AnalogWide moat

Texas Instruments (TXN) — moat facet

The moat in one segment: margins back near 46% after profit nearly halved in two years.

Analog is Texas Instruments' main business. It had revenue of $14,006 million in 2025, up 15%, and operating profit of $5,412 million, a margin of 38.6%.1 That was about 79.2% of TI's revenue and 89.9% of its operating profit.2

Analog operating profit ($m)$3,416m2016$4,468m2017$5,109m2018$4,477m2019$4,912m2020$7,393m2021$8,359m2022$5,821m2023$4,608m2024$5,412m2025Texas Instruments Forms 10-K FY2018, FY2020, FY2022, FY2025
Profit fell 45% from 2022 to 2024, to about where it was in 2020.

It has two product lines, Power and Signal Chain. Power chips manage voltage and current in electronic systems; Signal Chain chips sense, condition and convert real-world signals. The filing says the products are used in industrial, automotive, data centre, personal electronics and communications equipment.3 In 2018 the filing described three product lines, Power, Signal Chain and High Volume; the 2025 filing lists two.4

It grew through most of the past decade. Revenue was $8,536 million in 2016, about 5.7% a year to 2025, and peaked at $15,359 million in 2022, when the operating margin was 54.4%.567 The downturn then took revenue down to $12,161 million in 2024, about 20.8%, and operating profit from $8,359 million to $4,608 million, about 44.9%, a margin of 37.9%.8910

Profit fell faster than revenue while TI kept building. Capital expenditures were about $5.1 billion in 2023 and $4.8 billion in 2024, and depreciation rose from $925 million in 2022 to $1,918 million in 2025.111213 In 2025 Analog revenue rose in both product lines about evenly, and operating profit rose on revenue and gross profit, partly offset by higher operating expenses.14

The first half of 2026 was the recovery. Analog revenue was $8,289 million, up about 24.4%, and operating profit $3,630 million, a margin of about 43.8% against 38.0%; in the June quarter the margin was about 45.6%.1516

The verdict is that this segment is the moat: a broad catalogue, made mostly in TI's own fabs and sold mostly direct. The number to watch is its operating margin, about 45.6% in the latest quarter: back above 50% would show the new fabs paying; stuck near 40% would mean the depreciation is outrunning the price.

Moat trajectory: Widening

Operating margin about 45.6% in Q2 2026 against 38.4% a year earlier.

The number that tests this moat
Moat Explorer calc
Analog operating margin, latest quarter
About 45.6% in Q2 2026, from 38.4%

Back above 50% would show the new fabs paying; stuck near 40% would mean depreciation is outrunning price.

