TI(US:TXN) Zheng Quan Shi Bao·2025-10-22 10:41Core Viewpoint - Texas Instruments (TXN.US) reported better-than-expected Q3 earnings but provided a pessimistic outlook for Q4, leading to a significant drop in its stock price [1][4]. Financial Performance - Q3 revenue reached $4.742 billion, a 14% year-over-year increase and a 7% quarter-over-quarter increase, surpassing market expectations of $4.65 billion [4]. - Operating profit rose 7% year-over-year to $1.663 billion, while earnings per share (EPS) increased 1% to $1.48, slightly below the expected $1.49 [4]. - Revenue from analog chips grew 16% year-over-year to $3.729 billion, with operating profit up 13% to $1.486 billion [4]. - Embedded processing chip revenue increased 9% year-over-year to $709 million, but operating profit declined 1% to $108 million [4]. Q4 Outlook - The company expects Q4 revenue to be between $4.22 billion and $4.58 billion, with a midpoint below Wall Street's average expectation of approximately $4.5 billion [4]. - Projected EPS for Q4 is around $1.26, with a range of $1.13 to $1.39, compared to Wall Street's average expectation of $1.39 [4]. Market Sentiment - Following the pessimistic guidance, Texas Instruments' stock fell over 8% in after-hours trading, marking a significant decline similar to a previous drop of 13% three months ago due to a similar outlook [4][5]. - The CEO noted a slowdown in the semiconductor market recovery, influenced by broader macroeconomic uncertainties and potential tariff increases [5]. Analyst Reactions - Morgan Stanley lowered Texas Instruments' target price from $192 to $175 following the earnings report [5]. - Barclays maintained a "underweight" rating on Texas Instruments, citing ongoing weakness in the industrial and automotive markets and potential for further downward revisions [5]. - Bank of America downgraded Texas Instruments from "neutral" to "underperform" and reduced its target price from $208 to $190, highlighting concerns over demand recovery in the industrial sector [6].