Core Viewpoint - The rapid development of artificial intelligence (AI) technology is creating widespread opportunities in the market, with a focus on analyzing AI concept stocks and market trends [2]. Group 1: AI Chip Collaboration - ByteDance is reportedly collaborating with Chipone Technology to design an advanced AI computing chip, although ByteDance has denied any such partnership [4]. Group 2: Regulatory Perspective on AI - U.S. Federal Reserve Vice Chair Bowman emphasized the necessity for banks and regulators to embrace new technologies like AI and cryptocurrencies to avoid losing relevance in the economy [4]. Group 3: Market Performance - On August 19, U.S. stock indices closed mixed, with major tech stocks experiencing significant declines, particularly NVIDIA, which fell by 3.5%, marking its largest drop in nearly four months [4][5]. - The overall decline in large tech stocks led to a 1.69% drop in the Nasdaq-100 index, with NVIDIA losing over $155 billion in market value (approximately 1.1 trillion RMB) [5]. Group 4: Semiconductor Sector Outlook - Citigroup analysts suggest that semiconductor stocks have further upside potential, recommending buying on dips. The Philadelphia Semiconductor Index (SOX) initially fell by 5% but rebounded due to strong performance in the AI sector [9][10]. - Despite a 6% downward adjustment in overall earnings expectations, AI remains a bright spot, with companies like Meta, Microsoft, and Google expected to increase capital expenditures by $18 billion by 2025 [10]. - Key semiconductor stocks identified for continued growth include Microchip Technology, Texas Instruments, Broadcom, Micron, and NXP Semiconductors, with AI-related revenue contributions highlighted [9][10].

PART I — FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion for the three and nine months ended August 2, 2025 [Financial Statements](index=2&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three and nine months ended August 2, 2025, along with detailed explanatory notes [Condensed Consolidated Statements of Income](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported strong year-over-year growth in revenue and net income for both the third quarter and the first nine months of fiscal 2025 Q3 & Nine Months FY2025 Financial Performance (YoY) | Financial Metric | Three Months Ended Aug 2, 2025 (Millions USD) | Three Months Ended Aug 3, 2024 (Millions USD) | YoY Change | Nine Months Ended Aug 2, 2025 (Millions USD) | Nine Months Ended Aug 3, 2024 (Millions USD) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $2,880.3 | $2,312.2 | +24.6% | $7,943.6 | $6,984.0 | +13.7% | | **Gross Margin** | $1,789.7 | $1,311.2 | +36.5% | $4,831.7 | $3,965.2 | +21.8% | | **Operating Income** | $818.0 | $491.3 | +66.5% | $1,987.3 | $1,463.4 | +35.8% | | **Net Income** | $518.5 | $392.2 | +32.2% | $1,479.6 | $1,157.2 | +27.9% | | **Diluted EPS** | $1.04 | $0.79 | +31.6% | $2.97 | $2.32 | +28.0% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at $48.19 billion, with increased long-term debt and a decrease in shareholders' equity as of August 2, 2025 Key Balance Sheet Items (As of August 2, 2025 vs. November 2, 2024) | Account | August 2, 2025 (Millions USD) | November 2, 2024 (Millions USD) | | :--- | :--- | :--- | | **Total Current Assets** | $6,924.6 | $5,484.7 | | **Total Assets** | $48,192.6 | $48,228.3 | | **Long-term Debt** | $8,139.9 | $6,634.3 | | **Total Liabilities** | $14,106.8 | $13,051.9 | | **Total Shareholders' Equity** | $34,085.8 | $35,176.3 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $3.11 billion, while financing activities used $1.69 billion primarily due to stock repurchases and dividends Cash Flow Summary (Nine Months Ended) | Cash Flow Activity | August 2, 2025 (Millions USD) | August 3, 2024 (Millions USD) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $3,111.4 | $2,801.7 | | **Net cash used for investing activities** | ($1,096.2) | ($993.2) | | **Net cash used for financing activities** | ($1,685.3) | ($660.5) | | **Net increase in cash and cash equivalents** | $329.8 | $1,148.0 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail special charges, strong revenue growth across all markets, debt issuance and repayment, and tax law impacts Revenue by End Market (Q3 FY2025 vs Q3 FY2024) | End Market | Revenue (Q3 2025, Millions USD) | % of Revenue | YoY Growth | | :--- | :--- | :--- | :--- | | **Industrial** | $1,285.0 | 45% | 23% | | **Automotive** | $850.6 | 30% | 22% | | **Consumer** | $372.2 | 13% | 21% | | **Communications** | $372.5 | 13% | 40% | | **Total Revenue** | **$2,880.3** | **100%** | **25%** | - The company recorded net special charges of **$70.0 million** in the first nine months of fiscal 2025 as part of its Global Repositioning Actions, primarily for employee severance costs[28](index=28&type=chunk) - In June 2025, the company issued **$850.0 million** of 4.250% senior notes due 2028 and **$650.0 million** of 4.500% senior notes due 2030, also repaying **$400.0 million** of