Is Texas Instruments Incorporated (TXN) stock halal?

Based on our AAOIFI-based screen (data as of 2026-03-31), Texas Instruments Incorporated passes both the business-activity and financial-ratio screens. A pass is dated — ratios move with the share price — and incidental interest income should be purified.

Does Texas Instruments Incorporated pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 5.1% of market cap (limit < 30%) — pass; cash plus interest-bearing securities is 1.9% (limit < 30%) — pass. The impermissible-income ratio (< 5% limit) also passes. Ratios are recomputed as new filings and prices move.

Do I need to purify dividends from Texas Instruments Incorporated?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash, and the standard practice is to donate the proportional share of dividends attributable to that income. Our purification calculator does this math for your holding.

Is Texas Instruments Stock Halal? Texas Instruments Incorporated (TXN) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 5.1% of market cap and cash plus interest-bearing securities 1.9% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. Reviewed 2026-06-14. Published by HalalWallet.

Is Texas Instruments Stock Halal?

Q: Is Texas Instruments Stock Halal?

Halal: Texas Instruments Incorporated (TXN) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 5.1% of market cap and cash plus interest-bearing securities 1.9% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. (Financial data as of 2026-03-31; basis: AAOIFI Shariah standards.)

Q: Do I need to purify dividends from Texas Instruments Incorporated?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash, and the standard practice is to donate the proportional share of dividends attributable to that income. Our purification calculator does this math for your holding.

Texas Instruments Incorporated · TXN · NASDAQ

HalalGenerally permissible

Texas Instruments Incorporated (TXN) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 5.1% of market cap and cash plus interest-bearing securities 1.9% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.

Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14

Our Analysis

Texas Instruments is one of the cleanest large-cap names for halal investors. Its entire business is designing and manufacturing analog and embedded-processing chips — the small, foundational semiconductors inside cars, factory equipment, phones, and appliances. That is a straightforwardly permissible industrial-technology activity with no alcohol, gambling, tobacco, or conventional-finance exposure, which is why every major screener — Zoya, Musaffa, HalalStocks, and HalalSignalz — independently classifies TXN as halal.

The financial ratios are equally comfortable. TI carries very low interest-bearing debt relative to its market value, holds a modest cash position, and reports essentially zero non-compliant interest income (HalalStocks shows 0.00%). That means purification on dividends is negligible in practice, though investors following a strict methodology can still donate any small reported share.

The practical takeaway: TXN passes both the business and financial screens with a wide margin. The only routine maintenance is re-checking the debt and cash ratios after new quarterly filings, since those move with the share price, and avoiding margin or options on the position.

Business Activity Screen

Pass

Texas Instruments designs, manufactures, and sells analog and embedded-processing semiconductors used in industrial, automotive, personal-electronics, and communications equipment. Per its 10-K, revenue comes almost entirely from chip sales across its Analog and Embedded Processing segments — a fully permissible industrial-technology activity.

No alcohol, gambling, tobacco, conventional-finance, or other prohibited revenue lines are disclosed. Interest income on TI's corporate cash and investments is negligible — HalalStocks.co.uk reports 0.00% non-compliant interest income and our screen shows it rounding to ~0%, far under the 5% AAOIFI threshold. Any small dividend purification is minimal in practice.

Financial Ratio Screen

Screen	Value	AAOIFI limit	Result
Interest-bearing debt / market cap	5.1%	< 30%	Pass
Cash + interest-bearing securities / market cap	1.9%	< 30%	Pass
Impermissible income / total revenueOther income & expense (OI&E), net was $230M on $17.68B revenue (FY2025 10-K) = 1.3% — a conservative upper bound (OI&E is predominantly interest income); well under 5%.	1.3%	< 5%	Pass

Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.

This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →

How Texas Instruments screens across Shariah standards

The standards disagree on this company. It passes some Shariah screens and fails others — which is exactly why you may see a different answer in different apps. Our headline verdict uses AAOIFI, the strictest and most widely cited mainstream standard.

Standard	Debt	Cash & interest securities	Limit / basis	Result
AAOIFI (our standard)	5.1%	1.9%	< 30% of market cap	Pass
Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison.	5.1%	1.9%	< 33% of market cap	Pass
MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce.	40.9%	14.8%	< 33.33% of total assets	Fail

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →

These companies pass under some mainstream standards and fail under others — the same pattern as this verdict. That is why two apps can show different answers.

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