⚡What does Texas Instruments do, in 30 seconds?
Texas Instruments makes chips that sense the real world, manage power and control machines, for almost every type of electronic equipment 1 4 1. It sold $17.7bn ✓ in FY2025, and analog chips made up 79% ✓ of that. It makes most of its chips in its own factories 21.
📱What does Texas Instruments sell?
Texas Instruments has two main business lines, and Analog is by far the bigger one. A small Other group holds projector chips, calculators and some custom chips 5. Here is what each one is and who buys it.
Analog
Chips that turn real-world signals such as sound, heat or light into data, and chips that manage power 1. In FY2025, Analog brought in $14.0bn ✓. It has two lines: Power, such as battery management and voltage regulators, and Signal Chain, such as amplifiers and data converters 1.
👥 TI's biggest markets overall are factory equipment, cars, personal electronics and data center gear 3.
Embedded Processing
Microcontrollers, processors, wireless connectivity and radar chips 4. A microcontroller is a tiny computer on a chip that runs one job inside a machine. This line brought in $2.7bn ✓ in FY2025.
👥 Especially industrial and car makers 4. Many write their own software for TI's chips and reuse it in later products 4.
How the mix has shifted
💸How does Texas Instruments make money?
Follow the money from left to rightfrom top to bottom: what customers pay for, what it costs to make, and what is left as profit.
Texas Instruments sold $17.7bn ✓ of chips and other products in FY2025. Making them cost $7.6bn ✓. What is left is gross profit, the money kept after paying for what was sold. That came to $10.1bn ✓.
Next come the costs of running the company. Research and development took $2.1bn ✓, and sales, marketing and admin took $1.9bn ✓. Other operating costs took $0.1bn ✓. That left operating profit, the profit from the main business, of $6.0bn ✓. Interest and other items came to -$0.3bn ✓, and tax took $0.7bn ✓. Net income was $5.0bn ✓. Put simply, out of every hundred dollars of sales, Texas Instruments kept about $28 ✓ as profit.
Out of every $100 customers paid in FY2025…
⏱️ Texas Instruments by the clock
Spread the FY2025 totals evenly over its 365 days and you get this. Source: TEXAS INSTRUMENTS INC 10-K [6].
📈How is Texas Instruments doing?
Texas Instruments is growing fast again after a two-year slump, though its ten-year growth has been slow. From FY2015 to FY2025, sales grew 3.1% ✓ a year on average. Sales rose in 7 ✓ of those 10 ✓ years. They peaked at $20.0bn ✓ in FY2022. Growth was then -12.5% ✓ in FY2023 and -10.7% ✓ in FY2024, before sales rose 13.0% ✓ in FY2025. Operating margin was 34.1% ✓ in FY2025, close to 33.2% ✓ in FY2015. Meanwhile, TI spent heavily on new factories. Capital spending was $4.6bn ✓ in FY2025, against $0.6bn ✓ in FY2015.
The latest four quarters, to 30 September 2026, look much stronger. Sales reached $20.8bn ✓, up 20.3% ✓ on the four quarters before. Third-quarter revenue rose 28% on a year earlier, with growth in industrial, automotive and data center 25. Operating margin climbed to 40.8% ✓. Capital spending eased to $2.6bn ✓, and free cash flow rose to $7.3bn ✓.
📝 The report card
Texas Instruments earns top marks for profit, a fair mark for cash, a weak mark for steadiness, and the lowest marks for growth and its balance sheet. Every company is graded on the same fixed scale, so an A means the same thing on every page. The strip shows where Texas Instruments (orange) and its 4 peers land; further right is better.
Growth
Texas Instruments' sales growth was -4.1% ✓ a year over its last three fiscal years, which earns an F ✓. Sales peaked at $20.0bn ✓ in FY2022, against $17.7bn ✓ in FY2025. Microchip shrank faster, at -17.6% ✓ a year, while Broadcom grew 24.4% ✓ a year, good for an A ✓.
Why this measure? (higher is better)
Growing sales is the engine of a business. Mature giants rarely grow fast, so 5% a year already earns a C.
Profitability
Over the last three years combined, Texas Instruments kept 37.0% ✓ of sales as operating profit, which earns an A ✓. That ranks 1 ✓ of 5 ✓ in its group. Broadcom is close behind at 36.5% ✓, and the peer median is 26.7% ✓.
Why this measure? (higher is better)
Operating margin is the share of each sales dollar left after running the business. Software and platforms often clear 30%; hardware makers usually sit below 10%.