notes due in April 2025[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The OBBBA tax law in Q3 2025 resulted in a net deferred tax expense of **$153.8 million**, with the company contesting a separate IRS assessment of approximately **$267.0 million** for fiscal years 2018 and 2019[53](index=53&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q3 2025 financial performance, including 25% revenue growth, improved gross margins, and capital allocation strategies [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Revenue grew **25%** year-over-year, driven by strong demand and **40%** growth in Communications, with gross margin improving to **62.1%** - Revenue increased **25%** in Q3 2025 year-over-year, attributed to a broad-based increase in demand, with the Communications end market growing **40%** due to data center infrastructure build-outs for artificial intelligence applications[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Gross margin percentage increased by **540 basis points** in Q3 2025 year-over-year, primarily due to higher utilization of factories resulting from increased customer demand[78](index=78&type=chunk) - R&D and SMG&A expenses increased by **25%** and **27%** respectively in Q3 2025 year-over-year, primarily due to higher employee-related variable compensation expenses[79](index=79&type=chunk)[80](index=80&type=chunk) - The effective income tax rate for Q3 2025 was **32.1%**, a significant increase from **7.3%** in the prior-year period, mainly due to a **$153.8 million** net deferred tax expense related to the passage of the OBBBA tax law[85](index=85&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained **$3.5 billion** in liquidity, with **$3.1 billion** from operations, and allocated capital to stock repurchases and dividends - As of August 2, 2025, the company's principal source of liquidity was **$3.5 billion** of cash, cash equivalents, and short-term investments[88](index=88&type=chunk) - In the first nine months of fiscal 2025, the company used **$1.48 billion** for common stock repurchases and **$1.44 billion** for dividend payments[19](index=19&type=chunk)[93](index=93&type=chunk) - As of August 2, 2025, **$10.3 billion** remained available for repurchases under the company's common stock repurchase program[102](index=102&type=chunk) - In August 2025, the company increased the aggregate amount it may issue under its commercial paper program from **$2.5 billion** to **$3.0 billion**[60](index=60&type=chunk)[99](index=99&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks were reported for the nine-month period ended August 2, 2025, compared to the prior fiscal year - There were no material changes in the company's market risks during the nine-month period ended August 2, 2025, compared to those disclosed in the fiscal 2024 Form 10-K[108](index=108&type=chunk) [Controls and Procedures](index=28&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of August 2, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of August 2, 2025[109](index=109&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[110](index=110&type=chunk) PART II — OTHER INFORMATION This section provides other information including risk factors, equity security purchases, and exhibits [Risk Factors](index=29&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers to previously disclosed risk factors from the fiscal year 2024 Form 10-K, with no new material changes reported - The company directs investors to the risk factors identified in its Annual Report on Form 10-K for the fiscal year ended November 2, 2024[113](index=113&type=chunk) [Issuer Purchases of Equity Securities](index=30&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **4.68 million** shares for **$1.06 billion** in Q3 2025, with **$10.3 billion** remaining for future repurchases Issuer Purchases of Equity Securities (Q3 FY2025) | Period | Total Shares Purchased | Average Price Paid Per Share (USD) | Value of Shares Remaining for Purchase (Millions USD) | | :--- | :--- | :--- | :--- | | **May 4 - May 31, 2025** | 1,217,136 | $214.45 | $11,095.4 | | **June 1 - June 28, 2025** | 1,402,921 | $228.08 | $10,777.0 | | **June 29 - Aug 2, 2025** | 2,061,232 | $235.04 | $10,294.7 | | **Total** | **4,681,289** | **$227.60** | **$10,294.7** | [Other Information](index=30&type=section&id=ITEM%205.%20Other%20Information) CEO and Chair Vincent Roche adopted a new Rule 10b5-1 trading plan on May 23, 2025, for the sale of up to **90,000** shares - On May 23, 2025, CEO and Chair Vincent Roche terminated a Rule 10b5-1 trading arrangement and adopted a new one for the sale of up to **90,000** shares of company stock[116](index=116&type=chunk) [Exhibits](index=31&type=section&id=ITEM%206.%20Exhibits) Key exhibits filed include a supplemental indenture for new debt, CEO and CFO certifications, and XBRL interactive data files - Key exhibits filed with this report include the Supplemental Indenture for the June 2025 notes, Sarbanes-Oxley certifications by the CEO and CFO, and XBRL interactive data files[119](index=119&type=chunk)

