TXNNEUTRAL

TXN Return on Equity (ROE) Analysis

35.2%

Higher than 67% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity — a 35.2% ROE means TXN earns $0.352 for every $1 of equity invested.

Sector Performance

67th percentile

TXN

35.2%

Sector Median

33.8%

Sector Avg

36.1%

Prior Period

32.3%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity — a 35.2% ROE means TXN earns $0.352 for every $1 of equity invested.

This sits above the sector median of 29.5%, placing TXN in the 80th percentile among technology peers. The year-over-year change is not available, but quarter-over-quarter ROE rose by +9.0%, from 32.3% to the current 35.2%. Since the 8-quarter trend direction is not available, you cannot judge whether this is a lasting improvement or a single-quarter jump. With ROE well above the sector median and a recent quarterly gain, the risk of weak capital efficiency looks low, though the lack of longer trend data limits the opportunity to project forward. This metric supports the overall NEUTRAL verdict: a strong current return on equity is positive, but it alone does not justify an upgrade without a confirmed multi-quarter pattern.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TXN?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does TXN's Return on Equity (ROE) compare to its sector?

TXN's Return on Equity (ROE) of 35.2% compares to a TECHNOLOGY sector median of 33.8%, placing it in the 67th percentile.

Who are TXN's closest peers by Return on Equity (ROE)?

The closest TECHNOLOGY peers by Return on Equity (ROE) include: QCOM (33.8%), CSCO (27.3%), NOW (14.2%), LRCX (65.1%), INTC (-10.7%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.