--- title: "Is Texas Instruments Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/texas-instruments-stock publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: stock ticker: TXN exchange: NASDAQ last_reviewed: 2026-06-14 data_as_of: 2026-03-31 standards_disagree: true authorities_with_position: 3 authority_agreement: unanimous --- # Is Texas Instruments Stock Halal? **Authority consensus:** All 3 halal screening authorities with a published position rate Texas Instruments Incorporated halal. **Verdict: Halal** (Generally 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. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence 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 Result: 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 (AAOIFI) Data as of: 2026-03-31 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 5.1% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 1.9% | < 30% | Pass | | Impermissible income / total revenue | 1.3% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest 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 threshold | 5.1% | 1.9% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 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 < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **Zoya**: Classifies TXN as Shariah-compliant under its AAOIFI-based methodology, reviewed at least quarterly. ([source](https://zoya.finance/stocks/txn)) - **Musaffa**: Classified HALAL as of April 2026 based on AAOIFI business-activity and financial-ratio screens (report source: 2026 Q1). ([source](https://musaffa.com/stock/TXN/)) - **HalalStocks.co.uk**: Rates TXN Halal — 4 of 4 AAOIFI screens passed; debt-to-market-cap 6.2%, cash 2.0%, and 0.00% non-compliant interest income. ([source](https://halalstocks.co.uk/txn)) ## Purification Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures. ## Sources - TXN latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Texas%20Instruments%20Incorporated&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Texas Instruments 10-K filings (SEC EDGAR) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=TXN&type=10-K) - Zoya — TXN Shariah compliance status (https://zoya.finance/stocks/txn) - Musaffa — TXN Shariah status (HALAL) (https://musaffa.com/stock/TXN/) - HalalStocks.co.uk — TXN (Halal, 4/4 screens) (https://halalstocks.co.uk/txn) ## Frequently asked questions ### Is Texas Instruments Incorporated (TXN) stock halal? Yes, under our AAOIFI-based methodology Texas Instruments Incorporated passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-03-31). Check the dated ratio table before investing; ratios move with the share price. ### 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%); cash plus interest-bearing securities is 1.9% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is Texas Instruments Incorporated held in halal ETFs like SPUS or HLAL? Check the scholar/screener positions and sources on this page for current SPUS, HLAL, Zoya, and Musaffa statuses. ### 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; donate the proportional share of dividends attributable to that income. ## Related verdicts - [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal - [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal - [Is AbbVie Stock Halal?](https://www.halalwallet.ca/is-it-halal/abbvie-stock.md) — Halal - [Is Air Products and Chemicals Stock Halal?](https://www.halalwallet.ca/is-it-halal/air-products-and-chemicals-stock.md) — Halal - [Is AppLovin Stock Halal?](https://www.halalwallet.ca/is-it-halal/applovin-stock.md) — Halal - [Is Arista Networks Stock Halal?](https://www.halalwallet.ca/is-it-halal/arista-networks-stock.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md