TXNNEUTRAL

TXN Gross Margin Analysis

61.4%

Higher than 60% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so 61.4% means TXN keeps over sixty cents per dollar of sales before other expenses.

Sector Performance

60th percentile

TXN

61.4%

Sector Median

57.3%

Sector Avg

56.5%

Prior Period

58.0%(Jul 2026)

↑ Improving

📊

Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so 61.4% means TXN keeps over sixty cents per dollar of sales before other expenses.

This is above the technology sector median of 57.2%, placing TXN in the 67th percentile of sector peers. The year-over-year change is not available and the 8-quarter trend direction is not available, but the quarter-over-quarter change is +5.9%, with historical values of 61.4% and 58.0%. A level above the sector median combined with a recent quarter-over-quarter rise suggests improving cost efficiency or pricing power. For investment risk, this reduces concern about margin pressure, though the missing longer-term trend limits confidence in durability. This metric supports the overall NEUTRAL verdict because the strong margin is a positive factor, but the limited trend data

Frequently Asked Questions

What does the Gross Margin tell investors about TXN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does TXN's Gross Margin compare to its sector?

TXN's Gross Margin of 61.4% compares to a TECHNOLOGY sector median of 57.3%, placing it in the 60th percentile.

Who are TXN's closest peers by Gross Margin?

The closest TECHNOLOGY peers by Gross Margin include: KLAC (61.4%), QCOM (53.1%), LRCX (51.7%), NOW (70.7%), INTC (40.4%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.