert E DirectSell10292026302.216,0651,832,9236,527,804Form
4Abraham, TsedeniyaSr. Vice PresidentDirectSell8312026264.637,0001,852,4136,134,398Form
5Craighead, Martin S DirectSell5292026320.4310,0003,204,2894,601,039Form
6Cox, Carrie Smith DirectSell5142026306.418,8382,708,02911,528,885Form
7Leonard, Shanon JSr. Vice PresidentDirectSell5122026295.224,9631,465,1867,341,281Form
8Knecht, Julie CVP & Chief Accounting OfficerDirectSell5042026278.709,9562,774,7862,541,789Form
9Gary, MarkSr. Vice PresidentDirectSell5012026279.2513,6893,822,67112,719,059Form
10Roberts, Mark TSr. Vice PresidentDirectSell5012026280.3428,0807,871,93415,084,790Form
11Yunus, MohammadSr. Vice PresidentDirectSell4302026270.4451,09813,818,95114,294,385Form
12Kane, KatharineSVP and General CounselDirectSell4282026270.416,1251,656,2836,817,667Form
13Bahai, AhmadSr. Vice PresidentDirectSell4282026268.403,660982,35911,412,278Form
14Leonard, Shanon JSr. Vice PresidentDirectSell4272026277.9518,1895,055,7078,887,582Form
15Bluedorn, Todd M DirectSell4272026274.254,3061,180,9302,246,399Form
16Ron, AmichaiSr. Vice PresidentDirectSell4272026272.4318,3655,003,21422,090,149Form
17Blinn, Mark A TrustSell4272026277.5115,000  Form
18Lizardi, Rafael RSr. Vice President & CFODirectSell4272026274.2340,54111,117,55623,442,547Form
19Patsley, Pamela H DirectSell4272026276.114,3061,188,9189,522,116Form
20Witzsche, ChristineSr. Vice PresidentDirectSell4272026275.523,625998,7717,058,070Form
21Kozanian, Hagop HSr. Vice PresidentDirectSell2182026225.956,8431,546,16817,042,188Form
22Bahai, AhmadSr. Vice PresidentDirectSell2122026230.796,5001,500,1179,805,687Form
23Gary, MarkSr. Vice PresidentDirectSell2122026230.1012,9212,973,10710,480,310Form
24Lizardi, Rafael RSr. Vice President & CFODirectSell2122026230.787,0961,637,61119,721,031Form
25Gary, MarkSr. Vice PresidentDirectSell2122026220.8310,2482,263,09810,058,285Form
26Lizardi, Rafael RSr. Vice President & CFODirectSell2122026220.7464,53214,244,53920,429,121Form
27Roberts, Mark TSr. Vice PresidentDirectSell2102026221.164,461986,60414,167,195Form
28Blinn, Mark A DirectSell2062026221.583,144696,6472,585,836Form
29Bahai, AhmadSr. Vice PresidentDirectSell2062026223.463,000670,3879,494,462Form
30Kirk, Ronald DirectSell11252025162.339,9901,621,6882,424,740Form
31Witzsche, ChristineSr. Vice PresidentDirectSell11142025164.311,000164,3063,421,019Form

Investor Activity (13F)

Updated Oct 30, 2026
13F holdings as of Mar 31, 2026 (Q1 2026)

Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.

Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Indivisible Partners$250.5 Mil22.2%482ADD +23.0%13F
Caledonia Investments PLC$100.5 Mil11.7%15Hold13F
Camrose Capital Investment Partners LLP$87.6 Mil11.5%10ADD +32.5%13F
ADAPT Investment Managers SA$28.8 Mil9.8%34New13F
Slate Path Capital LP$518.4 Mil7.7%44New13F
Metropolis Capital Ltd$226.8 Mil7.7%16TRIM -43.9%13F
Manchester Global Management (UK) Ltd$40.8 Mil5.4%23New13F
RIT Capital Partners PLC$15.8 Mil4.2%12TRIM -58.8%13F
Longview Partners (Guernsey) LTD$294.8 Mil4.2%25New13F
Rothschild & Co Wealth Management UK Ltd$260.2 Mil4.0%25Hold13F
Fundsmith LLP$509.3 Mil4.0%34Hold13F
Fundsmith Investment Services LTD.$168.3 Mil3.8%24Hold13F
Local Pensions Partnership Investment Ltd$176.3 Mil3.8%32TRIM -9.2%13F
Nishkama Capital, LLC$25.0 Mil3.6%39ADD +128.4%13F
Cambridge Financial Group, Inc.$8.6 Mil3.2%33Hold13F
Eldred Rock Partners, LLC$12.0 Mil3.1%31Hold13F
D1 Capital Partners L.P.$340.3 Mil3.0%44ADD +260.8%13F
Brilliance Asset Management LTD$8.9 Mil2.6%16ADD +27.1%13F
Hamlin Capital Management, LLC$108.6 Mil2.6%30ADD +26.9%13F
LHM, Inc.$5.9 Mil2.3%22ADD +20.9%13F
Iyo Bank, Ltd.$6.2 Mil2.2%35Hold13F
Weitz Investment Management, Inc.$31.1 Mil2.2%49Hold13F
Kinsale Capital Group, Inc.$12.0 Mil1.9%41ADD +5.2%13F
Walter Public Investments Inc.$7.1 Mil1.7%48ADD +2260.3%13F
Haverford Financial Services, Inc.$5.3 Mil1.6%46TRIM -7.7%13F
Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Slate Path Capital LP$518.4 Mil7.7%44New13F
Longview Partners (Guernsey) LTD$294.8 Mil4.2%25New13F
Manchester Global Management (UK) Ltd$40.8 Mil5.4%23New13F
ADAPT Investment Managers SA$28.8 Mil9.8%34New13F
Woodbridge Co Ltd$14.0 Mil0.1%46New13F
WS Management LLLP$7.8 Mil1.0%35New13F
Walter Public Investments Inc.$7.1 Mil1.7%48ADD +2260.3%13F
D1 Capital Partners L.P.$340.3 Mil3.0%44ADD +260.8%13F
Nishkama Capital, LLC$25.0 Mil3.6%39ADD +128.4%13F
Camrose Capital Investment Partners LLP$87.6 Mil11.5%10ADD +32.5%13F
Brilliance Asset Management LTD$8.9 Mil2.6%16ADD +27.1%13F
Hamlin Capital Management, LLC$108.6 Mil2.6%30ADD +26.9%13F
Indivisible Partners$250.5 Mil22.2%482ADD +23.0%13F
LHM, Inc.$5.9 Mil2.3%22ADD +20.9%13F
Kinsale Capital Group, Inc.$12.0 Mil1.9%41ADD +5.2%13F
Active ManagerValue% of PortfolioTotal PositionsQoQAs OfFiling
Vantage Wealth$18.6 Mil4.0%30ExitedDec 31, 202513F
Benchstone Capital Management LP$16.4 Mil1.8%43ExitedDec 31, 202513F
Regents Gate Capital LLP$9.4 Mil3.0%37ExitedDec 31, 202513F
Columbus Hill Capital Management, L.P.$6.4 Mil0.9%25ExitedDec 31, 202513F
Grunden Financial Advisory, Inc.$6.0 Mil2.3%35ExitedDec 31, 202513F
RIT Capital Partners PLC$15.8 Mil4.2%12TRIM -58.8%Mar 31, 202613F
Metropolis Capital Ltd$226.8 Mil7.7%16TRIM -43.9%Mar 31, 202613F
Local Pensions Partnership Investment Ltd$176.3 Mil3.8%32TRIM -9.2%Mar 31, 202613F
Troy Asset Management Ltd$32.2 Mil1.0%30TRIM -8.2%Mar 31, 202613F
Haverford Financial Services, Inc.$5.3 Mil1.6%46TRIM -7.7%Mar 31, 202613F
Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Slate Path Capital LP$518.4 Mil7.7%44New13F
Fundsmith LLP$509.3 Mil4.0%34Hold13F
D1 Capital Partners L.P.$340.3 Mil3.0%44ADD +260.8%13F
Longview Partners (Guernsey) LTD$294.8 Mil4.2%25New13F
Rothschild & Co Wealth Management UK Ltd$260.2 Mil4.0%25Hold13F
Indivisible Partners$250.5 Mil22.2%482ADD +23.0%13F
Metropolis Capital Ltd$226.8 Mil7.7%16TRIM -43.9%13F
Local Pensions Partnership Investment Ltd$176.3 Mil3.8%32TRIM -9.2%13F
Fundsmith Investment Services LTD.$168.3 Mil3.8%24Hold13F
Hamlin Capital Management, LLC$108.6 Mil2.6%30ADD +26.9%13F
Caledonia Investments PLC$100.5 Mil11.7%15Hold13F
Camrose Capital Investment Partners LLP$87.6 Mil11.5%10ADD +32.5%13F
Manchester Global Management (UK) Ltd$40.8 Mil5.4%23New13F
Troy Asset Management Ltd$32.2 Mil1.0%30TRIM -8.2%13F
Weitz Investment Management, Inc.$31.1 Mil2.2%49Hold13F
ADAPT Investment Managers SA$28.8 Mil9.8%34New13F
Nishkama Capital, LLC$25.0 Mil3.6%39ADD +128.4%13F
RIT Capital Partners PLC$15.8 Mil4.2%12TRIM -58.8%13F
Woodbridge Co Ltd$14.0 Mil0.1%46New13F
Kinsale Capital Group, Inc.$12.0 Mil1.9%41ADD +5.2%13F
Eldred Rock Partners, LLC$12.0 Mil3.1%31Hold13F
Brilliance Asset Management LTD$8.9 Mil2.6%16ADD +27.1%13F
Cambridge Financial Group, Inc.$8.6 Mil3.2%33Hold13F
WS Management LLLP$7.8 Mil1.0%35New13F
Walter Public Investments Inc.$7.1 Mil1.7%48ADD +2260.3%13F

TXN Trade Sentinel


Stock Conviction

High Conviction

CONVICTION RATIONALE

Conviction is high as Texas Instruments is capitalizing on a strong cyclical recovery. Revenue growth is accelerating, reaching 27.7% in the latest quarter, which drives significant margin expansion due to the company's manufacturing scale. Management's flawless execution and an 'above seasonal' forecast for the fourth quarter suggest this momentum is sustainable in the near term.

STOCK ARCHETYPE
Component Manufacturer

(Number of chips sold) x (Average Selling Price) Factory utilization and product mix. As a company that owns most of its manufacturing capacity, a significant portion of operating costs are fixed. Higher factory loadings spread these fixed costs over more output, increasing profit margins.

Looking for high-conviction positions with a better risk/reward profile? See what's currently in the Trefis High Quality Portfolio.
INVESTMENT THESIS
Can manufacturing scale convert this cyclical upswing into superior free cash flow?

Evidence suggests yes, as accelerating demand drives powerful operating leverage and margin expansion.

Mechanism: Accelerating revenue, up 27.7% year-over-year, on a high fixed-cost base expands margins. This, plus returning pricing power in analog chips, drives free cash flow to fund shareholder returns.
Supporting Evidence:
  • Latest-quarter revenue growth accelerated to 27.7% year-over-year.
  • Gross margin expanded by 6.8 percentage points from a year earlier.
  • Q4 2026 revenue guidance was raised by 2.5%.
  • Inventory declined YoY, indicating strong sell-through.
  • A positive book-to-bill ratio was achieved in Q3 2026.
PRIMARY RISK
Cyclical Peak and Channel Stuffing

The current upswing may be a temporary cyclical peak, with signs of weakness potentially masked by aggressive sales. Accounts receivable grew 80.4% year-over-year, far outpacing revenue.

