ADI's Consumer Revenues Rise 19% Y/Y in FY25: More Growth Ahead?

Analog Devices ADI is gaining from the growing market of personal and professional entertainment systems, led by the rise in demand for high-quality consumer electronics products with premium user interfaces, high-quality audio output for music and high-resolution image sensors.

Analog Devices offers audio processing algorithms that combine analog, power, digital software and machine learning for advanced environmental awareness and adaptive noise cancellation. This technology is used for improving voice calling clarity and listening experiences in earbuds and headphones like Pure Voice for noise suppression and voice capture.

ADI’s analog, digital and mixed signal processors are also benefiting from traction in modern consumer electronics products like portable hearables, wearables, gaming, augmented reality and virtual reality products that require high-performance integrated chips to deliver a feature-rich consumer experience with good battery management.

ADI’s consumer segment grew 18.8% year over year in fiscal 2025. Throughout 2026, ADI will be able to capitalize on the strong hearables market, which is expected to witness a CAGR of 18.5% from 2025 to 2035, per a report by Market Research Future. The wearables market is expected to witness a CAGR of 13.6% from 2025 to 2030, per a report by Grand View Research.

Analog Devices also supplies semiconductor products for the smartphone market, which is likely to witness a CAGR of 7.3% till 2029, per Fortune Business Insights report. This multi-dimensional growth story is further established by the Semiconductor Industry Association’s November 2025 growth rate, which came in at 29.8% year over year, per this report.

How Competitors Fare Against Analog Devices

Texas Instruments TXN and NXP Semiconductors NXPI compete within the consumer applications segment with Analog Devices. Texas Instruments competes with ADI in analog, digital and mixed signal chains, precision sensing, and power management for consumer electronics products.

NXP Semiconductor is one of the leading solution providers of analog and mixed-signal chips serving mobile, connectivity, and consumer applications. NXP Semiconductor competes in analog front-end, power management, and mixed signal for consumer devices, especially in mobile and IOT markets.

ADI’s Price Performance, Valuation and Estimates

Shares of ADI have gained 24.8% in the past six months compared with the Semiconductor - Analog and Mixed industry’s growth of 18.3%.

ADI 6-Month Performance Chart

From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 11.28X, higher than the industry’s average of 8.82X.

ADI Forward 12-Month (P/S) Valuation Chart

The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 28.5% and 12.85%, respectively. The consensus estimate for fiscal 2025 and 2026 has remained unchanged in the past seven days.

ADI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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