Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Texas Instruments Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The financial performance exhibits a distinct cyclical pattern characterized by a period of peak profitability in 2022, a sustained contraction through 2023 and 2024, and a subsequent recovery phase beginning in 2025 and continuing through late 2026.
- Margin Analysis
- Gross profit margin peaked at 69.51% in September 2022 before entering a steady decline that reached a trough of 57.02% by December 2025. A recovery trend is evident in 2026, with the margin climbing back to 60.24% by September 30, 2026.
- Operating profit margin experienced a more pronounced contraction than gross margin, falling from a high of 51.84% in September 2022 to a low of 34.06% in December 2025. The recovery in this metric was more aggressive during 2026, ending the period at 40.76%.
- Net profit margin followed a similar trajectory, descending from 44.21% in September 2022 to its lowest point of 28.28% in December 2025, before rebounding to 34.25% by the end of the analyzed period.
- Return Metrics
- Return on equity (ROE) showed significant volatility, peaking at 61.52% in September 2022 and dropping sharply to 28.39% by December 2024. A gradual ascent followed, with ROE recovering to 37.08% by September 30, 2026.
- Return on assets (ROA) mirrored the ROE trend, declining from a peak of 34.69% in June 2022 to a minimum of 13.51% in December 2024. The metric demonstrated steady improvement thereafter, reaching 19.31% by the final quarter of the analysis.
The synchronization of the decline and recovery across all five ratios suggests that the company faced systemic pressures that affected both top-line efficiency and overall asset utilization. The recovery phase starting in early 2025 indicates a successful stabilization of costs or an improvement in pricing power and revenue growth, although ratios have not yet returned to the peak levels observed in 2022.
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Gross Profit Margin
Texas Instruments Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross profit | 3,887) | 3,352) | 2,799) | 2,472) | 2,723) | 2,575) | 2,313) | 2,314) | 2,474) | 2,211) | 2,095) | 2,431) | 2,815) | 2,910) | 2,863) | 3,087) | 3,617) | 3,625) | 3,442) | ||||||
| Revenue | 6,055) | 5,463) | 4,825) | 4,423) | 4,742) | 4,448) | 4,069) | 4,007) | 4,151) | 3,822) | 3,661) | 4,077) | 4,532) | 4,531) | 4,379) | 4,670) | 5,241) | 5,212) | 4,905) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 60.24% | 58.33% | 57.32% | 57.02% | 57.48% | 58.03% | 58.02% | 58.14% | 58.63% | 59.36% | 61.01% | 62.90% | 64.46% | 66.29% | 67.64% | 68.76% | 69.51% | 69.26% | 68.68% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 53.20% | 50.28% | 49.52% | 48.26% | 47.62% | 50.09% | 49.35% | 48.38% | 47.61% | 46.76% | 46.12% | 45.01% | 43.70% | 43.98% | 44.93% | 46.55% | 48.01% | 48.53% | ||||||
| Analog Devices Inc. | 65.80% | 64.49% | 62.84% | 61.47% | 60.15% | 58.76% | 57.16% | 57.08% | 57.85% | 59.84% | 62.47% | 64.01% | 65.23% | 65.69% | 65.62% | 62.70% | 58.63% | 58.33% | 57.81% | ||||||
| Applied Materials Inc. | 49.40% | 48.96% | 48.72% | 48.67% | 48.50% | 48.14% | 47.73% | 47.46% | 47.41% | 47.18% | 46.98% | 46.70% | 46.40% | 46.35% | 46.39% | 46.51% | 47.05% | 47.51% | 47.67% | ||||||