Mechanism: A negative book-to-bill ratio or a future guidance cut would confirm demand is rolling over.
Supporting Evidence:
  • Accounts receivable grew 80.4% YoY in the latest quarter.
  • The semiconductor market is inherently cyclical, with rapid demand shifts.
  • Products shipped into China represented about 50% of revenue in 2025.
  • The stock has returned 87.0% over the last twelve months.
Key KPI Watchlist
KPI Status Rationale
Revenue Growth by End Market27.7% year-over-year growth for the quarter ended 9/30/2026 - AcceleratingThe year-over-year revenue growth trajectory shows clear acceleration. This is driven by what management described on its October 21st call as broad demand, with particularly strong growth in key end markets: Industrial grew over 40% YoY, Automotive grew mid-teens YoY, and Data Center was up about 95% YoY.
Inventory Days194 (Q3 2026)Measures the average number of days the company holds its inventory before selling it. Management's strategy is to build broad-based products ahead of demand to maintain high customer service levels. The level varies with market conditions.
Free cash flow per share growthnot stated in available sources (not stated in available sources)Management states this is the ultimate measure to generate value and the company's primary objective. It reflects the company's ability to generate cash for owners after investing in the business.
Inventory-versus-revenue growth divergence-31 percentage points (Q3 2026)Compares the year-over-year growth rate of inventory to the growth rate of revenue. A large negative divergence, as seen in the latest quarter (inventory grew -3.3% while revenue grew 27.7%), indicates strong demand is drawing down inventory levels.
Core Investment Debate

Operating Leverage vs. Cyclical Peak

BULL VIEW

Bulls believe accelerating revenue (27.7% YoY) and disciplined execution are driving a highly profitable upcycle, with strong forward guidance suggesting more room to run.

CORE TENSION

Can accelerating revenue (27.7% YoY) and strong guidance offset fears of a cyclical peak signaled by accounts receivable growth (80.4% YoY)?


PREVAILING SENTIMENT
BULLISH

The latest evidence favors the bulls. A positive book-to-bill ratio and an 'above seasonal' Q4 forecast provide tangible, forward-looking support for continued demand strength.

BEAR VIEW

Bears see the 80.4% YoY growth in accounts receivable as a red flag for a cyclical peak, suggesting current strength is unsustainable and pulled-forward.

Next 6 months: Risks and Catalysts
Timeline Event & Metric To Watch
Nov. 10, 2026
Quarterly Dividend Payment
Watch: Company to pay a quarterly cash dividend of $1.52 per share of common stock.
November 9, 2026
New Debt Issuance
Watch: Company to issue four series of senior unsecured notes for an aggregate principal amount of $2.0 billion.
12/9/2026
Peer Results Signal Slowdown
Watch: Broadcom's revenue guidance and commentary on data center and industrial demand trends.
1/25/2027
Next Earnings Report
Watch: Company is scheduled to report its next quarterly earnings for the period ending 12/31/2026.
2/1/2027
Automotive Recovery Falters
Watch: Automotive segment results and guidance from peers NXP (reports 2/1/2027), ON Semi, and Analog Devices.
February 2027
Key Peer Earnings
Watch: Peers NXP (NXPI), Microchip (MCHP), ON Semi (ON), and Analog Devices (ADI) report earnings, providing auto/industrial updates.
No set date
Geopolitical Shock Affecting China
Watch: New U.S. or China trade tariffs, export controls, or other administrative measures targeting the semiconductor industry.
WITHIN_SIX_MONTHS
Acquisition Integration Challenges
Watch: Updates on regulatory approvals, closing timeline, and management commentary on synergy realization and integration plans.
Key Events in Last 6 Months
Date Event Stock Impact
2026-10-26
New Debt Priced for Acquisition
Details: On October 26, 2026, the company announced the pricing of $2.0 billion in senior unsecured notes to help finance the acquisition of Silicon Laboratories Inc.
+8.5%
$284.69 -> $308.91
2026-10-21
Strong Q3 Results and Guidance
Details: The company reported Q3 revenue of $6.06 billion, up 27.7% year-over-year, and guided Q4 revenue higher by 2.5% and Q4 EPS higher by 9.2%.
+0.6%
$277.78 -> $279.50
2026-09-17
Quarterly Dividend Increased
Details: On September 17, 2026, the company announced a 7% increase in its quarterly cash dividend to $1.52 per share, marking 23 consecutive years of increases.
+2.3%
$260.67 -> $266.64
2026-07-22
Q2 Earnings Met With Negative Reaction
Details: The company reported Q2 revenue of $5.5 billion, up 23% year-over-year. The two-day stock reaction around the July 22, 2026 earnings call was -2.0%.
-2.2%
$289.82 -> $283.54
2026-06-02
CFO Transition Announced
Details: On June 2, 2026, the company announced that Julie Knecht would become the new CFO effective August 1, 2026, succeeding Rafael Lizardi who planned to retire.
+5.2%
$291.71 -> $307.02
2026-04-28
New Graphing Calculator Launched
Details: On April 28, 2026, the company announced the launch of the TI-84 Evo Graphing Calculator, described as the most advanced TI-84 ever built.
-0.1%
$266.77 -> $266.49
2026-04-22
Strong Q1 Earnings Reaction
Details: The stock had a two-day reaction of 21.0% around the earnings call dated April 22, 2026, signaling a significant positive market surprise.
+21.1%
$230.79 -> $279.37
Risk Management
Position Sizing

