Analog Devices(ADI) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for the second quarter of fiscal 2025 was $2.64 billion, representing a 22% year-over-year increase[4] - Gross margin increased to $1.61 billion with a gross margin percentage of 61.0%, up 630 basis points from the previous year[4] - Operating income rose to $678 million, reflecting a 76% increase year-over-year, with an operating margin of 25.7%, up 780 basis points[4] - Diluted earnings per share (EPS) for the quarter was $1.14, an 87% increase compared to $0.61 in the same quarter last year[4] - Net income for the six months ended May 3, 2025, was $961,086, up from $764,969 in the same period last year, reflecting a 26% increase[27] - Operating income for the six months ended May 3, 2025, was $1,169,257, compared to $972,087 for the same period in 2024, representing a 20% increase[30] - Adjusted diluted EPS for the six months ended May 3, 2025, was $3.48, compared to $3.13 in the same period last year[32] Cash Flow and Shareholder Returns - The company generated operating cash flow of $3.9 billion and free cash flow of $3.3 billion over the trailing twelve months, representing 39% and 34% of revenue, respectively[3] - The company returned $0.7 billion to shareholders through dividends and stock repurchases during the second quarter[3] - Free cash flow for the trailing twelve months was $3,293,589, which is 34% of revenue, indicating strong cash generation capabilities[33] Future Projections - For the third quarter of fiscal 2025, the company forecasts revenue of $2.75 billion, with an expected operating margin of approximately 27.2%[6] - The adjusted diluted EPS is projected to be $1.92 for the third quarter, reflecting a strong outlook for continued growth[6] - The company projects revenue of $2.75 billion for the three months ending August 2, 2025, with an operating margin of 27.2%[35] Market Demand and Growth - Bookings accelerated across all end markets and regions, indicating a cyclical recovery and strong demand signals[2] - The automotive segment revenue grew by 24% year-over-year to $849,505 for the three months ended May 3, 2025, indicating strong demand in this market[30] Expenses and Investments - Research and development expenses increased to $441,837 for the three months ended May 3, 2025, up from $354,862 in the same period last year, highlighting the company's commitment to innovation[30] - Capital expenditures for the three months ended May 3, 2025, were $90,268, indicating ongoing investment in growth initiatives[33] - The company reported acquisition-related expenses of $220,277 for the three months ended May 3, 2025[32] Asset Management - Total current assets as of May 3, 2025, were $5,588,537, compared to $5,484,654 as of November 2, 2024, showing a slight increase in liquidity[25] - The company’s total assets decreased to $47,344,487 as of May 3, 2025, from $48,228,277 as of November 2, 2024, indicating a reduction in overall asset base[25] - Cash and cash equivalents at the end of the period were $2,376,235, an increase from $1,991,342 at the end of the previous year[27] Taxation - The effective income tax rate for the six months ended May 3, 2025, was 9.5%, slightly higher than 8.7% in the previous year[32] - The projected tax rate for the upcoming quarter is estimated to be between 11% and 13%[35]