Texas Instruments (TXN) Stock Faces Rich Valuation As 20.2% EPS Growth Reshapes Narratives

Simply Wall St.07-26

Texas Instruments (TXN) opened Q2 2026 with revenue of US$5.5b and trailing twelve month revenue of US$19.5b, alongside trailing EPS of US$5.9 that has been growing at 20.2% over the last year against...

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The company has seen quarterly revenue move from US$4.4b in Q2 2025 to US$5.5b in Q2 2026, while trailing twelve month revenue has stepped from US$16.7b to US$19.5b. This sets the stage for investors to focus on how a 31% net margin profile...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"TXN":"德州仪器"},"translate_title":"德州仪器 (TXN) 股票面临丰富的估值，每股收益增长 20.2% 重塑了叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TXN":1.5},"content_text":"Texas Instruments (TXN) opened Q2 2026 with revenue of US$5.5b and trailing twelve month revenue of US$19.5b, alongside trailing EPS of US$5.9 that has been growing at 20.2% over the last year against analyst forecasts for roughly 17% annual growth ahead. The company has seen quarterly revenue move from US$4.4b in Q2 2025 to US$5.5b in Q2 2026, while trailing twelve month revenue has stepped from US$16.7b to US$19.5b. This sets the stage for investors to focus on how a 31% net margin profile supports the growth story. See our full analysis for Texas Instruments. With the latest numbers on the table, the next step is to see how Texas Instruments' reported growth, margins, and cash generation stack up against the most common narratives investors are using to frame this stock. See what the community is saying about Texas Instruments NasdaqGS:TXN Earnings & Revenue History as at Jul 2026 Advertisement20.2% earnings growth vs a soft five year trend  Over the last 12 months, Texas Instruments grew earnings by 20.2% on about US$19.5b of revenue and a 31% net margin, compared with a five year record that showed an average annual decline of 11.2%. What stands out for the bullish view is that this stronger trailing growth sits alongside expectations for roughly 17% annual earnings growth. However:\n     recent basic EPS on a trailing basis of about US$5.87 is being compared to bullish narrative assumptions that look out to much higher earnings by 2029, so current growth needs to be weighed against those longer dated goals, and the move in quarterly basic EPS from US$1.29 in Q1 2025 to US$1.69 in Q1 2026 supports the idea of improving profitability, but investors still have to judge whether this pace is enough for the more optimistic earnings path described in bullish scenarios.    For investors who think the current earnings run rate marks the start of a stronger phase for Texas Instruments, it can be useful to see how bullish analysts connect today’s numbers to their longer term story 🐂 Texas Instruments Bull Case Revenue at US$19.5b vs mid teens growth narratives  On a trailing basis, Texas Instruments reported about US$19.5b in revenue compared with US$16.7b a year earlier, while forecasts in the data point to roughly 11.3% annual revenue growth from here. Bears argue that heavier exposure to analog and embedded markets plus rising competition could cap that growth, and the current revenue run rate gives them a few reference points to watch, including:\n     the step in quarterly revenue from US$4.07b in Q1 2025 to US$5.46b in Q2 2026, which shows the business operating well above last year’s quarterly levels but still needs to be assessed against bearish assumptions of slower 8.9% annual revenue growth in their longer term case, and the fact that trailing revenue growth and forecasts both sit below the cited US market growth rates, which critics highlight when they question how much outperformance is realistic in the more cautious scenarios.    Skeptical investors who focus on whether Texas Instruments can justify premium expectations over time may want to see how the more cautious case frames these same revenue figures 🐻 Texas Instruments Bear Case P/E of 42.3x vs DCF fair value of US$245.24  At a share price of US$279.58, Texas Instruments trades on a trailing P/E of 42.3x, below the broader US Semiconductor industry average of 57.9x but slightly above the 41.3x peer average, and above a DCF fair value of US$245.24 in the data. Consensus narrative points to forecast earnings growth of about 17% per year and revenue growth of about 11.3% as support for that valuation. The numbers introduce a few trade offs to consider, such as:\n     the DCF fair value sitting below the current price, which some investors compare against the consensus analyst price target of US$320.03 when thinking about how much implied upside is already tied to those growth expectations, and the 2.03% dividend yield that is described as not well covered by free cash flow over the last year, which means part of the return profile currently leans on growth and multiple support rather than cash returns alone.    Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Texas Instruments on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. Sentiment on Texas Instruments can swing quickly when new data arrives. Move fast, review the full risk and reward picture, and weigh the 2 key rewards and 2 important warning signs. See What Else Is Out There For Texas Instruments, the combination of a P/E of 42.3x above a DCF fair value of US$245.24 and a dividend described as not well covered by free cash flow highlights valuation and income trade offs that investors may find uncomfortable. If that mix of a full looking price and a less supported dividend leaves you uneasy, you may want to quickly compare it with 48 high quality undervalued stocks to see stocks where pricing and fundamentals appear better aligned.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Texas Instruments might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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