[Fiscal Third Quarter 2025 Financial Results Overview](index=1&type=section&id=Fiscal_Q3_2025_Financial_Results_Overview) Overview of Analog Devices' strong Q3 FY25 financial performance, future outlook, and corporate announcements [Executive Summary](index=1&type=section&id=Executive_Summary) Analog Devices exceeded Q3 FY25 revenue and earnings per share expectations despite geopolitical challenges, driven by robust demand, especially in the Industrial market, and continued backlog growth - ADI's third-quarter revenue and earnings per share exceeded the high end of expectations, despite geopolitical challenges[2](index=2&type=chunk) - Demand for ADI's products remains robust, with continued backlog growth and healthy bookings trends, notably in the Industrial end market[2](index=2&type=chunk) Key Financial Highlights (Q3 FY25 & Trailing Twelve Months) | Metric | Value | | :----------------------------- | :-------------------- | | Revenue (Q3) | **$2.88 billion** | | Operating cash flow (TTM) | **$4.2 billion** (**40% of revenue**) | | Free cash flow (TTM) | **$3.7 billion** (**35% of revenue**) | | Returned to shareholders (Q3) | **$1.6 billion** (**$0.5 billion** dividends, **$1.1 billion** repurchases) | [Performance for the Third Quarter of Fiscal 2025](index=2&type=section&id=Performance_for_the_Third_Quarter_of_Fiscal_2025) Analog Devices reported strong Q3 FY25 financial results with significant year-over-year growth in revenue, gross margin, operating income, and diluted EPS, both on a GAAP and adjusted basis Q3 FY25 Financial Performance (YoY Change) | Metric | Aug. 2, 2025 (in millions) | Aug. 3, 2024 (in millions) | Change | | :----------------------------- | :----------- | :----------- | :----- | | Revenue | $2,880M | $2,312M | 25% | | Gross margin | $1,790M | $1,311M | 36% | | Gross margin percentage | 62.1% | 56.7% | 540 bps | | Operating income | $818M | $491M | 67% | | Operating margin | 28.4% | 21.2% | 720 bps | | Diluted earnings per share | $1.04 | $0.79 | 32% | | **Adjusted Results** | | | | | Adjusted gross margin | $1,995M | $1,571M | 27% | | Adjusted gross margin percentage | 69.2% | 67.9% | 130 bps | | Adjusted operating income | $1,215M | $952M | 28% | | Adjusted operating margin | 42.2% | 41.2% | 100 bps | | Adjusted diluted earnings per share | $2.05 | $1.58 | 30% | Q3 FY25 Cash Generation & Return | Metric | Three Months Ended Aug. 2, 2025 (in millions) | Trailing Twelve Months Ended Aug. 2, 2025 (in millions) | | :---------------------------------- | :-------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $1,165M | $4,162M | | % of revenue | 40% | 40% | | Capital expenditures | $(79)M | $(484)M | | Free cash flow | $1,086M | $3,678M | | % of revenue | 38% | 35% | | Dividend paid | $(490)M | $(1,894)M | | Stock repurchases | $(1,075)M | $(1,579)M | | Total cash returned | $(1,565)M | $(3,473)M | [Outlook for the Fourth Quarter of Fiscal Year 2025](index=3&type=section&id=Outlook_for_the_Fourth_Quarter_of_Fiscal_Year_2025) For the fourth quarter of fiscal 2025, Analog Devices forecasts revenue of $3.0 billion (midpoint), with anticipated increases in both reported and adjusted operating margins and EPS Q4 FY25 Financial Outlook (Midpoint) | Metric | Forecast | | :---------------------- | :-------------------- | | Revenue | $3.0 billion (+/- $100M) | | Reported Operating margin | ~30.5% (+/-150 bps) | | Adjusted Operating margin | ~43.5% (+/-100 bps) | | Reported EPS | $1.53 (+/-$0.10) | | Adjusted EPS | $2.22 (+/-$0.10) | - The fourth quarter fiscal 2025 outlook is based on current expectations and actual results may differ materially due to important factors discussed at the end of the release[7](index=7&type=chunk) [Dividend Payment](index=3&type=section&id=Dividend_Payment) Analog Devices' Board of Directors declared a quarterly cash dividend of $0.99 per outstanding share of common stock, payable on September 16, 2025, to shareholders of record as of September 2, 2025 Dividend Details | Metric | Value | | :---------------------- | :-------------------- | | Quarterly Cash Dividend | $0.99 per share | | Payment Date | September 16, 2025 | | Record Date | September 2, 2025 | [Conference Call Scheduled](index=3&type=section&id=Conference_Call_Scheduled) Analog Devices scheduled a conference call for August 20, 2025, at 10:00 am ET to discuss Q3 FY25 results and the short-term outlook, accessible via webcast - A conference call to discuss Q3 FY25 results and short-term outlook was scheduled for August 20, 2025, at 10:00 am ET[10](index=10&type=chunk) - Investors may join the conference call via webcast, accessible at investor.analog.com[10](index=10&type=chunk) [Non-GAAP Financial Information](index=3&type=section&id=Non-GAAP_Financial_Information) Details Analog Devices' non-GAAP financial measures, their purpose, limitations, and definitions [Purpose and Limitations of Non-GAAP Measures](index=3&type=section&id=Purpose_and_Limitations_of_Non-GAAP_Measures) Analog