Texas InstrumentsTXN -0.28%81 Interest Coverage is 12.94 as of Mar. 2026, which is 69% below its 10-year median of 41.87. GuruFocus rates TXN with a GF Score™ of 81/100 and a GF Value™ of $212.49 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 638 Semiconductors companies, Texas Instruments ranks worse than 61.44% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Texas Instruments's
Operating Income
for the
three
months ended in Mar. 2026 was $1,825 Mil. Texas Instruments's Interest Expense for the
three
months ended in Mar. 2026 was $-141 Mil.
Texas Instruments's interest coverage for the quarter that ended in Mar. 2026 was 12.94.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Texas Instruments's Interest Coverage or its related term are showing as below:
TXN'
s Interest Coverage Range Over the Past 10 Years
Min: 10.51 Med: 41.87 Max: 82.21
Current: 11.94
TXN's Interest Coverage is ranked worse than 61.44% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs TXN: 11.94
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Texas Instruments Interest Coverage Related Terms
Texas Instruments Interest Coverage Historical Data
* Premium members only.
The historical data trend for Texas Instruments's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TXN vs QCOM, ADI, MRVL: Interest Coverage Comparison
For the Semiconductors subindustry, Texas Instruments's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Texas Instruments's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Texas Instruments (TXN) has a Interest Coverage of 12.94 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Texas Instruments and its competitors. This is 69% below median its historical median of 41.87. Over the past decade, Texas Instruments' Interest Coverage has ranged from 10.51 to 82.21. According to the industry distribution chart, Texas Instruments ranks #392 out of 638 companies in the Semiconductors industry, placing it in the top 61.4%.
Is Texas Instruments' Interest Coverage too high?
Texas Instruments' current Interest Coverage of 12.94 is 69% below median its 10-year median of 41.87. Over the past 10 years, this metric has ranged from a low of 10.51 to a high of 82.21. The Semiconductors industry median Interest Coverage is 20.23. Texas Instruments' value of 12.94 is 36% below this industry median. Based on the distribution chart, Texas Instruments ranks #392 out of 638 companies in the Semiconductors industry, which is below the industry midpoint. 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' Interest Coverage compare to QCOM and ADI?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #392 out of 638 companies for Interest Coverage. This places Texas Instruments in the lower half of its industry. The industry median Interest Coverage is 20.23. Texas Instruments' value of 12.94 is 36% below this benchmark. Historically, Texas Instruments' own Interest Coverage has ranged from 10.51 to 82.21 over the past decade. While the company's 10-year median is 41.87 vs. the industry median of 20.23, Texas Instruments has consistently been below 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 Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current Interest Coverage of 12.94 is 36% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current Interest Coverage is 12.94, which is 69% below median its own 10-year median of 41.87. 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 $212.49, compared to a current price of $303.11 — trading 42.6% above its estimated fair value. The current Interest Coverage is 12.94, which is 69% below median its 10-year median of 41.87 and 36% below the Semiconductors industry median of 20.23. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Texas Instruments (TXN), the current Interest Coverage is 12.94 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 $303.11 is trading 42.6% above its estimated GF Value™ of $212.49.
GuruFocus considers Texas Instruments to be Significantly Overvalued.
Key valuation signals for TXN:
Interest Coverage: 12.94 (69% below median its 10-year median of 41.87)
GF Value™: $212.49 vs. price of $303.11 (42.6% above fair value)
Industry Position: 36% below the Semiconductors median (#392 of 638)
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
Get the complete analysis for TXN
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