Cash generation
Over the last three years combined, Texas Instruments turned only 10.7% ✓ of sales into free cash flow, which earns a C ✓. Building factories used up most of its cash. In FY2023, capital spending of $5.1bn ✓ took most of the $6.4bn ✓ that operations brought in. TI ranks 5 ✓ of 5 ✓, and the peer median is 29.4% ✓.
Why this measure? (higher is better)
Free cash flow is the cash left after paying for factories, data centres and equipment. It funds dividends, buybacks and new bets.
Balance sheet
Texas Instruments' cash and investments minus its borrowings (leases not counted) came to -51.8% ✓ of a year's sales, which earns an F ✓. Net cash fell from -$0.9bn ✓ in FY2015 to -$9.2bn ✓ in FY2025, then improved to -$5.4bn ✓ by 30 September 2026. Even so, TI ranks 2 ✓ of 5 ✓, as the peer median is -83.0% ✓.
Why this measure? (higher is better)
More cash than debt gives a company room to ride out bad years. Some debt is normal; a lot of it makes a company fragile.
Steadiness
Texas Instruments' yearly growth swings with a standard deviation of 12.3% ✓, which earns a D ✓. Big moves such as 26.9% ✓ growth in FY2021 and -12.5% ✓ in FY2023 add to that. Even so, it ranks 1 ✓ of 5 ✓, as every peer swings more, such as Analog Devices at 27.5% ✓.
Why this measure? (lower is better)
Steady growers are easier to plan around. Big swings mean sales depend on product cycles, the economy or one-off events.
🧑🏫 How the grades work
- Same scale for everyone. Each measure has fixed cut-offs (shown under each strip). Clear the A line and you get an A, whatever your peers do.
- Three years together. Profitability and cash generation add up the last three fiscal years before dividing, so one unusual year counts for less than it would on its own (a year much bigger than the others still weighs most).
- Peers for context. The rank shows how Texas Instruments compares with the group. Companies within 0.1 percentage point share a rank.
- Same source. Every company's figures come from its own latest annual report (10-K), so fiscal years end in different months.
- Judgement, openly stated. The cut-offs are QuantVantage.ai's view of what good looks like for a large, established company. They are not a forecast or a recommendation.
11 years at a glance
Where the cash goes
From FY2015 to FY2025, Texas Instruments paid out more cash than its free cash flow. It spent $61.6bn ✓ on dividends and buybacks, against $47.6bn ✓ of free cash flow. In FY2025, payouts equalled 249% ✓ of free cash flow, and most of that was dividends of $5.0bn ✓. Over the same years, net cash fell from -$0.9bn ✓ to -$9.2bn ✓.
🧮Ratios 101: what are Texas Instruments' key financial ratios?
Ratios shrink Texas Instruments' numbers into easy comparisons, and several show the cost of its big factory build-out. A ratio divides one number by another so companies of any size can be compared. Each card shows the formula with Texas Instruments' real FY2025 numbers, the peer median and the trend.
💰 Profitability: how much of each sale is kept?
Gross margin
What is left from each sale after paying to make the product or deliver the service.
👉 At 57.0% ✓, TI is a little below its 58.3% ✓ of FY2015 and the 59.6% ✓ peer median.
📏 Rule of thumb: Above 40% usually signals pricing power or a big software or services mix.
Operating margin
What is left after also paying for research, marketing and running the company.
👉 TI's 34.1% ✓ beats the 25.7% ✓ peer median and its own 33.2% ✓ of FY2015.
📏 Rule of thumb: Above 20% is strong for a large company.
Net margin
The bottom line: profit after interest and taxes, per dollar of sales.
👉 TI keeps 28.3% ✓ of sales as final profit, up from 23.0% ✓ in FY2015 and well above the 18.5% ✓ peer median.
📏 Rule of thumb: Above 15% is strong; one-off tax items can move it in a single year.
Return on equity (ROE)
Profit earned for each dollar that shareholders have left in the company.
👉 ROE of 30.7% ✓ is more than double the 13.4% ✓ peer median and close to its 30.0% ✓ in FY2015.
📏 Rule of thumb: Around 15% or more is good, but buybacks shrink equity and can make ROE look huge.
⚙️ Efficiency: how hard do the assets work?
Return on assets (ROA)
Profit earned from everything the company owns, however it was paid for.
👉 ROA of 14.5% ✓ is down from 18.4% ✓ in FY2015, but still more than double the 6.2% ✓ peer median.
📏 Rule of thumb: Above 10% is strong; banks and factories usually earn less.
Asset turnover
Dollars of sales squeezed out of each dollar of assets.
👉 TI's sales are 0.5x ✓ the value of everything it owns, down from 0.8x ✓ in FY2015 and just above the 0.4x ✓ peer median.