Devices uses non-GAAP financial measures internally and for investor communication to evaluate operating performance and core business trends, believing they provide useful insights - Management uses non-GAAP measures internally to evaluate operating performance, budget resources, and assess core business trends[12](index=12&type=chunk) - Non-GAAP measures are considered useful to investors for evaluating the company's core business and its ability to pay dividends, purchase common stock, and fund investments[13](index=13&type=chunk) - Non-GAAP measures are not GAAP compliant, have material limitations, and should not be considered in isolation from, or as a substitute for, GAAP financial results[11](index=11&type=chunk) [Definitions of Non-GAAP Measures](index=4&type=section&id=Definitions_of_Non-GAAP_Measures) The report defines several non-GAAP financial measures, including adjusted gross margin, operating expenses, operating income, nonoperating expense, income before income taxes, provision for income taxes, diluted EPS, and free cash flow - Adjusted gross margin, operating expenses, operating income, nonoperating expense, income before income taxes, provision for income taxes, and diluted EPS exclude acquisition-related expenses, special charges, and tax-related items[14](index=14&type=chunk)[15](index=15&type=chunk) - Free cash flow is defined as net cash provided by operating activities, determined in accordance with GAAP, less additions to property, plant and equipment, net[15](index=15&type=chunk) - Acquisition Related Expenses, Special Charges, Net, and Tax Related Items are excluded from non-GAAP measures because they relate to specific transactions, are not reflective of ongoing financial performance, or are not associated with current operating results[16](index=16&type=chunk)[17](index=17&type=chunk) [Company Information and Disclosures](index=5&type=section&id=Company_Information_and_Disclosures) Overview of Analog Devices, covering its business, forward-looking statements, and trademark information [About Analog Devices, Inc.](index=5&type=section&id=About_Analog_Devices_Inc) Analog Devices, Inc. (ADI) is a global semiconductor leader that integrates analog, digital, and software technologies to enable breakthroughs at the Intelligent Edge across various sectors like digitized factories, mobility, and digital healthcare - Analog Devices (ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge[18](index=18&type=chunk) - ADI combines analog, digital, and software technologies into solutions driving advancements in digitized factories, mobility, digital healthcare, and climate change combat[18](index=18&type=chunk) - ADI reported revenue of **more than $9 billion** in FY24 and has approximately **24,000 employees** globally[18](index=18&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking_Statements) This section contains forward-looking statements regarding future financial performance, market conditions, capital allocation, and other business aspects - The press release contains forward-looking statements addressing future financial performance, impacts related to tariffs, economic uncertainty, market conditions, and capital allocation strategy[19](index=19&type=chunk) - Such statements are based on current expectations and are subject to numerous factors and uncertainties, including geopolitical conflicts, changes in demand, supply chain disruptions, and regulatory changes, which could cause actual results to differ materially[19](index=19&type=chunk)[20](index=20&type=chunk) - The company does not undertake any obligation to update forward-looking statements, except as required by law[20](index=20&type=chunk) [Trademarks](index=6&type=section&id=Trademarks) Analog Devices and its logo are registered trademarks or trademarks of Analog Devices, Inc., while all other trademarks mentioned in the document are the property of their respective owners - Analog Devices and the Analog Devices logo are registered trademarks or trademarks of Analog Devices, Inc[21](index=21&type=chunk) - All other trademarks mentioned in this document are the property of their respective owners[21](index=21&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated_Financial_Statements_Unaudited) Presents Analog Devices' unaudited consolidated statements of income, balance sheets, and cash flows [Consolidated Statements of Income](index=7&type=section&id=CONSOLIDATED_STATEMENTS_OF_INCOME) The consolidated statements of income show Analog Devices' financial performance for the three and nine months ended August 2, 2025, compared to the prior year Consolidated Statements of Income (Three Months Ended) | Metric | Aug. 2, 2025 (in thousands) | Aug. 3, 2024 (in thousands) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Revenue | $2,880,348 | $2,312,209 | | Cost of sales | $1,090,600 | $1,000,970 | | Gross margin | $1,789,748 | $1,311,239 | | Total operating expenses | $971,720 | $819,920 | | Operating income | $818,028 | $491,319 | | Income before income taxes | $763,409 | $422,991 | | Net income | $518,518 | $392,232 | | Diluted earnings per common share | $1.04 | $0.79 | Consolidated Statements of Income (Nine Months Ended) | Metric | Aug. 2, 2025 (in thousands) | Aug. 3, 2024 (in thousands) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Revenue | $7,943,590 | $6,983,952 | | Cost of sales | $3,111,929 | $3,018,737 | | Gross margin | $4,831,661 | $3,965,215 | | Total operating expenses | $2,844,376 | $2,501,809 | | Operating income | $1,987,285 | $1,463,406 | | Income before income taxes | $1,824,913 | $1,261,012 | | Net income | $1,479,604 | $1,157,201 | | Diluted earnings per common share | $2.97 | $2.32 | [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED_BALANCE_SHEETS) The consolidated balance sheets present Analog Devices' financial position as of August 2, 2025, and November 2, 2024 Consolidated Balance Sheets (Key Figures, in thousands) | Metric | Aug. 2, 2025 | Nov. 2, 2024 | | :-------------------------------- | :----------- | :----------- | | Total current assets | $6,924,569 | $5,484,654 | | Total non-current assets | $41,268,032 | $42,743,623 | | **TOTAL ASSETS** | **$48,192,601** | **$48,228,277** | | Total current liabilities | $2,979,038 | $2,988,280 | | Total non-current liabilities | $11,127,721 | $10,063,680 | | Total shareholders' equity | $34,085,842 | $35,176,317 | | **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | **$48,192,601** | **$48,228,277** | - Cash and cash equivalents increased from **$1.991 billion** on November 2, 2024, to **$2.321 billion** on August 2, 2025[25](index=25&type=chunk) - Long-term debt increased from **$6.634 billion** on November 2, 2024, to **$8.140 billion** on August 2, 2025[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED_CONSOLIDATED_STATEMENTS_OF_CASH_FLOWS) The condensed consolidated statements of cash flows detail Analog Devices' cash movements from operating, investing, and financing activities for the three and nine months ended August 2, 2025 Condensed Consolidated Statements of Cash Flows (Three Months Ended, in thousands) | Metric | Aug. 2, 2025 | Aug. 3, 2024 | | :------------------------------------ | :----------- | :----------- | | Net cash provided by operating activities | $1,165,105 | $855,027 | | Net cash used for investing activities | $(1,230,108) | $(172,066) | | Net cash provided by (used for) financing activities | $9,959 | $(516,624) | | Net (decrease) increase in cash and cash equivalents | $(55,044) | $166,337 | | Cash and cash equivalents at end of period | $2,321,191 | $2,106,032 | Condensed Consolidated Statements of Cash Flows (Nine Months Ended, in thousands) | Metric | Aug. 2, 2025 | Aug. 3, 2024 | | :------------------------------------ | :----------- | :----------- | | Net cash provided by operating activities | $3,111,392 | $2,801,712 | | Net cash used for investing activities | $(1,096,216) | $(993,244) | | Net cash provided by (used for) financing activities | $(1,685,327) | $(660,497) | | Net (decrease) increase in cash and cash equivalents | $329,849 | $1,147,971 | | Cash and cash equivalents at end of period | $2,321,191 | $2,106,032 | - Significant cash outflows in Q3 FY25 for investing activities were primarily due to purchases of short-term available-for-sale investments (**$1.150 billion**)[27](index=27&type=chunk) [Supplemental Financial Data](index=10&type=section&id=Supplemental_Financial_Data) Provides supplemental financial data, including revenue trends by market and GAAP/non-GAAP reconciliations [Revenue Trends by End Market](index=10&type=section&id=REVENUE_TRENDS_BY_END_MARKET) Analog Devices reported double-digit year-over-year revenue growth across all end markets for Q3 FY25, with Communications showing the highest growth at 40% Revenue by End Market (Three Months Ended) | End Market | Aug. 2, 2025 Revenue (in thousands) | % of Revenue | Y/Y% Change | Aug. 3, 2024 Revenue (in thousands) | % of Revenue | | :----------- | :-------------------------------- | :----------- | :---------- | :-------------------------------- | :----------- | | Industrial | $1,285,041 | 45% | 23% | $1,045,291 | 45% | | Automotive | $850,619 | 30% | 22% | $694,905 | 30% | | Consumer | $372,197 | 13% | 21% | $306,832 | 13% | | Communications | $372,491 | 13% | 40% | $265,181 | 11% | | **Total revenue** | **$2,880,348** | **100%** | **25%** | **$2,312,209** | **100%** | Revenue by End Market (Nine Months Ended) | End Market | Aug. 2, 2025 Revenue (in thousands) | % of Revenue | Y/Y% Change | Aug. 3, 2024 Revenue (in thousands) | % of Revenue | | :----------- | :-------------------------------- | :----------- | :---------- | :-------------------------------- | :----------- | | Industrial | $3,502,751 | 44% | 9% | $3,223,111 | 46% | | Automotive | $2,445,391 | 31% | 14% | $2,136,173 | 31% | | Consumer | $1,009,614 | 13% | 24% | $817,436 | 12% | | Communications | $985,834 | 12% | 22% | $807,232 | 12% | | **Total revenue** | **$7,943,590** | **100%** | **14%** | **$6,983,952** | **100%** | - The