How it's calculated: 1,992 / 4,365 against 1,325 / 3,452.
Source: Texas Instruments Form 10-Q, Q2 2026 (Moat Explorer calc) ↗
References
  1. ReportedIt had revenue of $14,006 million in 2025, up 15%, and operating profit of $5,412 million, a margin of 38.6%.
    Texas Instruments Form 10-K FY2025 - segment information 2023-2025 (Analog $13,040M/$12,161M/$14,006M, operating profit $5,821M/$4,608M/$5,412M; Embedded Processing $3,368M/$2,533M/$2,697M, $1,008M/$352M/$304M; Other $1,111M/$947M/$979M, $502M/$505M/$307M including restructuring charges/other of -$124M in 2024 and $117M in 2025); segment commentary; product-line descriptions; capital expenditures $5,071M/$4,820M/$4,550M; depreciation $1,175M/$1,508M/$1,918M — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcThat was about 79.2% of TI's revenue and 89.9% of its operating profit.
    Moat Explorer calculation from Texas Instruments' Forms 10-K FY2018-FY2025 and the Q2 2026 10-Q: shares of revenue and operating profit, segment operating margins, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedThe filing says the products are used in industrial, automotive, data centre, personal electronics and communications equipment.
    Texas Instruments Form 10-K FY2025 - segment information 2023-2025 (Analog $13,040M/$12,161M/$14,006M, operating profit $5,821M/$4,608M/$5,412M; Embedded Processing $3,368M/$2,533M/$2,697M, $1,008M/$352M/$304M; Other $1,111M/$947M/$979M, $502M/$505M/$307M including restructuring charges/other of -$124M in 2024 and $117M in 2025); segment commentary; product-line descriptions; capital expenditures $5,071M/$4,820M/$4,550M; depreciation $1,175M/$1,508M/$1,918M — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedIn 2018 the filing described three product lines, Power, Signal Chain and High Volume; the 2025 filing lists two.
    Texas Instruments Form 10-K FY2018 - segment information 2016-2018 (Analog $8,536M/$9,900M/$10,801M, operating profit $3,416M/$4,468M/$5,109M; Embedded Processing $3,023M/$3,498M/$3,554M; Other $1,811M/$1,563M/$1,429M, operating profit $622M/$472M/$399M; total revenue $13,370M in 2016); Analog product lines Power, Signal Chain and High Volume — FY2016-FY2018 · publ. February 2019 · source ↗
  5. ReportedRevenue was $8,536 million in 2016, about 5.7% a year to 2025, and peaked at $15,359 million in 2022, when the operating margin was 54.4%.
    Texas Instruments Form 10-K FY2018 - segment information 2016-2018 (Analog $8,536M/$9,900M/$10,801M, operating profit $3,416M/$4,468M/$5,109M; Embedded Processing $3,023M/$3,498M/$3,554M; Other $1,811M/$1,563M/$1,429M, operating profit $622M/$472M/$399M; total revenue $13,370M in 2016); Analog product lines Power, Signal Chain and High Volume — FY2016-FY2018 · publ. February 2019 · source ↗
  6. ReportedRevenue was $8,536 million in 2016, about 5.7% a year to 2025, and peaked at $15,359 million in 2022, when the operating margin was 54.4%.
    Texas Instruments Form 10-K FY2022 - segment information 2020-2022 (Analog $10,886M/$14,050M/$15,359M, operating profit $4,912M/$7,393M/$8,359M; Embedded Processing $2,570M/$3,049M/$3,261M, $743M/$1,174M/$1,253M; Other $1,005M/$1,245M/$1,408M); depreciation $733M/$755M/$925M — FY2020-FY2022 · publ. February 2023 · source ↗
  7. Moat Explorer calcRevenue was $8,536 million in 2016, about 5.7% a year to 2025, and peaked at $15,359 million in 2022, when the operating margin was 54.4%.
    Moat Explorer calculation from Texas Instruments' Forms 10-K FY2018-FY2025 and the Q2 2026 10-Q: shares of revenue and operating profit, segment operating margins, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. ReportedThe downturn then took revenue down to $12,161 million in 2024, about 20.8%, and operating profit from $8,359 million to $4,608 million, about 44.9%, a margin of 37.9%.
    Texas Instruments Form 10-K FY2022 - segment information 2020-2022 (Analog $10,886M/$14,050M/$15,359M, operating profit $4,912M/$7,393M/$8,359M; Embedded Processing $2,570M/$3,049M/$3,261M, $743M/$1,174M/$1,253M; Other $1,005M/$1,245M/$1,408M); depreciation $733M/$755M/$925M — FY2020-FY2022 · publ. February 2023 · source ↗
  9. ReportedThe downturn then took revenue down to $12,161 million in 2024, about 20.8%, and operating profit from $8,359 million to $4,608 million, about 44.9%, a margin of 37.9%.
