Arm (ARM) vs Texas Instruments (TXN)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 7, 2026.
Summary
Arm (ARM) has outperformed Texas Instruments (TXN) over the past year, gaining 86.9% versus a gain of 63.2%. Arm is the larger company by market cap ($314.39 billion vs $263.91 billion), about 1.2 times the size. On valuation, Texas Instruments trades at a lower forward P/E (27.1x vs 96.1x for Arm).
Texas Instruments pays a dividend yielding 1.94%, while Arm does not currently pay one. Texas Instruments converts more of its revenue into profit, with a net margin of 28.3% versus 18.4%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | ARM | TXN |
|---|---|---|
| Share price | $294.37 | $288.98 |
| Market cap | $314.39B | $263.91B |
| 1-day change | -2.71% | -2.78% |
| YTD return | +172.40% | +66.57% |
| 1-year return | +86.86% | +63.22% |
| 5-year return | — | +48.61% |
| P/E ratio (TTM) | 303.47 | 43.98 |
| Forward P/E | 96.11 | 27.15 |
| EPS (TTM) | $0.97 | $6.57 |
| Dividend yield | 0.00% | 1.94% |
| Annual dividend | $0.00 | $5.62 |
| Revenue (latest FY) | $4.92B | $17.68B |
| Revenue growth (YoY) | +22.79% | +13.05% |
| Net income (latest FY) | $904.00M | $5.00B |
| Gross margin | 97.54% | 57.02% |
| Operating margin | 18.29% | 34.06% |
| Net margin | 18.37% | 28.28% |
| 52-week high | $452.70 | $334.03 |
| 52-week low | $100.02 | $152.73 |
| Distance from 52-week high | -34.97% | -13.49% |
| Analyst consensus | buy | buy |
| Avg. price target upside | -1.24% | +12.36% |
| Average volume | 5.25M | 6.39M |
| Shares outstanding | 1.07B | 913.25M |
| Employees | 9,584 | 33,000 |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- ARM has outperformed TXN by 23.6 percentage points over the past year.
- Arm trades at a higher earnings multiple (303.5x vs 44.0x trailing P/E).
- Texas Instruments offers a meaningfully higher dividend yield (1.94% vs 0.00%).
- Texas Instruments is more profitable, keeping 28.3 cents of every revenue dollar as net income versus 18.4 cents for Arm.
- Arm grew revenue faster in its latest fiscal year (+22.79% vs +13.05%).
About Arm
ARM stock →Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software.
Technology · Semiconductors · 9,584 employees
About Texas Instruments
TXN stock →Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments.
Technology · Semiconductors · 33,000 employees
ARM vs TXN FAQ
Which is bigger, Arm or Texas Instruments?
Arm (ARM) is larger, with a market capitalization of $314.39B compared with $263.91B for Texas Instruments (TXN).
Which stock has performed better over the past year, ARM or TXN?
ARM returned +86.86% over the past 12 months, compared with +63.22% for TXN (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, ARM or TXN?
TXN has the lower trailing P/E at 44.0, versus 303.5 for ARM. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Arm or Texas Instruments?
Texas Instruments pays a dividend yielding 1.94%, while Arm does not currently pay a regular dividend.
Are Arm and Texas Instruments in the same industry?
Yes. Both are classified in the Semiconductors industry within the Technology sector.