categorization of revenue by end market may vary over time as data systems and methodology evolve, with reclassifications for prior periods typically not materially changing the sizing or underlying trends[29](index=29&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=11&type=section&id=RECONCILIATION_OF_GAAP_TO_NON-GAAP_RESULTS) This section provides a detailed reconciliation of GAAP to non-GAAP financial measures for gross margin, operating expenses, operating income, nonoperating expense, income before income taxes, provision for income taxes, and diluted EPS for both the three and nine months ended August 2, 2025, and August 3, 2024 GAAP to Non-GAAP Reconciliation (Three Months Ended Aug. 2, 2025, in thousands, except per share amounts) | Metric | GAAP | Adjustments | Non-GAAP | | :----------------------------- | :----------- | :------------ | :----------- | | Gross margin | $1,789,748 | $204,756 | $1,994,504 | | Operating expenses | $971,720 | $(188,015) (Acq.) $(4,348) (Spec.) | $779,357 | | Operating income | $818,028 | $392,771 (Acq.) $4,348 (Spec.) | $1,215,147 | | Income before income taxes | $763,409 | $390,621 (Acq.) $4,348 (Spec.) | $1,158,378 | | Provision for income taxes | $244,891 | $(106,855) (Tax) | $138,036 | | Diluted EPS | $1.04 | $0.79 (Acq.) $0.01 (Spec.) $0.22 (Tax) | $2.05 | GAAP to Non-GAAP Reconciliation (Nine Months Ended Aug. 2, 2025, in thousands, except per share amounts) | Metric | GAAP | Adjustments | Non-GAAP | | :----------------------------- | :----------- | :------------ | :----------- | | Gross margin | $4,831,661 | $662,865 | $5,494,526 | | Operating expenses | $2,844,376 | $(564,045) (Acq.) $(69,980) (Spec.) | $2,210,351 | | Operating income | $1,987,285 | $1,226,910 (Acq.) $69,980 (Spec.) | $3,284,175 | | Income before income taxes | $1,824,913 | $1,220,460 (Acq.) $69,980 (Spec.) | $3,115,353 | | Provision for income taxes | $345,309 | $15,780 (Tax) | $361,089 | | Diluted EPS | $2.97 | $2.45 (Acq.) $0.14 (Spec.) $(0.03) (Tax) | $5.53 | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=12&type=section&id=RECONCILIATION_OF_NET_CASH_PROVIDED_BY_OPERATING_ACTIVITIES_TO_FREE_CASH_FLOW) This section reconciles net cash provided by operating activities to free cash flow for the trailing twelve months and for each of the last four fiscal quarters ending August 2, 2025 Free Cash Flow Reconciliation (Trailing Twelve Months, in thousands) | Metric | Aug. 2, 2025 | | :------------------------------------ | :----------- | | Revenue | $10,386,795 | | Net cash provided by operating activities | $4,162,209 | | % of Revenue | 40% | | Capital expenditures | $(483,809) | | Free cash flow | $3,678,400 | | % of Revenue | 35% | Free Cash Flow Reconciliation (Three Months Ended, in thousands) | Metric | Aug. 2, 2025 | May 3, 2025 | Feb. 1, 2025 | Nov. 2, 2024 | | :------------------------------------ | :----------- | :---------- | :----------- | :----------- | | Net cash provided by operating activities | $1,165,105 | $819,478 | $1,126,809 | $1,050,817 | | Capital expenditures | $(79,153) | $(90,268) | $(148,978) | $(165,410) | | Free cash flow | $1,085,952 | $729,210 | $977,831 | $885,407 | | % of Revenue | 38% | 28% | 40% | 36% | [Reconciliation of Projected GAAP to Non-GAAP Results](index=13&type=section&id=RECONCILIATION_OF_PROJECTED_GAAP_TO_NON-GAAP_RESULTS) This section provides a reconciliation of projected GAAP to non-GAAP results for the fourth quarter ending November 1, 2025 Projected GAAP to Non-GAAP Reconciliation (Q4 FY25 Outlook) | Metric | Reported (GAAP) | Adjusted (Non-GAAP) | | :---------------------- | :-------------- | :------------------ | | Revenue | $3.0 Billion (+/- $100M) | $3.0 Billion (+/- $100M) | | Operating margin | 30.5% (+/-150 bps) | 43.5% (+/-100 bps) | | Nonoperating expenses | ~ $55-$60 Million | ~ $55-$60 Million | | Tax rate | 11% - 13% | 11% - 13% | | Earnings per share | $1.53 (+/- $0.10) | $2.22 (+/- $0.10) | - Adjustments for operating margin include **$391 million** related to acquisition related expenses[35](index=35&type=chunk) - Adjustments for EPS include **$0.69** related to the net impact of acquisition related expenses and the tax effects on those items[36](index=36&type=chunk) [Investor Relations Contact](index=13&type=section&id=Investor_Relations_Contact) Provides contact information for Analog Devices' Investor Relations department [Contact Information](index=13&type=section&id=Contact_Information) For further information, investors can contact Jeff Ambrosi, Senior Director of Investor Relations, via phone or email - Contact Jeff Ambrosi, Senior Director, Investor Relations, for more information[37](index=37&type=chunk) - Contact details: 781-461-3282, investor.relations@analog.com[37](index=37&type=chunk)

