Is the business good?
How good a business is TXN?
Texas Instruments earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
23%
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 37%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2026
- Cash conversion
- 0.89×
Cash conversion · 0.30× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.88%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 41% |
| FY2021 | 49% |
| FY2022 | 51% |
| FY2023 | 42% |
| FY2024 | 35% |
| FY2025 | 34% |
Details›
- Gross margin12 months to Q2 2026
- 58%
- Operating margin12 months to Q2 2026
- 37%
- Net margin12 months to Q2 2026
- 31%
- Free cash flow margin
- 28%
- R&D as % of revenue
- 11%
- Revenue, trailing twelve months
- $19.5B
- Free cash flow, trailing twelve months
- $5.36B
- Net income, trailing twelve months
- $6.05B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductors
Ranks #21 of 48 by Smart Score