Analog Devices (ADI) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Indi ...

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WILMINGTON, Mass., May 23, 2025 /PRNewswire/ -- Analog Devices, Inc. (Nasdaq: ADI) today announced that the Company's Executive Vice President & Chief Financial Officer, Richard Puccio, will discuss business topics and trends at the Bernstein 41st Annual Strategic Decisions Conference, taking place at New York Marriott Marquis Hotel, located in New York, New York, Thursday, May 29, 2025 at 11:00 a.m. EST.The webcast for the conference may be accessed live via the Investor Relations section of Analog Devices ...

Semiconductor company Analog Devices (ADI -4.72%) published its latest quarterly earnings report Thursday morning, but despite its estimates-beating performance, investors sold out of the stock.They left it with a more than 4% drop in share price on the day, on concerns that a lingering tariff war could badly affect its fundamentals. That decline compared unfavorably to the S&P 500's (^GSPC -0.04%) marginal slide.Powerful double-digit growthFor its fiscal second quarter of 2025, Analog Devices' revenue came ...

Analog Devices, Inc. (ADI -4.53%) reported Q2 FY2025 earnings on May 22, 2025, with revenue of $2.64 billion—up 22% year-over-year and 9% sequentially—and non-GAAP EPS of $1.85, surpassing the high end of guidance. The company demonstrated significant sequential growth across industrial, automotive, and communications end markets, while announcing guidance for Q3 FY2025 revenue of $2.75 billion (+/- $100 million) and maintaining an expectation of advancing toward long-term margin and free cash flow targets. ...

Analog Devices (ADI) reported second-quarter fiscal 2025 non-GAAP earnings of $1.85 per share, which beat the Zacks Consensus Estimate by 9.5%. This company reported earnings of $1.40 per share in the year-ago period.Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6%.Analog Devices’ second-quarter fiscal 2025 revenues of $2.64 billion beat the Zacks Consensus Estimate by 5.51%. The top line increased from the year-ago quarter’s $2 ...

Analog Devices (ADI) Q2 2025 Earnings Call May 22, 2025 10:00 AM ET Company Participants Richard Puccio - Executive VP & CFOMichael Lucarelli - VP - IR and Controller for Data Center & Energy BusinessesJeffrey Ambrosi - Director - IRVincent Roche - CEO & Chair of the Board of DirectorsJoseph Moore - Managing DirectorVivek Arya - Managing DirectorHarlan Sur - Executive Director - Equity ResearchTore Svanberg - Managing DirectorChris Caso - Managing DirectorJoshua Buchalter - Director - Equity ResearchBlayne ...

Financial Data and Key Metrics Changes - Second quarter revenue reached $2.64 billion, exceeding expectations, with a 9% sequential increase and a 22% year-over-year growth [16] - Gross margin was 69.4%, up 60 basis points sequentially, driven by higher utilization [18] - Operating margin was 41.2%, with EPS at $1.85, reflecting a 32% year-over-year increase [19] - Free cash flow over the trailing twelve months was $3.3 billion, or 34% of revenue [21] Business Line Data and Key Metrics Changes - Industrial segment accounted for 44% of revenue, up 8% sequentially and 17% year-over-year [16] - Automotive segment represented 32% of revenue, with a 16% sequential increase and 24% year-over-year growth, driven by strong demand in China [17] - Communications segment made up 12% of revenue, increasing 5% sequentially and 32% year-over-year, with strong growth in wireline and data center [18] - Consumer segment also represented 12% of revenue, remaining flat sequentially but up 30% year-over-year [18] Market Data and Key Metrics Changes - Strong growth observed in aerospace and defense and automated test equipment (ATE) within the industrial market [16] - Automotive demand in North America and Europe increased by approximately 20% sequentially due to tariff-related pull-in activity [28] - Overall bookings grew sequentially across all end markets and geographies, with a backlog entering Q3 higher than the previous quarter [22] Company Strategy and Development Direction - Company is focusing on five key megatrends: autonomy, proactive healthcare, energy transition and sustainability, immersive experience, and AI-driven computing and connectivity [10] - Significant investments in capital expenditures to enhance and scale hybrid manufacturing models, expanding capacity in the US and Europe [9] - Emphasis on delivering complete solutions to customers, leveraging extensive product portfolio and technological expertise [11] Management's Comments on Operating Environment and Future Outlook - Management believes revenue bottomed in 2024 and is returning to growth in fiscal 2025, supported by favorable demand trends [8] - The company is maintaining a strategy of balancing lean channel inventories with higher levels of inventory on the balance sheet [20] - Management expects third quarter revenue to be approximately $2.75 billion, with industrial and consumer segments leading growth [22] Other Important Information - The company celebrated its 60th anniversary, a milestone achieved by fewer than 1% of public companies [14] - Management highlighted the importance of adapting to business transitions early and focusing capital investments to maximize value [9] Q&A Session Summary Question: What is driving the strong growth in automotive? - Management noted that Q2 was stronger than expected, with bookings and turns significantly higher, aided by pull-in activity related to tariffs [28] Question: How much is the company under shipping demand currently? - Management estimated that they are shipping approximately 10% below end consumption, with expectations to normalize in Q3 [36] Question: What is the outlook for industrial automation? - Management reported continued growth in industrial automation, with positive book-to-bill ratios across all subsectors [41] Question: How is the company addressing supply chain and foundry diversity? - The company has increased internal capacity significantly and is also partnering with external foundries to ensure flexibility and resilience [92]

