Analog Devices Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did ADI Beat Earnings? Q4 2025 Results
Analog Devices closed out fiscal 2025 on a strong note, posting fourth-quarter revenue of $3.08 billion, up 25.9% year-over-year and ahead of the $3.02 billion consensus, while adjusted diluted EPS of $2.26 edged past the $2.23 estimate by 1.13%. The quarter's momentum was broad-based, with Communications and Industrial markets leading the recovery, the former growing 37% year-over-year, helping drive GAAP operating margin expansion of 740 basis points to 30.7%. Cash generation reinforced the headline results, with free cash flow of $1.49 billion representing 48% of revenue, enabling the company to return $1.17 billion to shareholders in the quarter alone through buybacks and dividends. UBS lifted its price target to $320 following the results, reflecting continued confidence in the cyclical and secular tailwinds supporting ADI's growth trajectory. Looking ahead, management guided Q1 fiscal 2026 revenue to $3.10 billion, plus or minus $100 million, with adjusted EPS of $2.29, signaling steady demand even as macro and trade-related uncertainties temper the outlook for the full fiscal year.
- Year-over-year revenue growth across all four end markets
- Communications and Industrial markets led Q4 growth at 37% and 34% YoY respectively
- Gross margin expansion of 510 basis points YoY to 63.1% GAAP
- Adjusted operating margin expanded 240 bps YoY to 43.5%
- Healthy bookings trends continued in Q4
- Operating cash flow reached 55% of revenue in Q4
“ADI's strong fourth quarter capped a robust year of both cyclical and idiosyncratic growth. These results reflect the strength and resilience of our business model, and our intense commitment to leveraging superior technology and domain expertise to solve our customers' toughest problems. Our keen focus on our customers' market success has enabled us to build a deep trust that pays dividends in the form of strong, profitable growth and a fast-growing design pipeline. As such, we remain firmly confident in our ability to deliver sustained, long-term value for shareholders.”
Analog Devices CEO, on the earnings call
Forward Guidance & Outlook
For Q1 fiscal 2026 (three months ending January 31, 2026), ADI forecasts revenue of $3.1 billion (+/- $100 million), reported operating margin of approximately 31.0% (+/- 130 bps), adjusted operating margin of approximately 43.5% (+/- 100 bps), reported EPS of $1.60 (+/- $0.10), and adjusted EPS of $2.29 (+/- $0.10). Tax rate expected at 12%-14%. CFO noted healthy bookings trends with Industrial growth and notable Communications strength, while acknowledging macro uncertainty could influence the shape of fiscal 2026. Management believes ADI is well positioned to capitalize on the ongoing cyclical recovery and secular growth opportunities.
ADI YoY Financials
ADI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.