Companies /Technology

Analog Devices Inc

NASDAQ: ADI Semiconductors
$362.14
â–² $0.36 (+0.10%) today
Markets closed · 6:40pm ET

Q3 2025 Earnings

Reported Aug 20, 2025, 7:02am ET · SEC source
$2.05
Beat +5.13%
EPS · est. $1.95
$2.9B
Beat +4.40%
Revenue · est. $2.8B
−3.5%
Trailing market
ADI vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Aug 20Aug 21report 7:02am ETearnings−0.7%+6.3%
0+3%+6%Aug 20Aug 21earnings−0.7%+6.3%
ADI +6.3%S&P 500 −0.7%
0+3%+6%Aug 20Aug 21report 7:02am ETearnings−1.1%+6.3%
0+3%+6%Aug 20Aug 21earnings−1.1%+6.3%
ADI +6.3%NASDAQ −1.1%
−4%0+4%+8%Aug 19Aug 27report 7:02am ETearnings+0.9%+7.5%
−4%0+4%+8%Aug 19Aug 27earnings+0.9%+7.5%
ADI +7.5%S&P 500 +0.9%
−4%0+4%+8%Aug 19Aug 27report 7:02am ETearnings+0.5%+7.5%
−4%0+4%+8%Aug 19Aug 27earnings+0.5%+7.5%
ADI +7.5%NASDAQ +0.5%
+6.26%
Day of report
+0.85%
Next session
+4.34%
One week
+1.01%
30 days

S&P 500 over the same 30 days: +4.50%.

Did ADI Beat Earnings? Q3 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$800.0M$1.6B$2.4B$2.3B$2.9BRevenue$1.3B$1.8BGross Profit$491.3M$818.0MOperating Income$392.2M$518.5MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

ADI Revenue by Segment

Industrial$1.3B+23.0%
Automotive$850.6M+22.0%
Communications$372.5M+40.0%
Consumer$372.2M+21.0%

Figures from SEC filings and company reports. Not investment advice.