    Texas Instruments Form 10-K FY2025 - segment information 2023-2025 (Analog $13,040M/$12,161M/$14,006M, operating profit $5,821M/$4,608M/$5,412M; Embedded Processing $3,368M/$2,533M/$2,697M, $1,008M/$352M/$304M; Other $1,111M/$947M/$979M, $502M/$505M/$307M including restructuring charges/other of -$124M in 2024 and $117M in 2025); segment commentary; product-line descriptions; capital expenditures $5,071M/$4,820M/$4,550M; depreciation $1,175M/$1,508M/$1,918M — FY2023-FY2025 · publ. February 2026 · source ↗
  10. Moat Explorer calcThe downturn then took revenue down to $12,161 million in 2024, about 20.8%, and operating profit from $8,359 million to $4,608 million, about 44.9%, a margin of 37.9%.
    Moat Explorer calculation from Texas Instruments' Forms 10-K FY2018-FY2025 and the Q2 2026 10-Q: shares of revenue and operating profit, segment operating margins, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  11. ReportedCapital expenditures were about $5.1 billion in 2023 and $4.8 billion in 2024, and depreciation rose from $925 million in 2022 to $1,918 million in 2025.
    Texas Instruments Form 10-K FY2025 - segment information 2023-2025 (Analog $13,040M/$12,161M/$14,006M, operating profit $5,821M/$4,608M/$5,412M; Embedded Processing $3,368M/$2,533M/$2,697M, $1,008M/$352M/$304M; Other $1,111M/$947M/$979M, $502M/$505M/$307M including restructuring charges/other of -$124M in 2024 and $117M in 2025); segment commentary; product-line descriptions; capital expenditures $5,071M/$4,820M/$4,550M; depreciation $1,175M/$1,508M/$1,918M — FY2023-FY2025 · publ. February 2026 · source ↗
  12. ReportedCapital expenditures were about $5.1 billion in 2023 and $4.8 billion in 2024, and depreciation rose from $925 million in 2022 to $1,918 million in 2025.
    Texas Instruments Form 10-K FY2022 - segment information 2020-2022 (Analog $10,886M/$14,050M/$15,359M, operating profit $4,912M/$7,393M/$8,359M; Embedded Processing $2,570M/$3,049M/$3,261M, $743M/$1,174M/$1,253M; Other $1,005M/$1,245M/$1,408M); depreciation $733M/$755M/$925M — FY2020-FY2022 · publ. February 2023 · source ↗
  13. Moat Explorer calcCapital expenditures were about $5.1 billion in 2023 and $4.8 billion in 2024, and depreciation rose from $925 million in 2022 to $1,918 million in 2025.
    Moat Explorer calculation from Texas Instruments' Forms 10-K FY2018-FY2025 and the Q2 2026 10-Q: shares of revenue and operating profit, segment operating margins, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  14. ReportedIn 2025 Analog revenue rose in both product lines about evenly, and operating profit rose on revenue and gross profit, partly offset by higher operating expenses.
    Texas Instruments Form 10-K FY2025 - segment information 2023-2025 (Analog $13,040M/$12,161M/$14,006M, operating profit $5,821M/$4,608M/$5,412M; Embedded Processing $3,368M/$2,533M/$2,697M, $1,008M/$352M/$304M; Other $1,111M/$947M/$979M, $502M/$505M/$307M including restructuring charges/other of -$124M in 2024 and $117M in 2025); segment commentary; product-line descriptions; capital expenditures $5,071M/$4,820M/$4,550M; depreciation $1,175M/$1,508M/$1,918M — FY2023-FY2025 · publ. February 2026 · source ↗
  15. ReportedAnalog revenue was $8,289 million, up about 24.4%, and operating profit $3,630 million, a margin of about 43.8% against 38.0%; in the June quarter the margin was about 45.6%.
    Texas Instruments Form 10-Q for the quarter ended 30 June 2026 - segment information for the quarter and six months (Analog $4,365M/$8,289M against $3,452M/$6,662M, operating profit $1,992M/$3,630M against $1,325M/$2,531M; Embedded Processing $788M/$1,511M against $679M/$1,326M, $168M/$290M against $85M/$125M; Other $310M/$488M against $317M/$529M, $150M including $17M of acquisition charges); Silicon Labs agreement of 4 February 2026 at $231.00 a share in cash, enterprise value about $7.5 billion, delayed-draw term loan — Q2 2026 · publ. July 2026 · source ↗
  16. Moat Explorer calcAnalog revenue was $8,289 million, up about 24.4%, and operating profit $3,630 million, a margin of about 43.8% against 38.0%; in the June quarter the margin was about 45.6%.
    Moat Explorer calculation from Texas Instruments' Forms 10-K FY2018-FY2025 and the Q2 2026 10-Q: shares of revenue and operating profit, segment operating margins, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026