Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

$24.99

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Texas Instruments Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating profit1 ÷ Revenue1
Dec 31, 2025 = 100 × ÷
Dec 31, 2024 = 100 × ÷
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Dec 31, 2021 = 100 × ÷
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Dec 31, 2005 = 100 × ÷

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions

The operating profit margin exhibited significant fluctuations between 2005 and 2025. Initially, the metric demonstrated a generally increasing trend, followed by periods of volatility and subsequent strong growth, culminating in a recent decline.

Initial Growth & Volatility (2005-2009)
From 2005 to 2007, the operating profit margin increased consistently, rising from 20.84% to a peak of 25.28%. A subsequent decline was observed in 2008 and 2009, falling to 19.09%, likely influenced by broader economic conditions. This period indicates sensitivity to external factors.
Significant Expansion (2010-2018)
A substantial increase in operating profit margin occurred between 2010 and 2018. The margin more than doubled from 19.09% in 2009 to 42.53% in 2018. This expansion suggests improved operational efficiency, pricing power, or a shift towards higher-margin products. The peak in 2018 represents the highest margin achieved during the analyzed period.
Recent Decline (2019-2025)
Following the peak in 2018, the operating profit margin experienced a decline. While remaining relatively high in 2019 at 39.79% and 2020 at 40.76%, it increased sharply in 2021 to 48.84% and 2022 to 50.63%. However, a more pronounced decrease was observed in 2023 and 2024, falling to 41.85% and 34.94% respectively, and continued to 34.06% in 2025. This recent trend suggests increasing cost pressures, decreased pricing power, or a change in product mix.
Correlation with Revenue
While not the primary focus, a review of revenue alongside the operating profit margin reveals a complex relationship. Revenue did not consistently increase alongside the margin, particularly during the period of significant margin expansion (2010-2018). This suggests that margin improvements were not solely driven by increased sales volume, but rather by factors affecting profitability per unit sold.

In summary, the operating profit margin demonstrated a dynamic pattern over the analyzed period. The company experienced substantial margin growth, particularly between 2010 and 2018, but more recently has faced headwinds resulting in a declining trend. Further investigation into the underlying drivers of these fluctuations is warranted.

Comparison to Competitors

Texas Instruments Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Texas Instruments Inc. Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. Broadcom Inc. Intel Corp. Lam Research Corp. Micron Technology Inc. NVIDIA Corp. Qualcomm Inc.
Dec 31, 2025
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Dec 31, 2005

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).