Analog Devices (ADI) came out with quarterly earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.47%. A quarter ago, it was expected that this semiconductor maker would post earnings of $1.54 per share when it actually produced earnings of $1.63, delivering a surprise of 5.84%.Over the last four quarters, the ...

Financial Performance - Revenue for the three months ended May 3, 2025, increased by 22% to $2,640,068, compared to $2,159,039 for the same period in the prior year[62] - Net income for the three months ended May 3, 2025, rose by 89% to $569,770, up from $302,242 in the same period last year[62] - Total revenue for the six months ended May 3, 2025, was $5,063,242, an 8% increase from $4,671,743 in the same period last year[62] - Net income increased by $267.5 million (89%) in the three months ended May 3, 2025, and by $196.1 million (26%) in the six months ended May 3, 2025, driven by increased operating income[80][81] Margins and Expenses - Gross margin percentage improved to 61.0% for the three months ended May 3, 2025, compared to 54.7% for the same period in the prior year[72] - Gross margin for the six months ended May 3, 2025, was 60.1%, up from 56.8% in the same period last year[72] - Research and Development (R&D) expenses increased by 25% to $441,837 for the three months ended May 3, 2025, compared to $354,862 in the same period last year[73] - Selling, Marketing, General and Administrative (SMG&A) expenses rose by 24% to $302,669 for the three months ended May 3, 2025, compared to $244,129 in the same period last year[74] - Amortization expenses decreased by $1.5 million (1%) in the three months ended May 3, 2025, compared to the same period in the prior year, and by $4.4 million (1%) in the six months ended May 3, 2025[75] - Special charges, net decreased by $4.2 million (71%) in the three months ended May 3, 2025, but increased by $43.5 million (197%) in the six months ended May 3, 2025, primarily due to Global Repositioning Actions[76] - Total nonoperating expense decreased by $9.5 million in the three months ended May 3, 2025, and by $26.3 million in the six months ended May 3, 2025, mainly due to higher interest income and lower interest expense[77] Cash and Debt - Cash and cash equivalents totaled $2.4 billion as of May 3, 2025, with approximately $1.1 billion held in the United States[82] - Net cash provided by operating activities was $1.9 billion for the six months ended May 3, 2025, representing 38% of revenue[84] - Total debt amounted to $7.3 billion as of May 3, 2025, with various notes maturing between 2026 and 2054[94] - The company has $11.4 billion remaining available for stock repurchases under its authorized program of $26.7 billion as of May 3, 2025[98] Assets and Liabilities - Accounts receivable increased by $46.0 million (3%) to $1.4 billion, and inventory increased by $77.2 million (5%) to $1.5 billion as of May 3, 2025[89][90] - Current liabilities decreased to $2.7 billion as of May 3, 2025, primarily due to the repayment of approximately $400.0 million of debt[91] Future Outlook and Management - The company expects to continue developing innovative technologies and processes for new products to maintain product leadership[73] - Capital expenditures for fiscal 2025 are expected to be between approximately 4% and 6% of fiscal 2025 revenue, with net additions to property, plant, and equipment at $239.2 million in the first six months[99] - A cash dividend of $0.99 per outstanding share was declared, totaling approximately $491.3 million, to be paid on June 18, 2025[100] - Management believes that the impact of recently issued accounting standards will not have a material impact on future financial condition and results of operations[101] - There were no material changes in market risks related to financial instruments during the six-month period ended May 3, 2025, compared to the previous annual report[103]