Texas Instruments Incorporated (TXN)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses, honest accounting, and a price that leaves room for error. Texas Instruments makes analog and embedded chips, and the supplied numbers show real strengths: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $5.5B and net income $2.0B, versus $4.4B and $1.3B in fiscal Q2 2025, the quarter ended 2025-06-30. That is powerful recent growth. FairStock's calculations put return on equity at 35.18%, ROCE at 13.06%, Piotroski F-score at 8/9, and Altman Z-score at 11.68. The latest quarter's 36.24% net margin is excellent. But this is a cyclical semiconductor business, as the Lynch category notes: earnings follow the economic cycle. Filed annual results show net income of $6.5B in fiscal 2023, the year ended 2023-12-31, $4.8B in fiscal 2024, the year ended 2024-12-31, and $5.0B in fiscal 2025, the year ended 2025-12-31; revenue was $17.5B, $15.6B, and $17.7B over those same years. Valuation is my main hesitation. At the 2026-10-13 close of $287.85, FairStock shows P/E 43.68, P/B 14.60, EV/EBITDA 28.24, and FCF yield of 2.0% on $5.4B trailing free cash flow. The Graham Number is $54.07, giving a margin of safety of -432.37%, so Graham would find no bargain here. PEG of 0.83 offers some comfort if growth persists, and the 2.28% dividend yield is modest. I admire the business, but the price already assumes a lot. Quality without a margin of safety is not value.

In plain English: Texas Instruments makes semiconductor chips used in electronics. Its latest quarter showed more sales and profit than a year earlier, and it earns strong profit margins. But the stock price looks expensive compared with the company's profits, accounting value, and cash generation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer