Texas InstrumentsTXN -0.28%81 Net Margin % is 32.02% as of Mar. 2026, which is 9% below its 10-year median of 35.12. 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 1,023 Semiconductors companies, Texas Instruments ranks better than 93.45% on this metric.
The historical rank and industry rank for Texas Instruments's Net Margin % or its related term are showing as below:
TXN'
s Net Margin % Range Over the Past 10 Years
Min: 24.61 Med: 35.12 Max: 43.68
Current: 29.11
TXN's Net Margin % is ranked better than 93.45% of 1023
companies
in the Semiconductors industry
Industry Median: 4.15
vs TXN: 29.11
Texas Instruments (NAS:TXN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Texas Instruments Net Margin % Related Terms
Texas Instruments Net Margin % Historical Data
* Premium members only.
The historical data trend for Texas Instruments's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's Net Margin % distribution charts can be found below:
* The bar in red indicates where Texas Instruments's Net 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.
Texas Instruments (TXN) has a Net Margin % of 32.02% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Texas Instruments and its competitors. This is near median its historical median of 35.12. Over the past decade, Texas Instruments' Net Margin % has ranged from 24.61 to 43.68. According to the industry distribution chart, Texas Instruments ranks #67 out of 1023 companies in the Semiconductors industry, placing it in the top 6.5%.
Is Texas Instruments' Net Margin % too high?
Texas Instruments' current Net Margin % of 32.02% is near median its 10-year median of 35.12. Over the past 10 years, this metric has ranged from a low of 24.61 to a high of 43.68. The Semiconductors industry median Net Margin % is 4.15. Texas Instruments' value of 32.02% is 671.6% above this industry median. Based on the distribution chart, Texas Instruments ranks #67 out of 1023 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' Net Margin % compare to QCOM and ADI?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #67 out of 1023 companies for Net Margin %. This places Texas Instruments in the top 7% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.15. Texas Instruments' value of 32.02% is 671.6% above this benchmark. Historically, Texas Instruments' own Net Margin % has ranged from 24.61 to 43.68 over the past decade. While the company's 10-year median is 35.12 vs. the industry median of 4.15, 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 Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.15, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current Net Margin % of 32.02% is 671.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median Net Margin % is 4.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current Net Margin % is 32.02%, which is near median its own 10-year median of 35.12. 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 $303.50 — trading 42.9% above its estimated fair value. The current Net Margin % is 32.02%, which is near median its 10-year median of 35.12 and 671.6% above the Semiconductors industry median of 4.15. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Texas Instruments (TXN), the current Net Margin % is 32.02% 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 $303.50 is trading 42.9% above its estimated GF Value™ of $212.39.
GuruFocus considers Texas Instruments to be Significantly Overvalued.
Key valuation signals for TXN:
Net Margin %: 32.02% (near median its 10-year median of 35.12)
GF Value™: $212.39 vs. price of $303.50 (42.9% above fair value)
Industry Position: 671.6% above the Semiconductors median (#67 of 1023)
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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