[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].

Group 1 - The company "Chip Superman" has a 1,600 square meter intelligent chip storage base with over 1,000 stock models and around 100 brands, totaling 50 million chips with a stock value exceeding 100 million [1] - The company operates 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 [5] Group 2 - The company is currently seeking to purchase specific chip models, including 30,000 units of Rubycon 80ZLH1500MEFC18X40 and 15,000 units of TI TMS320F28034PNT [2] - The company is offering discounted sales on advantageous materials, including 51,17 units of ADI LTM8001IYPBF and 16,000 units of ADI LTM4620AEYPBF [3] - The company highlights challenges in the chip distribution industry, including difficulties in finding and selling chips, and the need for better pricing [7]

Core Viewpoint - The market anticipates Analog Devices (ADI) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended July 2025, with a consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The consensus EPS estimate for Analog Devices is $1.93 per share, reflecting a year-over-year increase of +22.2%, while revenues are expected to reach $2.76 billion, up 19.2% from the previous year [3]. - A positive earnings surprise could lead to a stock price increase, whereas a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Analog Devices is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.72%, suggesting a bullish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Analog Devices currently holds a Zacks Rank of 2, enhancing the likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Analog Devices exceeded the expected earnings of $1.69 per share by delivering $1.85, resulting in a surprise of +9.47% [13]. - The company has successfully beaten consensus EPS estimates in all of the last four quarters [14].