📏 Rule of thumb: Retailers often top 2x; asset-heavy businesses can sit below 0.5x.
Inventory days
How many days of products sit in warehouses before they are sold.
👉 TI holds 231 ✓ days of stock, about double the 114 ✓ days of FY2015 and above the 156 ✓ day peer median.
📏 Rule of thumb: Fewer days means less cash tied up and less risk of products going stale.
🛟 Safety: could it survive a bad year?
Current ratio
Can short-term assets (cash, money owed by customers, stock) pay the bills due within a year?
👉 At 4.4x ✓, TI has more than four dollars of short-term assets for each dollar of bills due within a year, about double the 2.1x ✓ peer median.
📏 Rule of thumb: Above 1.0x is the classic comfort line, but cash-rich giants can run below it on purpose.
Debt to equity
How much the company has borrowed for each dollar shareholders have in it.
👉 TI's 0.9x ✓, up from 0.4x ✓ in FY2015 and a little above the 0.8x ✓ peer median, reflects $14.0bn ✓ of debt.
📏 Rule of thumb: Below 1.0x is conservative. Like ROE, it can rise when buybacks shrink equity, even if debt has not changed.
💵 Cash and owners: where does the money end up?
Cash conversion
Does reported profit turn into real cash? Free cash flow is operating cash minus capital spending.
👉 TI turned profit into free cash at just 0.5x ✓, against 1.3x ✓ in FY2015 and a 1.5x ✓ peer median. Capital spending of $4.6bn ✓ in FY2025 ate into the cash.
📏 Rule of thumb: Near or above 1.0x means profits are backed by cash.
R&D intensity
How much of each sales dollar goes into inventing future products.
👉 TI spends 11.8% ✓ of sales on R&D, up from 9.7% ✓ in FY2015 but below the 18.2% ✓ peer median.
📏 Rule of thumb: Tech companies often spend 10% to 20%; more is not always better if it does not pay off.
Stock pay
Pay given to staff in shares instead of cash. It is a real cost to owners because it adds shares.
👉 Stock pay is 2.4% ✓ of sales, about half the 4.6% ✓ peer median and close to 2.2% ✓ in FY2015.
📏 Rule of thumb: Under 5% of sales is modest for a tech company.
Shareholder payout
How much of the year's profit was handed back to owners.
👉 TI returned 129.5% ✓ of FY2025 profit to shareholders, below its 140.2% ✓ in FY2015 and the 137.8% ✓ peer median.
📏 Rule of thumb: Above 100% means it returned more than it earned, using cash savings or debt.
Ratios use fiscal-year-end balance sheet values. Inputs are shown rounded, so dividing them can differ from the result in the last digit. A peer median leaves out peers that do not report the inputs, or where the ratio means nothing (for example, negative shareholders' equity). Rules of thumb are general guides from QuantVantage.ai, not hard limits. No share-price ratios (like price-to-earnings) are shown on this page.
🥊Who are Texas Instruments' competitors?
Texas Instruments' closest rivals are other makers of analog and embedded chips for factories and cars, such as Analog Devices, Microchip and NXP 1313 141516 171819. Broadcom overlaps only in part, in data center and industrial chips 312.
| Company | Where they compete | Revenue | Growth/yr (3y) | Op. margin | FCF margin |
|---|---|---|---|---|---|
| Texas Instruments (TXN, FY2025) | Analog and embedded chips for industrial, car, electronics and data center makers 3 | $17.7bn | -4.1% | 34.1% | 14.7% |
| Broadcom (AVGO, FY2025) | Data center and industrial chips, a partial overlap; data center was 9% of TI's 2025 revenue 312 | $63.9bn | 24.4% | 39.9% | 42.1% |
| Analog Devices (ADI, FY2025) | Analog chips such as amplifiers, data converters and power parts for industry and cars 1313 | $11.0bn | -2.8% | 26.6% | 38.8% |
| Microchip (MCHP, FY2026) | Microcontrollers and analog chips for industrial and car products 141516 | $4.7bn | -17.6% | 10.4% | 18.5% |
| NXP (NXPI, FY2025) | Microcontrollers, processors and analog chips for cars and factories; NXP names TI as a main rival 171819 | $12.3bn | -2.4% | 24.8% | 19.7% |
Beyond these four, TI faces dozens of large and small rivals, including emerging companies in Asia 20. TI also warns that China's push to build its own chip industry could bring more competition 20.
🧭Texas Instruments SWOT: strengths, weaknesses, opportunities and threats
💪 Strengths
- TI sells to more than 100,000 customers, and about half its revenue comes from outside its 50 largest 3.