| Broadcom Inc. | 68.77% | 68.28% | 67.82% | 67.77% | 66.83% | 66.09% | 64.70% | 63.03% | 63.90% | 65.05% | 67.06% | 68.93% | 68.28% | 67.71% | 66.98% | 66.55% | 65.68% | 64.42% | 62.95% | ||||||
| Intel Corp. | — | 38.60% | 35.43% | 34.77% | 35.58% | 29.76% | 31.67% | 32.66% | 34.67% | 41.42% | 41.49% | 40.04% | 38.14% | 38.27% | 38.34% | 42.61% | 46.56% | 49.85% | 54.32% | ||||||
| KLA Corp. | 61.45% | 61.57% | 61.30% | 60.91% | 60.56% | 59.68% | 59.75% | 59.97% | 59.57% | 59.76% | 59.44% | 59.81% | 60.16% | 60.69% | 61.23% | 61.00% | 60.86% | 60.77% | 60.27% | ||||||
| Lam Research Corp. | 49.98% | 49.80% | 49.31% | 48.71% | 48.03% | 47.60% | 47.47% | 47.32% | 46.84% | 45.23% | 44.80% | 44.62% | 44.65% | 45.31% | 45.74% | 45.69% | 45.93% | 46.30% | 46.19% | ||||||
| Marvell Technology Inc. | 50.69% | 44.64% | 43.17% | 41.31% | 39.60% | 44.15% | 42.35% | 41.64% | 41.87% | 45.01% | 48.22% | 50.47% | 51.34% | 50.94% | 47.21% | 46.26% | 45.92% | 46.07% | 50.83% | ||||||
| Micron Technology Inc. | 72.57% | 58.44% | 45.31% | 39.79% | 37.13% | 34.73% | 30.92% | 22.35% | 11.42% | -0.32% | -14.49% | -9.11% | 9.03% | 27.51% | 41.34% | 45.18% | 46.89% | 45.81% | 41.37% | ||||||
| NVIDIA Corp. | 70.05% | 69.85% | 70.11% | 74.99% | 75.86% | 75.98% | 75.29% | 72.72% | 69.85% | 64.62% | 56.31% | 56.93% | 57.84% | 60.45% | 65.26% | 64.93% | 64.40% | 63.76% | 62.43% | ||||||
| Qualcomm Inc. | 54.23% | 54.80% | 55.10% | 55.43% | 55.68% | 55.68% | 55.99% | 56.21% | 55.90% | 55.80% | 55.54% | 55.70% | 56.31% | 56.46% | 57.22% | 57.84% | 57.99% | 58.51% | 58.16% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Gross profit margin = 100
× (Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (3,887 + 3,352 + 2,799 + 2,472)
÷ (6,055 + 5,463 + 4,825 + 4,423)
= 60.24%
2 Click competitor name to see calculations.
The gross profit margin exhibited a distinct cyclical pattern characterized by an initial peak, a prolonged period of contraction, and a subsequent recovery phase over the analyzed period.
- Initial Peak and Stability
- Between March 2022 and September 2022, the gross profit margin remained robust, peaking at 69.51%. During this interval, high revenue levels coincided with peak gross profit, indicating strong pricing power and optimal cost structures.
- Systemic Margin Erosion
- A consistent downward trend began in December 2022 and persisted through the first quarter of 2024. The margin declined from 68.76% in December 2022 to 61.01% by March 2024. This erosion occurred alongside a general contraction in quarterly revenue, suggesting that the cost of goods sold did not decrease proportionally with falling sales.
- Stabilization and Trough
- From June 2024 through December 2025, the gross profit margin entered a phase of stabilization, fluctuating within a narrow band between 57.02% and 59.36%. The absolute trough was reached in December 2025 at 57.02%, marking the conclusion of the downward cycle.
- Recovery and Expansion
- Beginning in March 2026, a reversal of the trend is observed. The gross profit margin increased to 58.33% in June 2026 and climbed further to 60.24% by September 2026. This recovery is strongly correlated with a significant expansion in revenue, which rose from 4,825 million US dollars in March 2026 to 6,055 million US dollars by September 2026, indicating improved operational leverage and a return to higher profitability levels.
