A：Texas Instruments' third quarter revenue was about as expected at $4.7 billion, with an increase of Ed sequentially and year over year. Analog and embedded segments both grew year over year and sequentially. The revenue growth was attributed to the industrial, automotive, personal electronics, enterprise systems, and communications equipment markets.

A：In the third quarter, the industrial market increased about Ed year on year and was up low single digit sequentially. The automotive market grew upper single digits year on year and around 10% sequentially. The personal electronics market grew low single digits year on year and upper single digits sequentially. Enterprise systems grew about 30% year on year and grew about 20% sequentially. Lastly, the communications equipment market grew about Ed year on year and was up about Ed sequentially.

A：The balance sheet remains strong with $55 billion of cash and short-term investments at the end of the third quarter, and total debt outstanding of $14 billion with a weighted average coupon of Ly. The company paid $1.2 billion in dividends and purchased $190 million of its stock during the quarter. Additionally, the company announced an increase in the dividend by Ed, marking its script consecutive year of dividend increases.

A：At the end of the quarter, Texas Instruments' inventory was $4.8 billion, up $17 million from the prior quarter, and days sales in inventory were 215, down 10 days sequentially.

A：For the fourth quarter, Texas Instruments expects revenue in the range of Ed Ed to $4.58 billion and earnings per share to be in the range of 1 dollar 13 to 1 dollar 39.

A：The turns portion of the business is expected to follow a kind of a cyclical recovery pattern similar to what was seen in the third quarter.

A：The company is very pleased with its current inventory position, which is managed to support customers with short lead times and high customer satisfaction. In the fourth quarter, the inventory levels are being adjusted down, having already been reduced in the third quarter, to align with lower revenue, higher depreciation, and to maintain the desired inventory levels.

A：The loadings are being adjusted down into the fourth quarter to manage the lower revenue, higher depreciation, and to maintain the targeted inventory levels.

A：The company is winding down operations in old fabs in Sherman and Dallas, which have started the last wafers this month. This is expected to reduce costs related to these facilities through the first half of 2026. Restructuring costs are being taken on in the third quarter, and efficiency gains are expected, with some areas not generating the expected long-term returns. Additionally, the company is consolidating some sites, and these changes are expected to affect operational expenses in the next few quarters.

A：The company expects operational expenses (Opex) to be about flat to third quarter levels, with benefits from restructuring costs starting to be realized. These benefits are expected to be present in both core and selling expenses.

A：The company reported low single-digit sequential growth for the industrial market and high single-digit growth for the automotive market. This represents a change from the previous guidance and the intra-quarter results, with industrial growth being better than expected and automotive slowing down. However, the company had previously indicated that the second quarter was very strong for industrial and a transition from second to third quarter typically shows down, which is in line with historical patterns.

A：The company's assumption for the year was a low single-digit decline in pricing. As of the current status, this assumption is being met with prices trending towards a low single-digit price reduction for the year.

A：There have been no significant changes in lead times across the portfolio. They remain consistent with the quarter prior and the company is happy with the current lead time position, which has been maintained without much change on a sequential basis.

A：The impact of fixed cost reductions from Inf FA closures in the first half should be considered in light of the decrease in revenue, leading to an increase in depreciation and subsequent effect on gross margins.

A：The company manages the business with a long-term owner mindset, aiming to grow free cash flow per share over time. Free cash flow is up 65% from last year and is expected to accelerate and grow faster next year.

A：The anticipated sequential change in Q1 is expected to be down slightly compared to pre-Covid levels, typically in the high single digits, although post-Covid seasonal changes have been inconsistent.

A：The Q4 guidance is considered roughly seasonal, reflecting a moderate pace of recovery, low customer inventories, and a depletion process that has passed, leading to real-time inventory replenishment.

A：Yes, it is not unusual for Q1 revenue to typically be down just slightly sequentially compared to Q4, according to historical data.

A：For this year, the depreciation guidance remains at 1.82 billion, which can be back into the fourth quarter as explained earlier. For next year, the guidance is 2.3% to 2.7 billion, with a lower end of the range expected. Depreciation will continue to be forecasted one quarter at a time based on revenue and demand.

A：The strategy for inventory levels is to align them with the reduced loading, which is expected to result in a good position for the level of inventory required and preparations for the first half of next year. The company is also focusing on executing on expansion plans and aims to achieve free cash flow growth and meet the 2026 goal based on free cash flow, not on GPM.

A：When considering Opex, it should not include restructuring charges, which are treated as a separate line item. Excluding these charges, regular Opex is expected to be above flat in the third and fourth quarters. The company has a disciplined process of allocating NSG A to strengthen competitive advantages and has plans for future growth, though specific expectations for revenue growth were not provided.

A：The speaker believes there is a high opportunity to expand the portfolio in the industrial automotive data center market and plans to continue growing the portfolio in these script areas due to their long-term growth potential.

A：In the third quarter, the industrial and China business saw a return to normal after a pull-in in activity, with a year-over-year growth of about 40%. The speaker expects this trend to continue into the fourth quarter, despite not seeing a repeat of the same level of pull-forward.

A：The outlook for CapEx next year is likely to be at the lower end of the 20 to 26 billion framework provided at the beginning of the year. The probability of it being lower than 26 billion is higher. The actual CapEx will depend on the market recovery, which has been moderate so far, with customers hesitant due to uncertainty in final rules and tariffs. The company is prepared to grow quickly if the market demands it.

A：Since the last earnings call, the view on the pace of recovery has changed. The company had previously been more optimistic about a stronger recovery following a rapid start in the first half of the quarter. However, it became clear that the recovery was not as strong as anticipated and was instead moderate, with the market still below the trend line.

A：According to the speaker, the hesitancy among industrial customers to invest in new factories stems from a lack of clarity on final rules, especially regarding tariffs. This uncertainty is causing customers to be hesitant about where to locate their factories.

A：The speaker describes secular growth as continuing, which allows the market to recover to previous levels. The data center sector is experiencing strong investment and growth, with revenue increasing more than 50% year-to-date, which is a significant area of strong customer investment and where the company wants to further invest.

A：The reduction in wafer starts and utilization is a result of lower revenue expectations, which necessitates moderation to maintain inventory levels. The duration at which loadings will be kept at a lower level and the criteria for increasing these loadings again will depend on future revenue performance over the next six to 12 months.