- TI makes most of its chips in its own factories 21, and says an unpackaged chip on a 300mm wafer costs about 40% less than on a 200mm one 21.
- Over the last three years combined, TI kept 37.0% ✓ of sales as operating profit, an A ✓ on our report card.
- Its catalog of more than 80,000 products reaches almost every type of electronic equipment 1.
🩹 Weaknesses
- Sales growth was -4.1% ✓ a year over the three years to FY2025.
- Because TI owns its factories, many costs stay fixed when demand drops, which can squeeze margins 20.
- Over the last three years combined, only 10.7% ✓ of sales became free cash flow, a C ✓.
- TI owed more than it held, with net cash of -$9.2bn ✓ at the end of FY2025.
🚀 Opportunities
- Buying Silicon Labs, a maker of wireless connectivity chips, would add about 1,200 products 24.
- TI expects the deal to save about $450 million a year within three years of closing 24.
- Third-quarter 2026 revenue grew 28% on a year earlier, with broad growth in industrial, automotive and data center 25.
- Capital spending is expected to fall to $2 billion to $3 billion in 2026, from $4.55 billion in 2025 22.
⚠️ Threats
- In 2025, about 50% of TI's revenue came from products shipped into China 20.
- China's policies and investment to build its own chip industry could increase competition 20.
- TI's markets are crowded, with dozens of rivals, including emerging companies in Asia 20.
- The Silicon Labs deal still needs regulatory approvals 26.
🏰Does Texas Instruments have a moat?
Why 3?
Many customers write their own software for TI's embedded chips and reuse it from one product generation to the next, which tends to keep them longer 4.
Why 1?
One more customer does not make TI's chips better for anyone else. Its markets are crowded, with dozens of large and small rivals 20.
A moat is what keeps rivals from taking a company's customers and profits. Scores are QuantVantage.ai's judgement (5 = strongest), set with the same rubric on every explainer (orange is Texas Instruments; grey dots are peers).
🔭What should you watch next?
CHIPS Act payments
TI had received $630 million of its up to $1.6 billion in CHIPS Act funding by September 30, 2026 26.
📚Learn the words
❓Frequently asked questions about Texas Instruments
How does Texas Instruments make money?
Texas Instruments makes most of its money selling analog chips. In FY2025, Analog brought in $14.0bn ✓ and Embedded Processing $2.7bn ✓. The Other group, which includes calculators and projector chips, added $1.0bn ✓.
Does Texas Instruments still make calculators?
Yes, but they are a small part of the business. Calculators were about 1% of revenue in 2025 3. They sit in the Other group with DLP projector chips and some custom chips 5.
Is Texas Instruments' revenue growing again?
Yes, it is growing again. Sales rose 13.0% ✓ in FY2025 and 20.3% ✓ in the four quarters to September 2026. That followed two years of falling sales after a peak of $20.0bn ✓ in FY2022.
Why does Texas Instruments build its own factories?
TI says an unpackaged chip made on its bigger 300mm wafers costs about 40% less than one on 200mm wafers, which is why it has invested in 300mm factories 21. It spent $4.55 billion on capital projects in 2025 and says a six-year period of heavy spending is nearly over 22.
Why does TI report more free cash flow than this page?
TI adds CHIPS Act incentives to its own free cash flow figure 22. On that basis, it reported $8.4 billion for the 12 months to September 30, 2026 25. This page counts only cash from operations minus capital spending, which gives $7.3bn ✓.
Who are Texas Instruments' biggest competitors?
Analog Devices sells similar analog chips to industrial and car makers 1313. Microchip and NXP compete in microcontrollers and analog chips for cars and factories 141516 171819. TI says its markets also hold dozens of other rivals, including emerging companies in Asia 20.
Who runs Texas Instruments?
Haviv Ilan has been president and CEO since 2023, and became chairman in 2026 28. He followed Rich Templeton, who retired as chairman at the end of 2025 after 45 years at TI 29. Julie Knecht became chief financial officer on August 1, 2026 30.
Does Texas Instruments pay a dividend?
Yes, TI pays a dividend every quarter. In FY2025, it paid $5.0bn ✓ in dividends. In September 2026 it raised its quarterly dividend 7%, its 23rd yearly increase in a row 31.
🎮Play: higher or lower, then test yourself
Figures come from each company's latest annual report (10-K); fiscal years end in different months. Sources: [6] [8] [9] [7] [10].