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Operating Profit Margin
Texas Instruments Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Operating profit | 2,874) | 2,310) | 1,808) | 1,473) | 1,663) | 1,563) | 1,324) | 1,377) | 1,554) | 1,248) | 1,286) | 1,533) | 1,892) | 1,972) | 1,934) | 2,176) | 2,678) | 2,723) | 2,563) | ||||||
| Revenue | 6,055) | 5,463) | 4,825) | 4,423) | 4,742) | 4,448) | 4,069) | 4,007) | 4,151) | 3,822) | 3,661) | 4,077) | 4,532) | 4,531) | 4,379) | 4,670) | 5,241) | 5,212) | 4,905) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 40.76% | 37.29% | 35.29% | 34.06% | 34.33% | 34.89% | 34.29% | 34.94% | 35.78% | 37.03% | 39.78% | 41.85% | 44.03% | 46.54% | 48.77% | 50.63% | 51.84% | 51.52% | 50.55% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 15.71% | 11.65% | 10.66% | 8.78% | 7.66% | 9.62% | 7.37% | 5.64% | 3.74% | 2.55% | 1.77% | -0.41% | -1.73% | 0.73% | 5.36% | 11.48% | 16.83% | 20.86% | ||||||
| Analog Devices Inc. | 35.55% | 32.50% | 29.24% | 26.61% | 24.61% | 22.71% | 20.76% | 21.56% | 21.63% | 24.23% | 28.34% | 31.07% | 33.43% | 33.06% | 32.15% | 27.29% | 20.49% | 20.42% | 18.87% | ||||||
| Applied Materials Inc. | 29.64% | 28.59% | 28.16% | 29.22% | 30.14% | 29.66% | 29.22% | 28.95% | 29.02% | 28.87% | 28.89% | 28.86% | 28.92% | 29.28% | 29.64% | 30.20% | 31.03% | 31.80% | 31.37% | ||||||
| Broadcom Inc. | 48.05% | 43.39% | 40.69% | 39.89% | 37.72% | 35.94% | 32.35% | 26.10% | 27.93% | 30.84% | 36.50% | 45.25% | 45.00% | 45.19% | 44.23% | 42.84% | 40.47% | 37.37% | 34.35% | ||||||
| Intel Corp. | — | -0.14% | -9.39% | -4.19% | -4.46% | -22.84% | -20.57% | -21.99% | -17.52% | -0.83% | 0.89% | 0.17% | -6.86% | -7.01% | -6.16% | 3.70% | 12.16% | 18.88% | 25.87% | ||||||
| KLA Corp. | 41.68% | 41.99% | 39.86% | 39.28% | 38.10% | 35.37% | 34.78% | 34.10% | 33.27% | 34.30% | 37.20% | 38.06% | 39.00% | 39.86% | 40.05% | 39.67% | 39.30% | 38.90% | 37.26% | ||||||
| Lam Research Corp. | 34.26% | 33.76% | 33.00% | 32.01% | 30.85% | 29.50% | 28.89% | 28.61% | 28.03% | 27.08% | 28.42% | 29.69% | 30.76% | 31.76% | 31.71% | 31.24% | 31.18% | 31.60% | 31.06% | ||||||
| Marvell Technology Inc. | 14.80% | 1.29% | -4.57% | -12.49% | -18.39% | -8.19% | -10.05% | -10.31% | -9.29% | -4.61% | -0.25% | 4.02% | 4.27% | 2.00% | -3.85% | -7.79% | -9.80% | -10.42% | -7.87% | ||||||
| Micron Technology Inc. | 65.63% | 48.34% | 32.45% | 26.14% | 22.59% | 19.76% | 15.83% | 5.19% | -7.91% | -22.77% | -41.18% | -36.97% | -15.14% | 8.73% | 25.27% | 31.54% | 34.38% | 31.86% | 27.17% | ||||||
| NVIDIA Corp. | 58.84% | 58.09% | 58.03% | 62.42% | 62.71% | 61.87% | 59.85% | 54.12% | 45.94% | 33.04% | 17.37% | 15.66% | 20.79% | 26.93% | 33.69% | 37.31% | 35.34% | 33.36% | 28.62% | ||||||
| Qualcomm Inc. | 23.19% | 25.52% | 27.12% | 27.90% | 27.78% | 27.14% | 26.29% | 25.85% | 23.83% | 23.35% | 22.74% | 21.74% | 26.03% | 30.91% | 33.66% | 35.88% | 35.82% | 32.65% | 30.88% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Operating profit margin = 100
× (Operating profitQ3 2026
+ Operating profitQ2 2026
+ Operating profitQ1 2026
+ Operating profitQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (2,874 + 2,310 + 1,808 + 1,473)
÷ (6,055 + 5,463 + 4,825 + 4,423)
