CluenexTexas Instruments TXN
Texas Instruments scores good on business quality (6.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Texas Instruments does
Texas Instruments designs and sells analog and embedded processing semiconductors to industrial, automotive, and personal electronics manufacturers. Customers buy these chips to manage power, sense signals, and process data inside physical products.
- What it does best
Texas Instruments dominates analog semiconductor manufacturing through massive internal wafer fabs, posting an operating margin of 38% that dwarfs AMD at 16%. Owning proprietary 300mm wafer lines lowers unit production costs, creating a structural cost advantage rivals outsourcing to foundries struggle to match.
- The main risk
Aggressive capital spending on new internal manufacturing fabs is depressing free cash flow, which fell to $2.6B in 2025 from $6.3B in 2021. If end-market demand fails to absorb this added production capacity, heavy depreciation charges will permanently erode returns on invested capital.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin stands at 58.3% while operating margin reaches 38.1%, driving an exceptional profitability score. These margins are expanding as revenue climbs back toward prior peaks, proving that internal manufacturing scale preserves high profitability on each chip sold.
A vast catalog of proprietary analog designs locks in industrial and automotive engineers who cannot swap chips without redesigning entire circuit boards. This switching cost advantage is reflected in a sector-leading ROE of 35.8% and operating margins sitting in the 91st sector percentile.
Revenue growth stands at 13.0%, marking a solid rebound after historical revenue drops from $20.0B in 2022 down to $15.6B in 2024. This top-line expansion is accelerating past recent historical slumps, though it remains middle of the pack in its sector at the 52nd percentile.
Total debt sits at $14.0B against $4.9B in cash, yielding an interest coverage of 13.1x where debt service remains manageable. Free cash flow reached $5.4B recently, showing recovery from prior-year lows, but heavy capital outlays mean the balance sheet is softening.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $1.9M outside pre-planned sales.
Our sealed record on TXN
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Texas Instruments scores good on the Cluenex quality check (6.1 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $1.9M outside pre-planned sales.
Oct 21, 2026, after the close.
See TXN today
- Today's verdict on TXN, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Texas Instruments (TXN)”, https://cluenex.com/stocks/txn/, data as of Oct 10, 2026.