Financial Performance - Analog Devices, Inc. reported third-quarter revenue of $2.88 billion, representing a 25% increase year-over-year from $2.31 billion [3][31] - The gross margin for the quarter was $1.79 billion, with a gross margin percentage of 62.1%, up from 56.7% in the same quarter last year, reflecting a 540 basis points improvement [3][32] - Operating income increased by 67% to $818 million, with an operating margin of 28.4%, compared to 21.2% in the prior year [3][32] - Diluted earnings per share (EPS) rose by 32% to $1.04, compared to $0.79 in the same quarter last year [3][32] Cash Flow and Shareholder Returns - The company generated $1.17 billion in net cash from operating activities, representing 40% of revenue, and $1.09 billion in free cash flow, or 38% of revenue for the quarter [6][33] - Analog Devices returned $1.56 billion to shareholders in the third quarter, including $0.49 billion in dividends and $1.07 billion in stock repurchases [6][33] Market Outlook - For the fourth quarter of fiscal 2025, the company forecasts revenue of approximately $3.0 billion, with an expected operating margin of around 30.5% and adjusted operating margin of about 43.5% [5][34] - The anticipated diluted EPS for the fourth quarter is projected to be $1.53, with adjusted EPS expected to be $2.22 [5][34] Revenue by End Market - In the third quarter, revenue from the Industrial segment was $1.29 billion, up 23% year-over-year, while Automotive revenue reached $850 million, a 30% increase [30][31] - Consumer and Communications segments also saw growth, with revenues of $372 million and $372 million respectively, reflecting year-over-year increases of 21% and 40% [31][30] Strategic Positioning - The company emphasized its focus on innovation and a diverse business model that allows it to navigate market uncertainties, particularly in light of geopolitical challenges [2][6] - The continued backlog growth and healthy bookings trends, especially in the Industrial end market, position the company for sustained growth [2][6]

Core Viewpoint - The article highlights the capabilities and offerings of a chip distribution company, emphasizing its extensive inventory, quality control measures, and customer service efficiency. Group 1: Inventory and Facilities - The company operates a 1,600 square meter smart warehouse with over 1,000 stock models and around 100 brands, holding a total of 50 million chips valued at over 100 million [1] - An independent laboratory is established in Shenzhen for quality control (QC) inspections on every material [1] Group 2: Procurement and Sales - The company is actively seeking specific chip models, including VISHAY, ADI, and ST brands, with quantities ranging from 3,000 to 21,000 units [2] - It offers advantageous materials for sale at discounted prices, including significant quantities of chips from brands like Realtek, MPS, and Renesas, with stock levels reaching up to 1.7 million pieces [3] Group 3: Customer Engagement and Service - The company has served a cumulative total of 20,000 users and can complete transactions in as fast as half a day [4] - It promotes a mini-program for factory surplus materials, indicating a focus on facilitating sales for hard-to-sell inventory [5]

Core Insights - Analog Devices (ADI) is expected to report quarterly earnings of $1.93 per share, a 22.2% increase year-over-year, with revenues projected at $2.76 billion, reflecting a 19.2% increase compared to the same period last year [1] Revenue Estimates by End Market - Revenue from the Consumer end market is forecasted to reach $352.36 million, indicating an 11.3% increase from the prior-year quarter [4] - Revenue from the Communications end market is projected at $321.10 million, suggesting a 20.4% year-over-year change [4] - Revenue from the Automotive end market is likely to be $798.62 million, reflecting a 19.1% increase from the year-ago quarter [5] - Revenue from the Industrial end market is expected to reach $1.27 billion, indicating a 20.3% year-over-year change [5] Market Performance - Over the past month, shares of Analog Devices have returned -2%, while the Zacks S&P 500 composite has seen a +3.3% change [5] - Currently, ADI holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Core Insights - Analog Devices, Inc. (ADI) is set to report its third-quarter fiscal 2025 results on August 20, with expected revenues of approximately $2.75 billion, reflecting a 19.2% increase year-over-year [1][9] - The anticipated adjusted earnings per share (EPS) is $1.92, indicating a 22.2% rise from the previous year's quarter, with a slight upward revision in estimates over the past 60 days [2] Revenue and Earnings Expectations - ADI's revenue forecast of $2.75 billion is within a range of +/- $100 million, while the Zacks Consensus Estimate stands at $2.76 billion [1] - The consensus for adjusted EPS is $1.93, with ADI having consistently surpassed earnings estimates in the last four quarters, averaging a surprise of 5.6% [2] Factors Influencing Q3 Performance - The third-quarter performance is expected to benefit from inventory normalization across direct and distribution channels, alongside improved bookings and lean inventory levels following the semiconductor industry's cyclical downturn [3] - Secular growth trends in industrial automation, healthcare, surgical robotics, automotive, AI infrastructure, and high-end consumer devices are anticipated to drive revenue growth [4] Challenges and Market Conditions - Despite positive growth factors, ADI faces macroeconomic challenges such as tariff-related uncertainties, geopolitical tensions, and inflationary pressures that may impact performance [5] Earnings Prediction Model - The earnings prediction model indicates a strong likelihood of an earnings beat for ADI, supported by a positive Earnings ESP of +0.72% and a Zacks Rank of 3 [6]