= 40.76%
2 Click competitor name to see calculations.
The operating profit margin exhibits a distinct cyclical trajectory characterized by an initial period of high stability, a sustained multi-quarter contraction, and a subsequent recovery phase.
- Peak Profitability and Initial Stability
- Between March 2022 and December 2022, the operating profit margin remained robust and stable, fluctuating within a narrow range between 50.55% and 51.84%. The peak efficiency was reached in September 2022, during which operating profit stood at $2,678 million against revenue of $5,241 million.
- Sustained Margin Contraction
- A consistent downward trend emerged starting in March 2023, as the margin declined from 48.77% to 34.06% by December 2024. This contraction period was marked by a simultaneous decline in total revenue, which reached a trough of $3,661 million in March 2024, suggesting that operating costs did not scale down as rapidly as revenue decreased.
- Recovery and Operational Expansion
- Beginning in March 2025, a trend of margin expansion is observed. The operating profit margin climbed from 34.29% to 40.76% by September 2026. This recovery is strongly correlated with a significant increase in scale, with revenue rising to $6,055 million and operating profit reaching $2,874 million by the end of the analyzed period, indicating a return to higher operational leverage.
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Net Profit Margin
Texas Instruments Inc., net profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income | 2,425) | 1,980) | 1,545) | 1,163) | 1,364) | 1,295) | 1,179) | 1,205) | 1,362) | 1,127) | 1,105) | 1,371) | 1,709) | 1,722) | 1,708) | 1,962) | 2,295) | 2,291) | 2,201) | ||||||
| Revenue | 6,055) | 5,463) | 4,825) | 4,423) | 4,742) | 4,448) | 4,069) | 4,007) | 4,151) | 3,822) | 3,661) | 4,077) | 4,532) | 4,531) | 4,379) | 4,670) | 5,241) | 5,212) | 4,905) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 34.25% | 31.11% | 29.11% | 28.28% | 29.21% | 30.23% | 30.36% | 30.68% | 31.60% | 33.01% | 35.16% | 37.16% | 39.21% | 40.84% | 42.33% | 43.68% | 44.21% | 43.78% | 43.34% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 15.58% | 13.37% | 12.51% | 10.32% | 9.57% | 8.03% | 6.36% | 7.52% | 5.82% | 4.89% | 3.77% | 0.94% | -0.11% | 1.71% | 5.59% | 9.96% | 14.51% | 17.98% | ||||||
| Analog Devices Inc. | 29.79% | 26.01% | 23.02% | 20.58% | 18.85% | 18.65% | 16.75% | 17.35% | 17.07% | 20.45% | 24.34% | 26.94% | 29.23% | 28.16% | 27.27% | 22.88% | 17.00% | 16.84% | 15.18% | ||||||
| Applied Materials Inc. | 30.05% | 29.31% | 27.78% | 24.67% | 23.88% | 24.06% | 22.95% | 26.41% | 27.74% | 27.56% | 27.03% | 25.86% | 24.27% | 24.36% | 24.57% | 25.31% | 26.42% | 27.20% | 27.10% | ||||||
| Broadcom Inc. | 42.94% | 38.85% | 36.57% | 36.20% | 31.59% | 22.64% | 18.47% | 11.43% | 10.88% | 24.10% | 29.93% | 39.31% | 39.25% | 39.06% | 37.19% | 34.62% | 31.96% | 29.76% | 27.47% | ||||||
| Intel Corp. | — | -19.79% | -5.90% | -0.51% | 0.37% | -38.64% | -36.19% | -35.32% | -29.42% | 1.77% | 7.36% | 3.11% | -3.11% | -1.71% | -5.06% | 12.71% | 19.13% | 26.03% | 31.68% | ||||||
| KLA Corp. | 35.66% | 35.76% | 33.83% | 33.41% | 31.99% | 29.58% | 28.92% | 28.15% | 27.19% | 27.98% | 30.51% | 32.27% | 33.01% | 33.77% | 33.28% | 36.06% | 36.41% | 36.57% | 36.52% | ||||||
| Lam Research Corp. | 30.94% | 30.22% | 29.66% | 29.06% | 27.19% | 26.49% | 26.02% | 25.68% | 25.35% | 24.15% | 25.08% | 25.88% | 26.08% | 26.91% | 26.96% | 26.73% | 27.13% | 27.78% | 27.07% | ||||||
| Marvell Technology Inc. | 31.75% | -1.43% | -7.56% | -15.35% | -27.49% | -18.30% | -18.33% | -16.95% | -10.11% | -6.74% | -2.88% | -2.76% | -2.43% | -3.95% | -9.82% | -9.44% | -10.48% | -10.74% | -8.13% | ||||||
| Micron Technology Inc. | 55.91% | 41.49% | 28.15% | 22.84% | 18.41% | 14.92% | 13.34% | 3.10% | -7.20% | -20.57% | -42.47% | -37.54% | -16.02% | 6.99% | 22.78% | 28.24% | 30.61% | 28.95% | 24.86% | ||||||
| NVIDIA Corp. | 53.01% | 52.41% | 51.69% | 55.85% | 55.69% | 55.04% | 53.40% | 48.85% | 42.09% | 31.59% | 18.52% | 16.19% | 20.85% | 26.03% | 32.02% | 36.23% | 33.81% | 32.33% | 27.66% | ||||||
| Qualcomm Inc. | 21.01% | 22.31% | 11.96% | 12.51% | 26.76% | 26.11% | 25.94% | 26.03% | 23.33% | 23.03% | 21.39% | 20.19% | 22.33% | 25.67% | 27.40% | 29.27% | 30.52% | 28.42% | 27.71% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Net profit margin = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (2,425 + 1,980 + 1,545 + 1,163)
÷ (6,055 + 5,463 + 4,825 + 4,423)
= 34.25%
2 Click competitor name to see calculations.
The net profit margin exhibits a pronounced cyclical trajectory over the analyzed period, characterized by an initial phase of high stability, a prolonged contraction, and a subsequent recovery toward the end of the timeframe.
- Period of Peak Profitability and Initial Decline
- Between March 2022 and December 2022, the net profit margin remained robust, peaking at 44.21% in September 2022. However, beginning in early 2023, a consistent downward trend emerged. The margin decreased from 42.33% in March 2023 to 37.16% by December 2023, coinciding with a gradual reduction in both revenue and net income.
- Margin Contraction and Trough
- The downward pressure on profitability intensified throughout 2024 and 2025. The net profit margin fell below the 35% threshold in March 2024 and continued to erode, reaching a cyclical low of 28.28% in December 2025. This period represents a significant compression of profitability, where net income declined more rapidly than the corresponding decrease in revenue, suggesting increased operational costs or pricing pressures during the revenue downturn.
- Recovery and Expansion Phase
- A reversal in the trend is observed starting in March 2026. As revenue grew from 4.825 billion US$ in March 2026 to 6.055 billion US$ by September 2026, net income experienced an accelerated recovery. This resulted in a steady expansion of the net profit margin, which rose from 29.11% in March 2026 to 34.25% by September 2026, indicating improved operating leverage as the business scaled back up.
