Texas Instruments (TXN)
Forward P/E is 26.81x against a peer median of 26.26x, a ratio of 1.02x — squarely inside the 0.90–1.15 fair range — with a trailing P/E of 39.67x and a price/sales ratio of 13.59x. The small premium over the median is paid for by delivered growth: latest-quarter revenue growth was +27.7% year over year (PRIMARY/EDGAR), strong in absolute terms though below the semiconductor cluster median of +36.5%, and the PEG ratio of 0.97 is close to 1, meaning price and expected earnings growth are roughly in line. Delivered demand check: the cluster's median revenue growth was +36.5% year over year — demand rising.
What would change this label: Move to UNDERVALUED if the forward P/E falls below about 23.6x (0.90x the current peer median of 26.26x) while revenue growth holds at or above +20% year over year. Move to OVERVALUED if the forward P/E expands above about 30.2x (1.15x the peer median) without revenue growth accelerating above +30% year over year, or if revenue growth slows below +10% year over year at the current multiple.
Texas Instruments makes the everyday chips that go into cars, factory equipment and gadgets, and its sales grew about 28% over the past year. Its shares cost about 27 times expected profits, almost exactly the same as similar chip companies at about 26 times. Given how fast it is growing, that price looks about right — neither a bargain nor overpriced.
Both lines start at 100 on 2020-09-01. Over the full window Texas Instruments returned +113.10% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Texas Instruments: -33.9% (2024-11-08 to 2025-04-21). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 26.81x against a peer median of 26.26x, a ratio of 1.02x — squarely inside the 0.90–1.15 fair range — with a trailing P/E of 39.67x and a price/sales ratio of 13.59x. The small premium over the median is paid for by delivered growth: latest-quarter revenue growth was +27.7% year over year (PRIMARY/EDGAR), strong in absolute terms though below the semiconductor cluster median of +36.5%, and the PEG ratio of 0.97 is close to 1, meaning price and expected earnings growth are roughly in line. Delivered demand check: the cluster's median revenue growth was +36.5% year over year — demand rising. The company’s forward P/E is 26.8× against a peer median of 26.3×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Semiconductors group's median latest-quarter revenue growth was +36.5% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +27.7% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Texas Instruments (TXN) | $306.04 | 26.8× | 39.7× |
| MRVL | $247.88 | 43.9× | 83.3× |
| ADI | $421.45 | 26.3× | 50.0× |
| QCOM | $182.56 | 19.8× | 21.2× |
| NXPI | $253.50 | 14.4× | 19.9× |
| MPWR | $1,211.89 | 37.5× | 73.9× |
| Peer median | 26.3× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Sep 2026 2026-09-30 | $6.1B | 64.2% | $2.4B | 2.62 | $3.0B |
| Q/E Jun 2026 2026-06-30 | $5.5B | 61.4% | $2.0B | 2.14 | $2.2B |
| Q/E Mar 2026 2026-03-31 | $4.8B | 58.0% | $1.5B | 1.68 | $844M |
| Q/E Dec 2025 2025-12-31 | $4.4B | 55.9% | $1.2B | — | $1.3B |
| Q/E Sep 2025 2025-09-30 | $4.7B | 57.4% | $1.4B | 1.48 | $993M |
| Q/E Jun 2025 2025-06-30 | $4.4B | 57.9% | $1.3B | 1.41 | $555M |
| Q/E Mar 2025 2025-03-31 | $4.1B | 56.8% | $1.2B | 1.28 | $-274M |
| Q/E Dec 2024 2024-12-31 | $4.0B | 57.8% | $1.2B | — | $806M |
| Q/E Sep 2024 2024-09-30 | $4.2B | 59.6% | $1.4B | 1.47 | $416M |
| Q/E Jun 2024 2024-06-30 | $3.8B | 57.9% | $1.1B | 1.22 | $507M |
| Q/E Mar 2024 2024-03-31 | $3.7B | 57.2% | $1.1B | 1.20 | $-231M |
| Q/E Dec 2023 2023-12-31 | $4.1B | 59.6% | $1.4B | — | $776M |
The last twelve reported quarters. Full 25-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | TEXAS INSTRUMENTS INC |
| Chief executive | Haviv Ilan (source: https://seekingalpha.com/article/4956090-texas-instruments-incorporated-txn-q3-2026-earnings-call-transcript) |
| Sector | Technology — Semiconductors — sells analogue and embedded-processing chips used across industrial, automotive and consumer products |
| Share price (Oct 28, 2026) | $306.04 |
| Market value (market cap) | $282.3B — share price times shares outstanding of 913,770,316 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $20.8B |
| Net income, last twelve months | $7.1B |
| Free cash flow, last twelve months | $7.3B |
| Latest reported quarter | Q/E Sep 2026 (of 25 quarters in the data pack) |
| Six-year price return vs S&P 500 | +113.10% vs +118.28% |
| Worst peak-to-trough fall | -33.9% (2024-11-08 to 2025-04-21) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000097476.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000097476.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/TXN/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.