4% - 6%

NORMAL POSITION

Sizing is volatility-based: TXN trades at roughly 32% annualized realized (three-month) volatility versus about 11% for the S&P 500 (3.0x the market). A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.

Diversification Alternatives
ADI - Analog Devices
Higher-Performance Exposure

Analog Devices exhibits higher gross margins, suggesting a richer product mix and leadership in the highest-performance, highest-value niches of the analog market.

Core Thesis: ADI offers exposure to the most demanding applications in AI, data center, and industrial markets, where performance is the primary consideration.
NXPI - NXP Semiconductors
Automotive Focus

NXP Semiconductors has a strong, established position in the automotive market, which is a key secular growth driver for the entire semiconductor industry.

Core Thesis: NXPI provides a more concentrated bet on the increasing semiconductor content within vehicles, from infotainment to advanced driver-assistance systems.
How Is The Market Pricing TXN?

A disciplined, high-margin manufacturer of foundational analog and embedded chips, leveraging its scale and cost advantages to generate and return significant free cash flow to shareholders.

Texas Instruments operates with a long-term owner's mindset, focused on maximizing free cash flow per share. Its strategy is built on four competitive advantages: in-house manufacturing for cost control, a vast product portfolio, direct market channels, and diverse, long-lived products. The company is currently benefiting from a strong cyclical recovery and secular growth trends in industrial, automotive, and data center markets, which is driving strong revenue growth and profitability.

What will confirm the thesis

Sustained or accelerating revenue growth in the industrial, automotive, and data center end markets; evidence of continued pricing power in 2027 negotiations; and margin expansion from higher factory utilization.

What will damage the thesis

A sharp cyclical downturn in the semiconductor market leading to a rapid decrease in demand; significant erosion of its manufacturing cost advantage; or geopolitical tensions, particularly with China, disrupting sales or supply chains.

Noise: Real but irrelevant to thesis

Short-term stock price fluctuations not tied to fundamental changes in demand, supply, or competitive positioning.

Repricing Catalyst

The ongoing strong cyclical recovery combined with secular growth in key end markets, which has led to accelerating revenue growth, expanding margins, and positive guidance revisions.

What TXN Makes & Who Pays
TTM figures based on the twelve months through fiscal Q2 2026
Analog
$15.6B TTM (80% of Total) · 42% Margin
What It Is

Sells Analog semiconductors, including Power and Signal Chain products, to electronics designers and manufacturers in markets like industrial, automotive, data center, personal electronics, and communications equipment. Power products manage electrical energy in systems, while Signal Chain products sense, condition, and measure real-world signals.

Who Pays & How

Electronics manufacturers pay for these chips to provide power management and interface capabilities in their products. They choose TI for its broad portfolio and ability to provide critical components for managing power and converting real-world signals into digital data for processing.

