Core Insights - Analog Devices (ADI) reported third-quarter fiscal 2025 non-GAAP earnings of $2.05 per share, exceeding the Zacks Consensus Estimate by 6.2% and up from $1.58 per share in the same quarter last year [1][9] - The company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 5.6% [1] Revenue Performance - For the second quarter of fiscal 2025, Analog Devices generated revenues of $2.88 billion, surpassing the Zacks Consensus Estimate by 4.45% and increasing from $2.31 billion in the year-ago quarter [2][9] - In the third quarter, revenue breakdown by segment included: - Industrial: $1.29 billion (45% of total revenue), a 23% year-over-year increase [3] - Automotive: $850.6 million (30% of total revenue), up 22% year-over-year [3] - Consumer: $372.2 million (13% of total revenue), marking a 21% increase year-over-year [3] - Communications: $372.5 million (13% of total revenue), rising 40% year-over-year [3] Profitability Metrics - The adjusted gross margin improved by 130 basis points to 69.2%, while the adjusted operating margin increased by 100 basis points to 42.2% year-over-year [4] Financial Position - As of August 2, 2025, cash and cash equivalents stood at $2.32 billion, down from $2.38 billion as of May 3, 2025 [5] - The company held $1.15 billion in short-term investments and reported long-term debt of $8.14 billion, up from $6.65 billion in the previous quarter [5] - Operating cash flow for the third quarter was $1.17 billion, with free cash flow at $1.09 billion [5] Shareholder Returns - Analog Devices returned $1.57 billion to shareholders, which included $490 million in dividends and $1.08 billion in share repurchases [6] Future Guidance - For the fourth quarter of fiscal 2025, management anticipates revenues of $3.0 billion (+/- $100 million), compared to the Zacks Consensus Estimate of $2.79 billion, indicating a year-over-year growth of 14% [7] - Projected reported operating margin is approximately 30.5% (+/-150 bps), with an adjusted operating margin of about 43.5% (+/-100 bps) [7] - Expected reported earnings are $1.53 (+/-$0.10) per share, while adjusted earnings are projected at $2.22 (+/-$0.10) per share, above the consensus estimate of $1.98 per share [7]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $2,880,000,000, exceeding expectations, up 9% sequentially and 25% year over year [15] - Gross margin was 69.2% and operating margin was 42.2%, both up 100 basis points sequentially and year over year [18] - EPS was $2.5, above the high end of the guided range and up 30% year over year [18] Business Line Data and Key Metrics Changes - Industrial represented 45% of revenue, up 12% sequentially and 23% year over year, with double-digit growth across all subsectors [15] - Automotive accounted for 30% of revenue, down 1% sequentially but up 22% year over year [16] - Communications made up 13% of revenue, up 18% sequentially and 40% year over year [16] - Consumer also represented 13% of revenue, up 16% sequentially and 21% year over year, marking the fourth consecutive quarter of double-digit year-over-year growth [17] Market Data and Key Metrics Changes - The industrial business is experiencing a recovery, particularly in aerospace, defense, and automation sectors, driven by increased spending in defense and AI infrastructure [6][15] - The automotive market is seeing a decline in sequential revenue due to unwinding of prior pull-ins, particularly in China [47][50] Company Strategy and Development Direction - The company is focusing on innovation-driven growth, particularly in the industrial automation and robotics sectors, with expectations of long-term expansion [6][11] - Partnerships are being formed to enhance product offerings and customer collaborations, particularly in robotics and automation [9][12] - The company is investing in application-specific solutions to capture growth opportunities in advanced robotics [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating geopolitical and macroeconomic uncertainties, citing a diversified business model as a strength [6][21] - The outlook for the industrial market remains strong, with expectations for continued growth despite seasonal trends [25][42] - Management is monitoring the impacts of tariffs and other external factors closely [21] Other Important Information - Cash