11:22 AM EDT, 10/22/2025 (MT Newswires) -- Texas Instruments ( TXN ) reported late Tuesday mixed Q3 results and issued Q4 guidance that was labeled as a "surprise" by Morgan Stanley analysts in a Wednesday report.

The company said it expects fiscal Q4 EPS of $1.13 to $1.39 and revenue in the range of $4.22 billion to $4.58 billion. Analysts surveyed by FactSet are expecting EPS of $1.41 and revenue of $4.51 billion.

The analysts said the revenue guidance was $4.4 billion at the midpoint, below Morgan Stanley's $4.55 billion forecast and the $4.51 billion billion FactSet average.

Morgan Stanley said the Q4 guidance "may prove conservative" but that it believes margin pressure will continue.

The analysts said they view Texas Instruments ( TXN ) as a "top tier" analog company yet currently prefer peers Analog Devices ( ADI ) and NXP Semiconductors ( NXPI ) .

Morgan Stanley trimmed its fiscal 2025 and 2026 estimates, lowered its target multiple to reflect weaker earnings power and kept an underweight rating, cutting its price target to $175 from $192.

Texas Instruments ( TXN ) shares were down over 5% in recent Wednesday trading.

Price: 171.62, Change: -9.22, Percent Change: -5.10