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**【CEO Summary Section】**
- **Revenue Performance**: Q3 2025 revenue of $4.7 billion, up 7% sequentially and 14% year-over-year. Analog (+16%), Embedded Processing (+9%), and Other segments (+11%) drove growth. Key end markets: Industrial (+25% YoY), Automotive (+upper single digits YoY), Enterprise Systems (+35% YoY), and Communications Equipment (+45% YoY).
- **Market Environment**: Semiconductor recovery continues at a slower pace due to macroeconomic uncertainty. Customer inventories are low, and TI maintains flexibility with capacity and inventory to support demand across scenarios.
- **Operational Strength**: Inventory days reduced to 215 (down 16 days sequentially), supporting customer service with competitive lead times.

**【CFO Financial Commentary】**
- **Profitability**: Gross profit of $2.7 billion (57% of revenue), operating profit of $1.7 billion (35% of revenue). Net income of $1.4 billion, or $1.48 per share, with a $0.10 EPS reduction due to restructuring charges.
- **Cash Flow**: Free cash flow of $2.4 billion (trailing 12 months). Capital expenditures of $1.2 billion, with $637 million in CHIPS Act incentives. Dividends and buybacks returned $6.6 billion to shareholders.
- **Guidance**: Q4 2025 revenue $4.22–$4.58 billion, EPS $1.13–$1.39. Effective tax rate expected at 13% for Q4 and 13%–14% in 2026.
- **Restructuring**: $85 million restructuring charge for 250mm fabs closure and R&D consolidation, with ongoing OpEx efficiency improvements.

**【Q&A Key Highlights】**
- **Booking Trends**: Q3 bookings were stable throughout the quarter, unlike Q2's volatility. Sequential growth in automotive and enterprise systems offset slower industrial demand.
- **Gross Margin Challenges**: Lower wafer loadings in Q4 to manage inventory, leading to gross margin compression. Cash gross margin (excluding depreciation) near 10-year lows due to high depreciation ($1.8–$2 billion for 2025).
- **China Market**: Q3 saw normalization after Q2 pull-in activity. Industrial demand in China grew 40% YoY but remained stable sequentially.
- **CapEx Outlook**: 2026 CapEx expected at lower end of $20–$26 billion range, aligning with moderate market recovery and inventory discipline.
- **Data Center Growth**: Data center-related revenue up >50% YoY, with plans to break out as a standalone market in Q1 2026.

**【Free Cash Flow Focus】**
- TI prioritizes free cash flow per share growth, with trailing 12-month free cash flow up 65% YoY. 2026 framework emphasizes disciplined capital allocation and long-term value creation.

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