and short-term investments totaled $3,500,000,000, with a net leverage ratio of 1.1 [18][19] - Free cash flow over the trailing twelve months was $3,700,000,000, representing 35% of revenue [20] Q&A Session Summary Question: Industrial growth outlook and inventory levels - Management indicated that industrial growth has been strong, with expectations for continued growth in Q4, despite being in a cyclical upturn [24][25] Question: Gross margin expectations and utilization rates - Management acknowledged lower gross margins due to unexpected lower utilization but expects to return to 70% margins in Q4 [29][30] Question: Automation revenue growth potential - Management expressed optimism about the automation business potentially doubling in size by 2029 due to strong R&D and market demand [35][37] Question: Automotive market trends and pull-ins - Management noted that automotive revenue is expected to decline in Q4 due to unwinding of prior pull-ins, particularly in China [46][50] Question: Supply constraints in aerospace and defense - Management confirmed strong demand in aerospace and defense, leading to supply constraints, but is actively increasing capacity to meet demand [68][69]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $2.88 billion, exceeding expectations, up 9% sequentially and 25% year over year [15][21] - Gross margin was 69.2% and operating margin was 42.2%, both up 100 basis points sequentially and year over year [18] - EPS was $2.50, above the high end of the guided range, and up 30% year over year [18] Business Line Data and Key Metrics Changes - Industrial represented 45% of revenue, up 12% sequentially and 23% year over year, with growth across all subsectors and regions [15][16] - Automotive accounted for 30% of revenue, down 1% sequentially but up 22% year over year [16] - Communications made up 13% of revenue, up 18% sequentially and 40% year over year [16] - Consumer also represented 13% of revenue, up 16% sequentially and 21% year over year, marking the fourth consecutive quarter of double-digit year-over-year growth [17] Market Data and Key Metrics Changes - The industrial automation business is expected to see long-term expansion driven by economic and demographic pressures [6][11] - The robotics market is predicted to experience robust double-digit growth due to AI-enabled technology factors [7][11] Company Strategy and Development Direction - The company is focused on innovation and building ecosystem partnerships to enhance customer collaborations [8][12] - Investments are being made in application-specific solutions that integrate multiple sensing modalities [12] - The strategy emphasizes tackling innovation challenges at the intelligent physical edge [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating geopolitical and macroeconomic uncertainties due to a diversified business model [5][21] - The outlook for continued growth, especially in the industrial market, is strong, with expectations for fiscal 2025 to close as a recovery year [21] Other Important Information - Cash and short-term investments totaled $3.5 billion, with a net leverage ratio of 1.1 [18][19] - Free cash flow over the trailing twelve months was $3.7 billion, or 35% of revenue [20] Q&A Session Summary Question: Industrial growth and inventory levels - Management indicated that industrial growth has been strong and is expected to continue, with channel inventories remaining lean and end demand still below consumption [25][26] Question: Gross margin expectations - Management acknowledged lower gross margins due to unexpected lower utilization but expects to return to 70% margins in Q4 [30][31] Question: Automation revenue growth - The automation business is projected to double in size by 2029, driven by R&D and new modalities [36] Question: Automotive market performance - Automotive revenue is expected to decline in Q4 due to unwinding of pull-ins, but overall performance remains strong [46][48] Question: Supply constraints in aerospace and defense - Management noted surging demand in aerospace and defense, leading to supply limitations, but is actively increasing capacity [66][68]

