Analog Devices Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Analog Devices ADI reported fourth-quarter fiscal 2025 non-GAAP earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 1.8%. This company reported earnings of $1.67 per share in the year-ago period.

Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.8%.

Analog Devices’ fourth-quarter fiscal 2025 revenues of $3.08 billion beat the Zacks Consensus Estimate by 2.2%. The top line increased 26% from the year-ago quarter’s revenues of $2.44 billion.

Analog Devices, Inc. Price, Consensus and EPS Surprise

Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote

Analog Devices’ Q4 Details

Industrial: Revenues from this segment were $1.43 billion, representing 46% of total revenues and reflecting 34% year-over-year growth.

Automotive: Revenues reached $852.2 million (or 28% of total revenue), up 19% year over year.

Consumer: The segment generated $407.5 million (or 13% of revenue), marking a 7% increase compared with the same quarter last year.

Communications: Revenues came in at $389.8 million, accounting for 13% of total revenues and rising 37% year over year.

The adjusted gross margin expanded 190 basis points to 69.8%, while the adjusted operating margin was 43.5%, up 240 basis points year over year.

ADI’s Balance Sheet and Cash Flows

As of Nov. 1, 2025, cash and cash equivalents were approximately $3 billion, up from $2.32 billion as of Aug. 2, 2025. The company also held $1.15 billion in short-term investments during the fourth quarter. 

Long-term debt was $8.15 billion compared with $8.14 billion at the end of the previous quarter.

Analog Devices generated $1.7 billion in operating cash flow and $1.48 billion in free cash flow during the fourth quarter of fiscal 2025. In fiscal 2025, it generated operating and free cash flows of $4.81 billion and $4.28 billion, respectively.

In the fourth quarter, the company returned $1.17 billion to shareholders, comprising $487 million in dividends and $680 million in share repurchases. In fiscal 2025, it paid $1.9 billion in dividends and bought back shares worth $2.2 billion.

ADI Initiates Q1 FY26 Guidance

For the first quarter of fiscal 2026, management expects revenues of $3.1 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.92 billion, indicating year-over-year growth of 20.7%.

The company projects a reported operating margin of approximately 31% (+/-130 bps) and an adjusted operating margin of about 43.5% (+/-100 bps).

Reported earnings are anticipated to be $1.60 (+/-$0.10) per share, while adjusted earnings are expected to be $2.29 (+/-$0.10) per share. The consensus mark for the same is pinned at $2.11 per share.

Zacks Rank & Stocks to Consider 

Currently, ADI carries a Zacks Rank #3 (Hold).

Silicon Laboratories SLAB, Semtech SMTC and MACOM Technology Solutions MTSI are some better-ranked stocks that investors can consider from the broader Zacks Semiconductor - Analog and Mixed industry. Silicon Laboratories, Semtech and MACOM Technology Solutions carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Silicon Laboratories’s full-year 2025 earnings has been revised upward by 28.6% to 9 cents per share over the past seven days and suggests a year-over-year increase of 152.3%. Silicon Laboratories shares have declined 0.5% year to date.

The Zacks Consensus Estimate for Semtech’s fiscal 2026 earnings is pegged at $1.66 per share, unchanged over the past 60 days, indicating an 88.6% year-over-year increase. Semtech shares have soared 15.8% year to date.

The Zacks Consensus Estimate for MACOM Technology Solutions’ fiscal 2026 earnings has been revised upward by 3.2% to $4.16 per share over the past seven days, suggesting a year-over-year increase of 19.9%. MACOM Technology Solutions shares have surged 27.7% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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