Analog Devices(US:ADI)2025-11-25 12:03Financial Performance - Fourth quarter revenue reached $3.08 billion, representing a 26% year-over-year increase, with growth across all end markets, particularly in Communications and Industrial[4] - Fiscal 2025 revenue totaled $11.0 billion, up 17% compared to fiscal 2024[4] - Revenue for the three months ended November 1, 2025, was $3,076,117, representing a 26% increase from $2,443,205 for the same period last year[25] - The company reported a total of $11,019,707 in revenue for the twelve months ended November 1, 2025, marking a 17% increase from $9,427,157 in the prior year[32] Profitability Metrics - Adjusted diluted earnings per share for fiscal 2025 increased by 22% to $7.79 compared to $6.38 in the previous year[5] - Net income for the three months ended November 1, 2025, was $787,739, compared to $478,072 for the same period last year, reflecting a 64% increase[25] - Operating income for the twelve months ended November 1, 2025, reached $2,932,496, a significant rise from $2,032,798 in the previous year[25] - Adjusted operating income for the twelve months ended November 1, 2025, was $4,622,147, with an adjusted operating margin of 41.9%, compared to 40.9% in the previous year[34] Cash Flow and Shareholder Returns - Operating cash flow for fiscal 2025 was $4.8 billion, and free cash flow was $4.3 billion, accounting for 44% and 39% of revenue, respectively[4] - The company returned 96% of free cash flow to shareholders in fiscal 2025, including $2.2 billion in share repurchases and $1.9 billion in dividends[4] - The company achieved free cash flow of $4,278,650 for the trailing twelve months, which is 39% of revenue[35] Margins and Expenses - The adjusted operating margin for fiscal 2025 was 41.9%, an increase of 100 basis points from the previous year[5] - Gross margin for the twelve months ended November 1, 2025, was $6,773,478, up from $5,381,343, indicating a strong year-over-year growth[25] - For the three months ended November 1, 2025, the company reported a gross margin of $1,941,817, representing a gross margin percentage of 63.1%, up from 58.0% in the same period last year[34] - Operating expenses for the three months ended November 1, 2025, were $996,605, accounting for 32.4% of revenue, a decrease from 34.7% in the same period last year[34] Future Outlook - The company forecasts first quarter fiscal 2026 revenue of $3.1 billion, with an expected operating margin of approximately 31.0%[7] - The projected earnings per share for the three months ending January 31, 2026, is $1.60 reported and $2.29 adjusted, reflecting adjustments related to acquisition expenses[37][38] Market Trends and Strategic Focus - The company emphasized strong bookings trends in the fourth quarter, particularly in the Industrial and Communications markets[3] - Management remains confident in capitalizing on ongoing cyclical recovery and secular growth opportunities despite macroeconomic uncertainties[3] Research and Development - Research and development expenses for the three months ended November 1, 2025, were $467,021, up from $378,903, indicating a focus on innovation[25] Balance Sheet Highlights - Total current assets increased to $7,108,061 as of November 1, 2025, compared to $5,484,654 a year earlier[27] - Long-term debt rose to $8,145,066 as of November 1, 2025, compared to $6,634,313 the previous year, reflecting increased financing activities[27] Tax and Nonoperating Expenses - The effective tax rate for the twelve months ended November 1, 2025, was 16.4%, compared to 8.0% in the previous year[34] - Nonoperating expense for the three months ended November 1, 2025, was $58,012, compared to $53,064 in the same period last year[34] Capital Expenditures - Capital expenditures for the trailing twelve months were $(533,552), impacting the free cash flow generation[35]