Core Insights - Analog Devices (ADI) reported revenue of $2.88 billion for the quarter ended July 2025, marking a year-over-year increase of 24.6% and exceeding the Zacks Consensus Estimate of $2.76 billion by 4.45% [1] - The company achieved an EPS of $2.05, up from $1.58 a year ago, surpassing the consensus EPS estimate of $1.93 by 6.22% [1] Revenue Performance by End Market - Consumer revenue reached $372.2 million, exceeding the estimated $352.36 million, reflecting a year-over-year increase of 17.6% [4] - Communications revenue was reported at $372.49 million, significantly above the estimated $321.99 million, with a year-over-year growth of 39.7% [4] - Automotive revenue totaled $850.62 million, surpassing the estimated $798.62 million, representing a year-over-year increase of 26.9% [4] - Industrial revenue was $1.29 billion, slightly above the estimated $1.28 billion, showing a year-over-year growth of 21.4% [4] Stock Performance - Shares of Analog Devices have returned -2.2% over the past month, contrasting with the Zacks S&P 500 composite's +2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Analog Devices, Inc. (ADI) reported strong financial results for Q3 FY2025, exceeding analyst expectations in both revenue and earnings per share, which led to a nearly 5% increase in stock price, reaching a high of $241.78 [1] Financial Performance - Revenue for Q3 FY2025 increased by 25% year-over-year, reaching $2.88 billion, surpassing analyst expectations of $2.76 billion [1] - Adjusted earnings per share (EPS) were reported at $2.05, exceeding the analyst forecast of $1.95 [1] - Adjusted gross margin improved by 130 basis points, reaching 69.2% [1] Future Outlook - The company anticipates Q4 FY2025 revenue to be approximately $3 billion, with adjusted EPS expected to be around $2.22, both figures exceeding market expectations [1] - The board of directors announced a quarterly dividend of $0.99 per share [1]

亚德诺第四财季营收和盈利指引超出分析师预期，因为该公司预计尽管存在关税不确定性，但其产品的 市场需求仍将保持稳定。据 LSEG 收集的数据，该公司预测第四季度营收为 30 亿美元，上下浮动 1 亿 美元，高于分析师预测的 28.2 亿美元。该公司预计经调整后第四季度每股利润为 2.22 美元，上下浮动 0.1 美元，高于分析师预测的 2.03 美元。 此外，该公司还宣布了每股 0.99 美元的季度股息，该股息将于 9 月 2 日时向登记在册的股东支付，支 付将于 9 月 16 日进行。 智通财经APP获悉，周三，亚德诺(ADI.US)公布第三财季业绩。Q3营收为 28.8 亿美元，同比增长 24.7%，高于分析师预测的 27.7 亿美元。调整后每股盈利为 2.05 美元，高于市场预期的 1.95 美元。 这家芯片制造商得益于其工业领域的需求增长，从而实现了良好的订单预订趋势和订单积压量的增长， 因为制造商们在面对美国关税政策的变化时提前发货。工业部门的营收占公司总销售额的 45%，在第 三季度增长了 23%，达到 12.9 亿美元。 该公司首席执行官Vincent Roche说道："我们在第三季度结束时继续保 ...

Core Viewpoint - Analog Devices (ADI) reported quarterly earnings of $2.05 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and showing a year-over-year increase from $1.58 per share [1] Financial Performance - The company achieved revenues of $2.88 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 4.45%, compared to $2.31 billion in the same quarter last year [2] - Over the last four quarters, Analog Devices has consistently exceeded consensus EPS estimates [2] Stock Performance - Analog Devices shares have increased approximately 8.5% since the beginning of the year, while the S&P 500 has gained 9% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.98 on revenues of $2.79 billion, and for the current fiscal year, it is $7.40 on revenues of $10.58 billion [7] - The trend of estimate revisions for Analog Devices was favorable prior to the earnings release [6] Industry Context - The Semiconductor - Analog and Mixed industry is currently ranked in the top 18% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Core Insights - Analog Devices reported a 25% year-over-year revenue growth for Q3 FY2025, reaching $2.88 billion, exceeding analyst expectations of $2.76 billion [1] - Adjusted earnings per share (EPS) were $2.05, surpassing the forecast of $1.95 [1] - Adjusted gross margin improved by 130 basis points to 69.2% [1] Revenue Breakdown - Industrial revenue increased by 23% year-over-year, amounting to $1.29 billion [1] - Automotive business revenue grew by 22% year-over-year, reaching $850.6 million [1] Dividend Announcement - The board declared a quarterly dividend of $0.99 per share [1] Future Outlook - For Q4, the company anticipates revenue of approximately $3 billion, higher than the analyst estimate of $2.82 billion [1] - Adjusted EPS is expected to be around $2.22, also above the analyst forecast of $2.03 [1] - The CEO noted a continued increase in backlog and healthy order trends, particularly in the industrial end market [1]

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)