Group 1 - The company "Chip Superman" operates a 1,600 square meter smart warehouse for chips, with over 1,000 stock models and around 100 brands, totaling 50 million chips valued at over 100 million [1] - The company has an independent laboratory in Shenzhen, ensuring quality control (QC) for each material [1] - The company has served 20,000 users and can complete transactions in as fast as half a day [6] Group 2 - The company is currently seeking to purchase specific chip models, including 20,000 units of TI INA169NA/3K and 21,000 units of ST STM32U5A5ZJY3QTR [2] - The company is offering discounted sales on various advantageous materials, including 51,17 units of ADI LTM8001IYPBF and 16,000 units of ADI LTM4620AEYPBF [3][4] - The company promotes a platform for finding unsold inventory and better pricing options [8]

Core Viewpoint - Analog Devices (NASDAQ:ADI) is expected to report strong Q3 earnings on August 20, 2025, with earnings projected at approximately $1.95 per share, reflecting a 23% increase year-over-year, and revenue anticipated to rise by 20% to $2.76 billion, driven by growth in high-demand sectors such as AI, electric vehicles, and industrial automation [2][3] Financial Performance - The current market capitalization of Analog Devices is $115 billion, with the past twelve months' revenue recorded at $9.8 billion, resulting in operating profits of $2.3 billion and net income of $1.8 billion [3] - Historical performance indicates that Analog Devices stock has achieved a positive one-day return in 47% of earnings announcements over the last five years, with a median positive return of 5.0% and a median negative return of -1.8% [7] Earnings Strategy - Investors can adopt two strategies: position themselves before the earnings release based on historical odds or analyze the correlation between immediate and medium-term post-earnings returns to make informed decisions after the earnings announcement [4][8] - A relatively lower-risk strategy involves identifying correlations between short-term and medium-term returns post-earnings, allowing traders to position themselves accordingly based on the strength of these correlations [8][9]

Core Viewpoint - The global semiconductor market is projected to reach $180 billion in Q2 2025, marking a 7.8% increase from Q1 2025 and a 19.6% increase year-over-year from Q2 2024, continuing a trend of over 18% growth for six consecutive quarters [2]. Group 1: Market Performance - The semiconductor market is expected to see robust growth, with a forecasted annual growth rate between 14% and 16% for 2025, adjusted from a previous estimate of 11.2% to 15.4% [8]. - The strong performance in the first half of 2025 has led to an upward revision of the growth forecast from 7% to 13% [8]. Group 2: Company Revenue Insights - Nvidia is projected to maintain its position as the largest semiconductor company with expected revenues of $45 billion in Q2 2025, followed by Samsung and SK Hynix with revenues of $19.9 billion and $15.9 billion respectively [5][6]. - Memory chip manufacturers reported the highest revenue growth, with SK Hynix at 26%, Micron at 16%, and Samsung at 11% [5][6]. - Non-memory companies also showed growth, with Microchip Technology at 11%, STMicroelectronics at 10%, and Texas Instruments at 9.3% [5][6]. Group 3: Future Projections - Companies expect healthy revenue growth in Q3 2025, with Micron forecasting a 20% increase and Kioxia expecting a 30% increase, driven by demand in artificial intelligence applications [7]. - AMD anticipates a 13% revenue growth, while STMicroelectronics expects a 15% increase across all markets except automotive [7]. Group 4: Trade and Tariff Impacts - The uncertainty surrounding tariffs and global trade continues to pose challenges, with potential tariffs on semiconductor imports being a significant concern [10]. - The U.S. government has recently provided export licenses to Nvidia and AMD for certain AI chips to China, although the legality of this agreement is questioned [10]. Group 5: Smartphone Market Trends - The U.S. smartphone import volume saw a dramatic decline of 58% in dollar terms and 47% in quantity in Q2 2025, with imports from China dropping by 85% [11]. - Despite the decline in U.S. smartphone imports, China's smartphone manufacturing remains strong, with a 5% increase in production in Q2 2025 compared to Q1 2025 [12].