Per-unit sales.
Competition
Analog Devices (ADI), NXP Semiconductors (NXPI), Broadcom (AVGO)
Competitors possess financial, technical, and management resources to develop and market competing products. Some peers like Broadcom are significantly larger by revenue, while others like ADI have higher gross margins.
TI's moat is built on four stated competitive advantages: a strong foundation of manufacturing and technology (particularly its cost-advantaged 300mm wafer production), a broad portfolio of over 80,000 products, the reach of its market channels (over 80% direct sales), and the diversity and longevity of its products and customer positions.
Embedded Processing
$2.9B TTM (15% of Total) · 16% Margin
What It Is

Sells Embedded Processing products, which are the digital "brains" of electronic equipment, to customers in markets like industrial and automotive. The portfolio includes microcontrollers, processors, and wireless connectivity products designed to handle specific tasks.

Who Pays & How

Electronics manufacturers pay for these chips to provide processing and control capabilities in their equipment. Customers often invest their own R&D to develop software for TI's products, which tends to increase the length of the customer relationship as they prefer to reuse software across product generations.

Per-unit sales.
Competition
NXP Semiconductors (NXPI), Microchip Technology (MCHP)
The market is highly fragmented. Competitors include both broad-based suppliers and niche specialists, as well as emerging companies, particularly in Asia.
The primary moat is the customer's investment in software development for TI's products, which creates stickiness. This is augmented by the company's broader competitive advantages in manufacturing and market reach.
Other
$938M TTM (5% of Total) · 29% Margin
What It Is

This segment includes revenue from DLP® products (used for projecting high-definition images), calculators, and certain custom semiconductors known as application-specific integrated circuits (ASICs).

Who Pays & How

A variety of customers, including those in consumer electronics and education, pay for these products.

Per-unit sales.
Competition
TXN Evolution: Price Return by Era
2013 - 2025 · Shift to Industrial & Automotive
+667%
The company has strategically emphasized the industrial and automotive markets, which it believes represent the best long-term growth opportunities. This focus has resulted in the combined revenue share of industrial, automotive, and the newly broken-out data center market growing from about 43% in 2013 to about 75% in 2025.
· Focus on Analog & Embedded
Over many years, the company has made a series of strategic decisions to focus its business model on analog and embedded processing products. This has allowed it to build out its four key competitive advantages and become a company capable of generating and returning significant amounts of cash.
2021 - 2026 · Elevated Capital Expenditures Cycle
+124%
The company has been in a six-year period of elevated capital expenditures to build out its 300mm manufacturing capacity, particularly in Texas and Utah. This investment is intended to strengthen its manufacturing cost advantage and provide geopolitically dependable capacity to meet future demand.
Market Appears To Be Aligned With Core Thesis
Price structure is strongly bullish. The regime, trend, and proximity to highs all point towards intact institutional trend. Relative to SPY: Decisively outperforming and improving. Potential evidence of active institutional rotation. Volume and momentum are strongly confirming. The institutional accumulation is evident and momentum is accelerating. Earnings history is supportive. The reaction and drift are both positive, and the market is accepting the narrative.
① Structure
+4
Structural pillar score (-4 to +4). Driven by trend regime, SMA cross events, proximity to 52W high, and relative strength vs SPY.
② Volume / Momentum
+3
Volume/Momentum pillar score (-4 to +4). Driven by institutional footprint score, OBV divergence, and momentum character.
③ Catalyst
+2
Catalyst pillar score (-4 to +4). Driven by earnings day reaction, 20D post-earnings drift, and post-earnings volume character.
Combined Score
9 / 12
1 Price Structure & Trend Trending Up · - ▾
2 Momentum Accelerating ▾
3 Relative Strength vs. SPY Strong Outperformance ▾
4 Institutional Footprint & Volume Mild Accumulation ▾
5 Volatility Normal ▾
6 Key Price Levels Range · Vol Falling ▾
7 Earnings Reaction History Emerging Resilience ▾
8 How the Verdict Is Derived Three Pillars ▾
Core Cache Last Updated: 10/29/2026