🧠 Test yourself
5 quick questions. Score: 0 / 5
1. Which famous invention did a Texas Instruments engineer show off in 1958?
2. About how much of TI's FY2025 sales came from analog chips?
3. Where did TI chips become the first integrated circuits to orbit Earth?
4. Why has TI moved to bigger 300mm wafers?
5. Which of these does TI's Other group sell?
🔎Sources and method
Every figure comes from a source listed here or is calculated from those sources (marked ✓). Company financials are taken from SEC filings (10-K and 10-Q) as tagged in XBRL. Peer grades rank the same measures across the company and its peers. This page contains no share-price data and no valuation.
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 product information and Analog segment (Power, Signal Chain) (accessed 2026-10-29)
- Texas Instruments (TXN) Form 10-K for fiscal year 2025, filed 2026-02-06 — revenue and cost of sales by product, segment and geography (accessed 2026-10-28)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 markets table, customers, sales and distribution (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 Embedded Processing segment (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 Other (DLP products, calculators, custom chips) (accessed 2026-10-29)
- SEC EDGAR companyfacts: Texas Instruments (TXN) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: MICROCHIP TECHNOLOGY INC (MCHP) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: Broadcom Inc. (AVGO) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: ANALOG DEVICES INC (ADI) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: NXP Semiconductors N.V. (NXPI) — annual 10-K facts (accessed 2026-10-28)
- SEC EDGAR companyfacts: Texas Instruments (TXN) — balance sheet at 2026-09-30 (accessed 2026-10-28)
- Broadcom Form 10-K for fiscal year 2025 — Item 1 semiconductor solutions end markets (accessed 2026-10-29)
- Analog Devices Form 10-K for fiscal year 2025 — Item 1 products (data converters, power management, amplifiers) and revenue by end market (accessed 2026-10-29)
- Microchip 10-K FY2026 (Item 1, Business) — Company overview, product lines and development tools (accessed 2026-10-29)
- Microchip 10-K FY2026 (Item 7, net sales by product line) — Product line shares and average selling price commentary (accessed 2026-10-29)
- Texas Instruments 10-K for 2025 (Business) — TI segments, analog share of revenue, markets (accessed 2026-10-29)
- NXP 10-K FY2025 (filed 2026-02-19) — Patents and named competitors (accessed 2026-10-29)
- NXP 10-K FY2025 (filed 2026-02-19) — Revenue by end market, channel and region, 2025 vs 2024 (accessed 2026-10-29)
- Texas Instruments 10-K FY2025 (filed 2026-02-06) — TI markets and their share of 2025 revenue; product segments (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 competitive landscape and market characteristics; Item 1A risk factors (China exposure, competition, distributors, margins) (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 manufacturing (own fabs, 300mm wafers) (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 7 liquidity: capital expenditures, CHIPS Act incentives, free cash flow definition (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 intellectual property (accessed 2026-10-29)
- Texas Instruments and Silicon Labs joint news release, February 4, 2026 (Form 8-K Exhibit 99.1) — Agreement to acquire Silicon Labs: products, synergies, expected closing (accessed 2026-10-29)
- Texas Instruments news release, October 21, 2026 (Form 8-K Exhibit 99): third quarter 2026 results — Q3 2026 revenue, trailing 12-month cash flow and cash returned, Q4 2026 outlook (accessed 2026-10-29)
- Texas Instruments Form 10-Q for the quarter ended September 30, 2026 — Silicon Labs acquisition status, delayed draw term loan, CHIPS Act direct funding received (accessed 2026-10-29)
- SEC EDGAR companyfacts: Texas Instruments (TXN) — quarterly 10-Q/10-K facts (accessed 2026-10-28)
- Texas Instruments proxy statement (DEF 14A), March 4, 2026 — Director biography: Haviv Ilan (accessed 2026-10-29)
- Texas Instruments news release, October 16, 2025 (Form 8-K Exhibit 99): chairman succession — Haviv Ilan named chairman; Rich Templeton retires (accessed 2026-10-29)
- Texas Instruments Form 8-K, June 2, 2026 (Item 5.02) — Chief financial officer succession (accessed 2026-10-29)
- Texas Instruments news release, September 17, 2026 (Form 8-K Exhibit 99): dividend increase — Quarterly dividend increase and years of increases (accessed 2026-10-29)
- Texas Instruments company blog: From idea to invention, the origin story of the tiny chip that changed the world — Jack Kilby's first working integrated circuit, September 12, 1958 (accessed 2026-10-29)
- Texas Instruments article: The best is yet to come, the legacy of the integrated circuit — First integrated circuits in orbit (Explorer 18, 1963) (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 overview: founding, incorporation, headquarters, countries, segments; cover: fiscal year end (accessed 2026-10-29)
- Texas Instruments Form 10-K for fiscal year 2025 — Item 1 human capital: employees (accessed 2026-10-29)