Analog Devices Reports Fiscal Third Quarter 2025 Financial Results

Analog Devices, Inc., a global semiconductor leader, has released its financial results for the fiscal third quarter of 2025, which ended on August 2, 2025. The company reported robust performance across various financial metrics, despite facing geopolitical challenges.

Financial Highlights

For the third quarter of fiscal 2025, Analog Devices reported:

• Revenue of $2.88 billion, marking a 25% year-over-year increase from $2.31 billion in the same quarter of the previous year.
• Gross margin of $1.79 billion, up 36% from $1.31 billion in the prior year, with a gross margin percentage of 62.1% compared to 56.7% last year.
• Operating income of $818 million, a 67% increase from $491 million in the same quarter last year, with an operating margin of 28.4% compared to 21.2% previously.
• Diluted earnings per share (EPS) of $1.04, up 32% from $0.79 in the prior year.
• Adjusted gross margin of $1.99 billion, a 27% increase from $1.57 billion last year, with an adjusted gross margin percentage of 69.2%.
• Adjusted operating income of $1.22 billion, up 28% from $952 million last year, with an adjusted operating margin of 42.2%.
• Adjusted diluted EPS of $2.05, a 30% increase from $1.58 in the prior year.

Business and Operational Highlights

CEO and Chair Vincent Roche highlighted the company's ability to exceed expectations despite geopolitical challenges. The demand for ADI’s products remains strong, driven by the company's focus on cutting-edge innovation and a diverse, resilient business model. CFO Richard Puccio noted continued backlog growth and healthy bookings trends, particularly in the Industrial end market.

Strategic Initiatives and Corporate Developments

During the third quarter, Analog Devices returned $1.6 billion to shareholders through $0.5 billion in dividends and $1.1 billion in share repurchases. The company also reported operating cash flow of $4.2 billion and free cash flow of $3.7 billion on a trailing twelve-month basis, representing 40% and 35% of revenue, respectively.

Management's Perspective

CEO Vincent Roche emphasized the company's strong performance despite market uncertainties, attributing success to ADI’s innovative approach and robust business model. CFO Richard Puccio expressed confidence in the company's position to finish fiscal 2025 strongly, citing favorable third-quarter results and a positive outlook for the fourth quarter.

Future Outlook

For the fourth quarter of fiscal 2025, Analog Devices forecasts revenue of $3.0 billion, +/- $100 million. The company expects a reported operating margin of approximately 30.5%, +/-150 bps, and an adjusted operating margin of approximately 43.5%, +/-100 bps. Reported EPS is projected to be $1.53, +/-$0.10, and adjusted EPS is expected to be $2.22, +/-$0.10.

SEC Filing: ANALOG DEVICES INC [ ADI ] - 8-K - Aug. 20, 2025