Theo Outlook
Texas Instruments (TXN) presents a moderately bullish thesis for long-term investors, trading at $190.33 with a trailing P/E of 34.99 on EPS of $5.44 and a market cap of $173B. Revenue TTM stands at $17.7B, reflecting 10.4% quarterly growth YOY, while forward P/E of 28.9 anticipates FY2026 EPS of $6.42, signaling robust profitability recovery. As a semiconductor leader, TXN's stable 2.84% dividend yield and low beta of 0.98 position it as a defensive play in tech.
Key catalysts include upward EPS revisions (21 up in 30 days for Q1) and next earnings on April 22, 2026, with Q1 EPS estimated at $1.37 and FY revenue at $19.6B. Dividend hikes to $1.42 quarterly underscore cash flow strength, bolstered by industrial and automotive demand for analog chips, where TXN holds dominance. Analyst consensus targets $222, implying 16% upside amid AI-enabling semis growth.
Risks encompass semiconductor cyclicality, evidenced by -3.2% quarterly EPS growth YOY, China trade tensions, and competition from fabless peers. Macro headwinds like inventory gluts could pressure margins (34% gross). Mitigations: fortress balance sheet, share buybacks, and diversified end-markets reduce volatility; monitor Q1 guidance for demand signals. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.