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Return on Equity (ROE)
Texas Instruments Inc., ROE calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income | 2,425) | 1,980) | 1,545) | 1,163) | 1,364) | 1,295) | 1,179) | 1,205) | 1,362) | 1,127) | 1,105) | 1,371) | 1,709) | 1,722) | 1,708) | 1,962) | 2,295) | 2,291) | 2,201) | ||||||
| Stockholders’ equity | 19,185) | 18,007) | 16,778) | 16,273) | 16,627) | 16,403) | 16,406) | 16,903) | 17,268) | 17,214) | 16,983) | 16,897) | 16,631) | 15,940) | 15,243) | 14,577) | 14,507) | 14,092) | 14,017) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 37.08% | 33.61% | 31.99% | 30.73% | 30.33% | 30.73% | 29.70% | 28.39% | 28.75% | 30.86% | 34.78% | 38.53% | 42.70% | 48.22% | 54.16% | 60.02% | 61.52% | 60.86% | 58.62% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 9.57% | 7.77% | 6.88% | 5.44% | 4.75% | 3.85% | 2.85% | 3.20% | 2.39% | 1.99% | 1.53% | 0.38% | -0.05% | 0.72% | 2.41% | 4.17% | 5.67% | 6.13% | ||||||
| Analog Devices Inc. | 12.32% | 9.82% | 8.01% | 6.70% | 5.74% | 5.23% | 4.46% | 4.65% | 4.70% | 6.07% | 7.92% | 9.32% | 10.45% | 10.06% | 9.39% | 7.54% | 5.15% | 4.43% | 3.43% | ||||||
| Applied Materials Inc. | 36.16% | 35.58% | 36.10% | 34.28% | 35.03% | 35.64% | 34.06% | 37.77% | 39.54% | 40.14% | 41.07% | 41.94% | 42.69% | 45.93% | 48.06% | 53.51% | 55.06% | 58.35% | 55.09% | ||||||
| Broadcom Inc. | 38.38% | 33.43% | 31.27% | 28.45% | 25.84% | 18.56% | 14.43% | 8.71% | 7.76% | 14.68% | 16.55% | 58.70% | 63.03% | 62.20% | 54.90% | 50.62% | 48.50% | 42.58% | 34.09% | ||||||
| Intel Corp. | — | -12.90% | -2.85% | -0.23% | 0.19% | -20.95% | -19.24% | -18.89% | -16.04% | 0.85% | 3.84% | 1.60% | -1.61% | -0.91% | -2.91% | 7.90% | 13.32% | 18.88% | 23.87% | ||||||
| KLA Corp. | 80.11% | 83.39% | 84.99% | 86.56% | 92.27% | 89.51% | 83.33% | 82.00% | 84.34% | 88.92% | 103.76% | 116.01% | 130.76% | 136.01% | 156.01% | 237.04% | 77.19% | 73.76% | 70.61% | ||||||
| Lam Research Corp. | 63.38% | 61.24% | 57.01% | 54.33% | 48.98% | 48.75% | 47.89% | 44.82% | 45.00% | 42.06% | 49.36% | 54.94% | 58.49% | 61.71% | 65.45% | 73.35% | 75.35% | 70.88% | 73.28% | ||||||
| Marvell Technology Inc. | 17.60% | -0.77% | -3.69% | -6.59% | -11.05% | -6.80% | -6.77% | -6.29% | -3.65% | -2.46% | -1.08% | -1.05% | -0.91% | -1.40% | -3.22% | -2.68% | -2.62% | -2.52% | -1.70% | ||||||
| Micron Technology Inc. | 50.11% | 33.28% | 20.25% | 15.76% | 12.27% | 9.61% | 8.30% | 1.72% | -3.48% | -8.59% | -16.02% | -13.22% | -6.41% | 3.41% | 12.55% | 17.41% | 20.12% | 18.86% | 16.04% | ||||||
| NVIDIA Corp. | 83.43% | 86.48% | 91.57% | 91.87% | 95.71% | 91.15% | 86.68% | 69.24% | 56.78% | 37.54% | 19.55% | 19.76% | 27.90% | 32.45% | 35.93% | 36.65% | 34.49% | 33.48% | 28.37% | ||||||
| Qualcomm Inc. | 33.48% | 36.38% | 23.25% | 26.13% | 42.55% | 39.82% | 39.27% | 38.60% | 35.31% | 34.27% | 33.67% | 33.51% | 41.68% | 53.52% | 62.58% | 71.81% | 80.15% | 83.73% | 88.12% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
ROE = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ Stockholders’ equity
= 100 × (2,425 + 1,980 + 1,545 + 1,163)
÷ 19,185 = 37.08%
2 Click competitor name to see calculations.
The return on equity (ROE) exhibits a pronounced cyclical trajectory over the analyzed period. After maintaining peak levels exceeding 60% throughout 2022, the ratio entered a period of sustained contraction through 2023 and 2024, reaching a trough before initiating a recovery trend that continued through September 2026.
- Return on Equity Trajectory
- A peak ROE of 61.52% was recorded in September 2022. This was followed by a steady decline over several quarters, reaching a minimum of 28.39% in September 2024. From early 2025, the ratio began a consistent ascent, closing the period at 37.08% in September 2026.
- Impact of Net Income Volatility
- Net income served as a primary driver for the fluctuations in ROE. Quarterly earnings decreased from 2,295 million USD in September 2022 to a low of 1,105 million USD in March 2024. The subsequent recovery in the ROE is closely aligned with the resurgence of net income, which grew significantly to reach 2,425 million USD by September 2026.
- Stockholders' Equity Expansion
- The equity base expanded from 14,017 million USD in March 2022 to 19,185 million USD by September 2026. This general increase in the denominator contributed to the dilution of the ROE, particularly during the 2023-2024 period when the equity base grew while net income simultaneously declined.
- Recovery Phase Analysis
- Starting in March 2025, a positive correlation between rising net income and improving ROE is evident. The ROE increased from 29.70% to 37.08% over the final seven quarters, indicating that the growth in profitability began to outpace the expansion of the stockholders' equity base.
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Return on Assets (ROA)
Texas Instruments Inc., ROA calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income | 2,425) | 1,980) | 1,545) | 1,163) | 1,364) | 1,295) | 1,179) | 1,205) | 1,362) | 1,127) | 1,105) | 1,371) | 1,709) | 1,722) | 1,708) | 1,962) | 2,295) | 2,291) | 2,201) | ||||||
| Total assets | 36,839) | 35,882) | 34,393) | 34,585) | 35,004) | 34,933) | 33,757) | 35,509) | 35,321) | 35,048) | 34,885) | 32,348) | 31,638) | 30,939) | 29,220) | 27,207) | 26,057) | 24,723) | 25,276) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 19.31% | 16.87% | 15.60% | 14.46% | 14.41% | 14.43% | 14.44% | 13.51% | 14.06% | 15.16% | 16.93% | 20.12% | 22.44% | 24.85% | 28.25% | 32.16% | 34.25% | 34.69% | 32.51% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 7.62% | 6.29% | 5.64% | 4.30% | 3.79% | 3.11% | 2.37% | 2.62% | 1.99% | 1.64% | 1.26% | 0.31% | -0.04% | 0.58% | 1.95% | 3.35% | 4.64% | 5.07% | ||||||
| Analog Devices Inc. | 8.54% | 6.91% | 5.64% | 4.72% | 4.06% | 3.87% | 3.26% | 3.39% | 3.41% | 4.38% | 5.82% | 6.79% | 7.60% | 7.32% | 6.83% | 5.46% | 3.75% | 3.23% | 2.50% | ||||||
| Applied Materials Inc. | 21.29% | 21.12% | 20.82% | 19.28% | 19.97% | 20.09% | 19.03% | 20.86% | 22.14% | 22.86% | 22.69% | 22.31% | 21.19% | 22.31% | 23.07% | 24.41% | 25.40% | 26.54% | 25.76% | ||||||
| Broadcom Inc. | 20.34% | 16.36% | 14.70% | 13.52% | 11.43% | 7.85% | 6.09% | 3.56% | 3.03% | 5.86% | 6.54% | 19.33% | 19.44% | 19.10% | 17.54% | 15.69% | 14.20% | 12.45% | 10.69% | ||||||
| Intel Corp. | — | -5.58% | -1.55% | -0.13% | 0.10% | -10.65% | -9.99% | -9.55% | -8.25% | 0.47% | 2.11% | 0.88% | -0.87% | -0.50% | -1.54% | 4.40% | 7.61% | 11.21% | 13.96% | ||||||
| KLA Corp. | 27.68% | 27.26% | 25.96% | 25.28% | 24.33% | 21.39% | 18.92% | 17.90% | 17.45% | 18.95% | 21.95% | 24.07% | 25.64% | 25.79% | 24.99% | 26.37% | 26.21% | 25.57% | 24.46% | ||||||
| Lam Research Corp. | 32.26% | 29.05% | 26.53% | 25.10% | 23.33% | 21.64% | 20.77% | 20.42% | 19.75% | 18.41% | 21.43% | 24.02% | 25.55% | 26.68% | 25.91% | 26.78% | 27.37% | 27.51% | 27.40% | ||||||
| Marvell Technology Inc. | 11.47% | -0.50% | -2.45% | -4.38% | -7.50% | -4.76% | -4.78% | -4.40% | -2.56% | -1.74% | -0.75% | -0.73% | -0.63% | -0.98% | -2.26% | -1.90% | -1.87% | -1.78% | -1.19% | ||||||
| Micron Technology Inc. | 37.63% | 23.75% | 13.85% | 10.31% | 7.94% | 6.40% | 5.43% | 1.12% | -2.32% | -5.73% | -10.78% | -9.08% | -4.43% | 2.42% | 9.11% | 13.11% | 15.18% | 14.17% | 12.02% | ||||||
| NVIDIA Corp. | 61.56% | 61.53% | 61.29% | 65.30% | 65.69% | 62.20% | 55.27% | 45.28% | 34.88% | 20.84% | 10.78% | 10.61% | 14.71% | 17.80% | 20.92% | 22.07% | 20.20% | 18.32% | 17.30% | ||||||
| Qualcomm Inc. | 16.14% | 17.37% | 10.12% | 11.05% | 21.10% | 19.94% | 18.99% | 18.39% | 16.52% | 15.77% | 14.89% | 14.17% | 17.58% | 21.80% | 23.54% | 26.39% | 27.35% | 25.19% | 23.32% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
ROA = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ Total assets
= 100 × (2,425 + 1,980 + 1,545 + 1,163)
÷ 36,839 = 19.31%
2 Click competitor name to see calculations.
The analyzed period reveals a significant cyclical shift in asset efficiency, characterized by an initial peak, a prolonged contraction, and a subsequent recovery phase. The overall trend indicates a period of capital expansion that initially preceded a recovery in earnings power.
- Return on Assets (ROA) Trajectory
- A pronounced downward trend is observed from the first half of 2022 through the end of 2024. The ROA peaked at 34.69% in June 2022 before entering a steady decline, reaching a trough of 13.51% by December 2024. This suggests a substantial reduction in the efficiency with which the company utilized its assets to generate profit during this interval.
- Impact of Asset Expansion and Income Contraction
- The decline in ROA was driven by a divergence between balance sheet growth and bottom-line performance. Total assets grew consistently from 25,276 million USD in March 2022 to a peak of 35,509 million USD in September 2024. Simultaneously, net income experienced a significant contraction, falling from quarterly levels exceeding 2,200 million USD in 2022 to a low of 1,105 million USD in March 2024. The simultaneous increase in the asset base and decrease in earnings resulted in the sharp compression of the ROA.
- Recovery and Stabilization Patterns
- A stabilization phase is evident between March 2025 and December 2025, during which the ROA remained nearly constant at approximately 14.4%. Following this period, a recovery trend emerged, with the ROA ascending to 19.31% by September 2026. This upward movement is primarily attributed to a strong rebound in net income, which climbed to 2,425 million USD by the end of the analyzed period, effectively outpacing the growth in total assets.
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