3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Texas Instruments's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -31.61%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Texas Instruments's 3-Year ROIIC % or its related term are showing as below:
TXN's 3-Year ROIIC % is ranked worse than 77.31% of 996
companies
in the Semiconductors industry
Industry Median: -0.25
vs TXN: -31.61
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Texas Instruments 3-Year ROIIC % Related Terms
Texas Instruments 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Texas Instruments's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Texas Instruments's 3-Year ROIIC % falls into.
Texas Instruments's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 5377.412 (Dec. 2025) - 9067.2237 (Dec. 2022) )
/
( 28581 (Dec. 2025) - 16909 (Dec. 2022) )
=
-3689.8117
/
11672
=
-31.61%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Texas Instruments (TXN) has a 3-Year ROIIC % of -31.61 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Texas Instruments and its competitors. According to the industry distribution chart, Texas Instruments ranks #770 out of 996 companies in the Semiconductors industry, placing it in the top 77.3%.
Is Texas Instruments' 3-Year ROIIC % too high?
Texas Instruments' current 3-Year ROIIC % is -31.61. Based on the distribution chart, Texas Instruments ranks #770 out of 996 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Texas Instruments has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' 3-Year ROIIC % compare to MRVL and QCOM?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #770 out of 996 companies for 3-Year ROIIC %. This places Texas Instruments in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Texas Instruments and its competitors. Texas Instruments's current 3-Year ROIIC % is -31.61. 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 $213.71, compared to a current price of $293.30 — trading 37.2% above its estimated fair value. The current 3-Year ROIIC % is -31.61. Texas Instruments' overall GF Score™ is 84/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Texas Instruments (TXN), the current 3-Year ROIIC % is -31.61 as of Dec. 2025. 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 $293.30 is trading 37.2% above its estimated GF Value™ of $213.71.
GuruFocus considers Texas Instruments to be Significantly Overvalued.
Key valuation signals for TXN:
3-Year ROIIC %: -31.61
GF Value™: $213.71 vs. price of $293.30 (37.2% above fair value)
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.
84GF Score
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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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