Analog Devices (ADI) Q3 2025 Earnings
How Did ADI Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +4.50%.
Did ADI Beat Earnings? Q3 2025 Results
Yes. Analog Devices reported Q3 2025 earnings of $2.05 a share on Aug 20, 2025, beating the $1.95 consensus estimate by 5.1%. Revenue was $2.9B against a $2.8B estimate.
Analog Devices delivered a strong fiscal third quarter, beating Wall Street expectations on both the top and bottom lines as broad-based demand recovery powered results well above guidance. The semiconductor maker posted adjusted diluted EPS of $2.05, ahead of the $1.95 consensus estimate by 5.08%, while revenue of $2.88 billion topped expectations by 4.40% and rose 24.6% from a year ago, with double-digit growth across all four end markets. Communications led the way at 40% year-over-year growth, while Industrial, Automotive, and Consumer each contributed meaningfully to the rebound. Margin expansion added further credibility to the quarter, with adjusted gross margin reaching 69.2% and adjusted operating margin climbing to 42.2%. Free cash flow of $1.09 billion underscored the underlying earnings quality. Against a backdrop of ongoing tariff and trade uncertainty that has clouded the broader semiconductor sector, ADI's management struck a confident tone, guiding fiscal Q4 revenue to $3.00 billion and adjusted EPS to $2.22, signaling that the company's recovery cycle still has room to run.
- Double-digit year-over-year growth across all four end markets
- Communications end market led with 40% YoY growth
- Industrial end market showed continued backlog growth and healthy bookings trends
- Gross margin expansion of 540 basis points YoY on a GAAP basis
- Operating margin expansion of 720 basis points YoY on a GAAP basis
“Despite geopolitical challenges, ADI's third-quarter revenue and earnings per share exceeded the high end of our expectations.”
Analog Devices CEO, on the earnings call
What Was Analog Devices's Outlook in Q3 2025?
For fiscal Q4 2025 (three months ending November 1, 2025), ADI forecasts revenue of $3.0 billion (+/- $100 million), reported operating margin of approximately 30.5% (+/-150 bps), adjusted operating margin of approximately 43.5% (+/-100 bps), nonoperating expenses of approximately $55-$60 million, tax rate of 11%-13%, reported EPS of $1.53 (+/- $0.10), and adjusted EPS of $2.22 (+/- $0.10). CFO noted continued backlog growth and healthy bookings trends, particularly in the Industrial end market, positioning the company to finish fiscal 2025 from a position of strength.
ADI YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.9B | $2.3B | +24.6% |
| Gross Profit | $1.8B | $1.3B | +36.5% |
| Operating Income | $818.0M | $491.3M | +66.5% |
| Net Income | $518.5M | $392.2M | +32.2% |
ADI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.