TI(US:TXN) Zheng Quan Shi Bao·2025-10-22 11:32Core 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 [2][3]. 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 [2]. - 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 [2]. - Revenue from analog chips grew 16% year-over-year to $3.729 billion, while embedded processing chip revenue increased 9% to $709 million, with a slight decline in operating profit for the latter [2]. Q4 Outlook - The company anticipates Q4 revenue between $4.22 billion and $4.58 billion, with a midpoint below Wall Street's average expectation of approximately $4.5 billion [2]. - Expected EPS for Q4 is around $1.26, with a range of $1.13 to $1.39, compared to the Wall Street average expectation of $1.39 [2]. Market Sentiment and Analyst Reactions - Following the earnings report, Texas Instruments' stock fell over 8%, marking a significant decline similar to a previous drop of 13% due to a pessimistic forecast [2][3]. - Morgan Stanley lowered its target price for Texas Instruments from $192 to $175, while Barclays maintained a "underweight" rating, citing ongoing weakness in industrial and automotive markets [3]. - Bank of America downgraded Texas Instruments' rating from "neutral" to "underperform" and reduced its target price from $208 to $190, highlighting concerns over demand recovery in the industrial sector due to global tariff uncertainties [4].