Core Viewpoint - Analog Devices, Inc. (ADI) has reported strong financial results, indicating a robust recovery in demand for analog chips, particularly driven by electric vehicles and industrial applications, as well as the integration of generative AI into various sectors [1][3][5]. Financial Performance - For Q4, ADI reported total revenue of approximately $3.076 billion, representing a year-over-year growth of 26%, exceeding Wall Street's expectations by about $60 million [2]. - The company's adjusted earnings per share (EPS) for Q4 were $2.26, reflecting a 35% year-over-year increase and surpassing analyst expectations by approximately $0.03 [2]. - For the first quarter of fiscal year 2026, ADI expects revenue to reach $3.1 billion, exceeding the average analyst forecast of $2.98 billion, with an anticipated adjusted EPS of $2.29, higher than the expected $2.18 [1][2]. Market Segments - All end markets showed growth, with electric vehicles and smart driving significantly contributing to revenue increases [2][3]. - Breakdown of Q4 performance by market: - Industrial revenue was approximately $1.43 billion, a 34% year-over-year increase, though slightly below market expectations [2]. - Communication revenue was about $390 million, up 37% year-over-year, slightly above expectations [2]. - Automotive revenue reached approximately $852 million, significantly exceeding expectations and showing a 19% year-over-year growth [2]. - Consumer electronics revenue grew by 7% to $408 million, slightly above market expectations [2]. Industry Outlook - The analog chip industry is experiencing a comprehensive recovery, driven by increasing demand in key markets such as automotive and industrial sectors, alongside the growing integration of AI functionalities in consumer electronics [3][5]. - ADI's CEO highlighted the company's strong performance as a testament to its business model's resilience and commitment to delivering value to shareholders [3]. - Citigroup has expressed a bullish long-term outlook on ADI, rating it as a preferred stock in the semiconductor sector, with a target price of $290 within 12 months [5].

A little over two years ago, I published an article outlining the business model and attractiveness of Analog Devices Inc. ( ADI ). Looking back at my price prediction for the end of 2024, I surprisingly nailed it downI am an electromechanical engineer who has worked in the automotive, IT infrastructure, and medical device industries. My goal is to produce technical breakdowns on company products and share my industry experiences to provide insight on current engineering trends. Providing real world product ...

A little over two years ago, I published an article outlining the business model and attractiveness of Analog Devices Inc. ( ADI ). Looking back at my price prediction for the end of 2024, I surprisingly nailed it downI am an electromechanical engineer who has worked in the automotive, IT infrastructure, and medical device industries. My goal is to produce technical breakdowns on company products and share my industry experiences to provide insight on current engineering trends. Providing real world product ...

Core Insights - The chip maker has reported quarterly earnings that exceeded market expectations [1] Financial Performance - The company achieved better-than-expected quarterly earnings, indicating strong financial performance [1]

Financial Performance - Fourth quarter revenue reached $3.08 billion, representing a 26% year-over-year increase, with growth across all end markets, particularly in Communications and Industrial[4] - Fiscal 2025 revenue totaled $11.0 billion, up 17% compared to fiscal 2024[4] - Revenue for the three months ended November 1, 2025, was $3,076,117, representing a 26% increase from $2,443,205 for the same period last year[25] - The company reported a total of $11,019,707 in revenue for the twelve months ended November 1, 2025, marking a 17% increase from $9,427,157 in the prior year[32] Profitability Metrics - Adjusted diluted earnings per share for fiscal 2025 increased by 22% to $7.79 compared to $6.38 in the previous year[5] - Net income for the three months ended November 1, 2025, was $787,739, compared to $478,072 for the same period last year, reflecting a 64% increase[25] - Operating income for the twelve months ended November 1, 2025, reached $2,932,496, a significant rise from $2,032,798 in the previous year[25] - Adjusted operating income for the twelve months ended November 1, 2025, was $4,622,147, with an adjusted operating margin of 41.9%, compared to 40.9% in the previous year[34] Cash Flow and Shareholder Returns - Operating cash flow for fiscal 2025 was $4.8 billion, and free cash flow was $4.3 billion, accounting for 44% and 39% of revenue, respectively[4] - The company returned 96% of free cash flow to shareholders in fiscal 2025, including $2.2 billion in share repurchases and $1.9 billion in dividends[4] - The company achieved free cash flow of $4,278,650 for the trailing twelve months, which is 39% of revenue[35] Margins and Expenses - The adjusted operating margin for fiscal 2025 was 41.9%, an increase of 100 basis points from the previous year[5] - Gross margin for the twelve months ended November 1, 2025, was $6,773,478, up from $5,381,343, indicating a strong year-over-year growth[25] - For the three months ended November 1, 2025, the company reported a gross margin of $1,941,817, representing a gross margin percentage of 63.1%, up from 58.0% in the same period last year[34] - Operating expenses for the three months ended November 1, 2025, were $996,605, accounting for 32.4% of revenue, a decrease from 34.7% in the same period last year[34] Future Outlook - The company forecasts first quarter fiscal 2026 revenue of $3.1 billion, with an expected operating margin of approximately 31.0%[7] - The projected earnings per share for the three months ending January 31, 2026, is $1.60 reported and $2.29 adjusted, reflecting adjustments related to acquisition expenses[37][38] Market Trends and Strategic Focus - The company emphasized strong bookings trends in the fourth quarter, particularly in the Industrial and Communications markets[3] - Management remains confident in capitalizing on ongoing cyclical recovery and secular growth opportunities despite macroeconomic uncertainties[3] Research and Development - Research and development expenses for the three months ended November 1, 2025, were $467,021, up from $378,903, indicating a focus on innovation[25] Balance Sheet Highlights - Total current assets increased to $7,108,061 as of November 1, 2025, compared to $5,484,654 a year earlier[27] - Long-term debt rose to $8,145,066 as of November 1, 2025, compared to $6,634,313 the previous year, reflecting increased financing activities[27] Tax and Nonoperating Expenses - The effective tax rate for the twelve months ended November 1, 2025, was 16.4%, compared to 8.0% in the previous year[34] - Nonoperating expense for the three months ended November 1, 2025, was $58,012, compared to $53,064 in the same period last year[34] Capital Expenditures - Capital expenditures for the trailing twelve months were $(533,552), impacting the free cash flow generation[35]

