The development of magnetic anisotropy induced by cold rolling of an alloy containing 90% Co—10% Fe was studied with the aid of torque curves and x‐ray texture data. In the annealed condition the texture is (31¯1¯) [112], and the torque dependence of the magnetization shows an easy direction both parallel and transverse to the rolling direction. As rolling proceeds to 98% reduction, the torque curves develop a sin2&thgr; dependence with the easy direction of magnetization transverse to the rolling direction. The torque maximum associated with the transverse direction, which is a measure of the stability of the rolling‐induced easy axis, develops linearly with true strain. The intensity of the x‐ray reflection from {110} planes lying in the plane of the sheet, which is a measure of the development of the rolled testure, also increases in a linear manner with true strain. At 98% or greater reduction, the texture becomes (11¯0) [335]. Theoretical torque curves computed on the basis of texture and the magnetocrystalline anisotropy energy give values for the first anisotropy constantK1, which compare favorably with the measured single‐crystalK1values, showing that the rolling‐induced anisotropy in this alloy is due principally to magnetocrystalline anisotropy energy.