Texas InstrumentsTXN -0.69%81 Gross Margin % is 58.01% as of Mar. 2026, which is 9% below its 10-year median of 63.91. GuruFocus rates TXN with a GF Score™ of 81/100 and a GF Value™ of $212.39 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,011 Semiconductors companies, Texas Instruments ranks better than 90.8% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Texas Instruments had a gross margin of 58.01% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Texas Instruments Gross Margin % Related Terms
Texas Instruments Gross Margin % Historical Data
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The historical data trend for Texas Instruments's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, Texas Instruments's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Instruments Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Texas Instruments's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Texas Instruments (TXN) has a Gross Margin % of 58.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Texas Instruments and its competitors. This is near median its historical median of 63.91. Over the past decade, Texas Instruments' Gross Margin % has ranged from 57.02 to 68.76. According to the industry distribution chart, Texas Instruments ranks #93 out of 1011 companies in the Semiconductors industry, placing it in the top 9.2%.
Is Texas Instruments' Gross Margin % too high?
Texas Instruments' current Gross Margin % of 58.01% is near median its 10-year median of 63.91. Over the past 10 years, this metric has ranged from a low of 57.02 to a high of 68.76. The Semiconductors industry median Gross Margin % is 29.61. Texas Instruments' value of 58.01% is 95.9% above this industry median. Based on the distribution chart, Texas Instruments ranks #93 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Instruments has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' Gross Margin % compare to QCOM and ADI?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #93 out of 1011 companies for Gross Margin %. This places Texas Instruments in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Texas Instruments' value of 58.01% is 95.9% above this benchmark. Historically, Texas Instruments' own Gross Margin % has ranged from 57.02 to 68.76 over the past decade. While the company's 10-year median is 63.91 vs. the industry median of 29.61, Texas Instruments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current Gross Margin % of 58.01% is 95.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current Gross Margin % is 58.01%, which is near median its own 10-year median of 63.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Instruments stock overvalued right now?
Based on GuruFocus' analysis, Texas Instruments (TXN) is currently considered Significantly Overvalued. The stock's GF Value™ is $212.39, compared to a current price of $302.28 — trading 42.3% above its estimated fair value. The current Gross Margin % is 58.01%, which is near median its 10-year median of 63.91 and 95.9% above the Semiconductors industry median of 29.61. Texas Instruments' overall GF Score™ is 81/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Texas Instruments (TXN), the current Gross Margin % is 58.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Instruments (TXN) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued.
The current stock price of $302.28 is trading 42.3% above its estimated GF Value™ of $212.39.
GuruFocus considers Texas Instruments to be Significantly Overvalued.
Key valuation signals for TXN:
Gross Margin %: 58.01% (near median its 10-year median of 63.91)
GF Value™: $212.39 vs. price of $302.28 (42.3% above fair value)
Industry Position: 95.9% above the Semiconductors median (#93 of 1011)
No single metric tells the full story. See the TXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
81GF Score
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