Accessibility StatementSkip Navigation "Healthy bookings trends continued in the fourth quarter with growth in Industrial and notable strength in our Communications market. While macro uncertainty will likely influence the shape of our fiscal 2026, we believe we are well positioned to continue capitalizing on the ongoing cyclical recovery and our secular growth opportunities," said Richard Puccio, CFO. Performance for the Fourth Quarter and Fiscal Year 2025 Results Summary (in millions, except per- share a ...

Market Overview - U.S. stock futures showed slight declines, with Nasdaq 100 down approximately 0.19%, S&P 500 down around 0.10%, and Dow Jones down about 0.13% following a strong performance in the previous session [2] - The S&P 500 climbed 1.55% to close at 6,705.12, the Nasdaq Composite surged 2.69% to settle at 22,872.01, and the Dow Jones gained around 202.86 points, or 0.44%, to end at 46,448.27 [3] Economic Indicators - Key economic reports are anticipated, including October's U.S. retail sales and Producer Price Index (PPI) readings, which are crucial for assessing inflation and consumer spending [4] - Upcoming reports include October Durable Orders, November Chicago PMI, October New Home Sales, and October Personal Income and Outlays [4] Company Performance - Alphabet (GOOGL) shares rallied over 6% following the announcement of its upgraded AI model, Gemini 3 [5] - Other AI-related companies saw strong performance: Broadcom surged 11.1%, Micron Technology gained about 8%, Palantir Technologies rose 4.8%, and Advanced Micro Devices advanced 5.5% [5] - Alibaba Group shares surged 5.1% after announcing its AI app, Qwen, had 10 million downloads in its first week [6] - Novo Nordisk shares tumbled 5.6% after a clinical trial for its Alzheimer's treatment failed [6] - Corporación América Airports shares gained 1.6% after reporting third-quarter revenues that beat estimates [6] Market Sentiment - There is a growing expectation of a Federal Reserve interest rate cut in December, with traders betting on an 85% probability of a rate cut next month [8] - Recent dovish remarks from Fed officials have contributed to this shift in expectations, positively impacting stock performance despite concerns about AI sector valuations [8]

Core Viewpoint - Analog Devices, Inc. (NASDAQ:ADI) is facing mixed sentiments in the market, particularly due to its exposure to weak sectors like the Internet of Things and industrial semiconductors, leading to concerns about its stock performance [1]. Company Overview - Analog Devices, Inc. designs and manufactures integrated circuits, sensors, and software for managing and processing analog and digital signals [2]. - The company has a strong market position with 70% gross margins and ranks 1 and 2 in key segments of the analog semiconductor industry [2]. - Analog Devices has a competitive advantage through its base of 11,000 analog engineers, who possess an average of over 7 years of on-the-job experience, making this engineering talent irreplaceable [2]. Investment Sentiment - Kovitz Investment Group Partners, LLC reestablished a position in Analog Devices after a 30% decline in stock price since late February, indicating a belief in the company's long-term potential despite current market challenges [2]. - The company is noted for its products being in high demand, particularly in economically sensitive industries like automotive and industrial production, which are essential for enabling advanced technology [2]. - While there is recognition of Analog Devices' potential, some analysts suggest that certain AI stocks may offer better upside potential with less downside risk [2].

Core Insights - Investors will have a break next week due to the market closure on November 27 for Thanksgiving, allowing time for assessment and reflection after a challenging week for Wall Street [2] - Despite the end of the U.S. government shutdown, some key economic reports are still being canceled due to insufficient survey data, impacting market expectations [3] Earnings Reports - Several companies are scheduled to report earnings next week, including Alibaba Group (BABA), Dell (DELL), Deere & Company (DE), Analog Devices (ADI), Best Buy (BBY), HP (HPQ), and DICK'S Sporting Goods (DKS) [4] - Specific earnings highlights include: - Monday: Agilent Technologies (A), Zoom Communications (ZM), Symbotic (SYM) [5] - Tuesday: Alibaba, Analog Devices (ADI), Dell Technologies, Best Buy (BBY), Autodesk (ADSK), Workday (WDAY), Zscaler (ZS), HP (HPQ), DICK'S Sporting Goods, J.M. Smucker (SJM), and NIO (NIO) [5] - Wednesday: Deere, Li Auto (LI) [5] - Thursday: Intuitive Machines (LUNR) [6] - Friday: Frontline Plc (FRO), Buckle, Inc. (BKE) [6]

The webcast for the conference may be accessed live via the Investor Relations section of Analog Devices' website at investor.analog.com. An archived replay will also be available following the webcast for at least 30 days. About Analog Devices, Inc. Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements ...