Texas InstrumentsTXN -0.28%81 ROA % is 17.92% as of Mar. 2026, which is 29% below its 10-year median of 25.28. 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 1,028 Semiconductors companies, Texas Instruments ranks better than 90.66% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Texas Instruments's annualizedNet Income for the quarter that ended in Mar. 2026 was $6,180 Mil.
Texas Instruments's average Total Assets over the quarter that ended in Mar. 2026 was $34,489 Mil. Therefore, Texas Instruments's annualized ROA % for the quarter that ended in Mar. 2026 was 17.92%.
The historical rank and industry rank for Texas Instruments's ROA % or its related term are showing as below:
TXN'
s ROA % Range Over the Past 10 Years
Min: 14.14 Med: 25.28 Max: 35.29
Current: 15.54
During the past 13 years, Texas Instruments's highest ROA % was 35.29%. The lowest was 14.14%. And the median was 25.28%.
TXN's ROA % is ranked better than 90.66% of 1028
companies
in the Semiconductors industry
Industry Median: 2.43
vs TXN: 15.54
Texas Instruments (NAS:TXN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Texas Instruments ROA % Related Terms
Texas Instruments ROA % Historical Data
* Premium members only.
The historical data trend for Texas Instruments's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's ROA % distribution charts can be found below:
* The bar in red indicates where Texas Instruments's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Texas Instruments (TXN) has a ROA % of 17.92% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Texas Instruments and its competitors. This is 29% below median its historical median of 25.28. Over the past decade, Texas Instruments' ROA % has ranged from 14.14 to 35.29. According to the industry distribution chart, Texas Instruments ranks #96 out of 1028 companies in the Semiconductors industry, placing it in the top 9.3%.
Is Texas Instruments' ROA % too high?
Texas Instruments' current ROA % of 17.92% is 29% below median its 10-year median of 25.28. Over the past 10 years, this metric has ranged from a low of 14.14 to a high of 35.29. The Semiconductors industry median ROA % is 2.43. Texas Instruments' value of 17.92% is 637.4% above this industry median. Based on the distribution chart, Texas Instruments ranks #96 out of 1028 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' ROA % compare to QCOM and ADI?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #96 out of 1028 companies for ROA %. This places Texas Instruments in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 2.43. Texas Instruments' value of 17.92% is 637.4% above this benchmark. Historically, Texas Instruments' own ROA % has ranged from 14.14 to 35.29 over the past decade. While the company's 10-year median is 25.28 vs. the industry median of 2.43, 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 ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.43, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current ROA % of 17.92% is 637.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median ROA % is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current ROA % is 17.92%, which is 29% below median its own 10-year median of 25.28. 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 ROA % is 17.92%, which is 29% below median its 10-year median of 25.28 and 637.4% above the Semiconductors industry median of 2.43. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Texas Instruments (TXN), the current ROA % is 17.92% 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:
ROA %: 17.92% (29% below median its 10-year median of 25.28)
GF Value™: $212.39 vs. price of $303.50 (42.9% above fair value)
Industry Position: 637.4% above the Semiconductors median (#96 of 1028)
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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