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Analog Devices Set to Report Q2 Earnings: Here's What to Expect

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Analog Devices, Inc. (ADI - Free Report) is scheduled to report second-quarter fiscal 2025 results on May 22.

Analog Devices expects revenues of $2.50 billion (+/- $100 million). The Zacks Consensus Estimate is pegged at $2.50 billion, indicating an increase of 15.9% from the year-ago quarter’s figure.

ADI anticipates adjusted earnings per share of $1.68 (+/-10 cents). The consensus mark for earnings is pinned at $1.69 per share, indicating a 20.7% rise from the prior-year quarter’s figure. The estimate has remained unchanged over the past 60 days.

Analog Devices’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6%.

Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. Price and EPS Surprise

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

Factors to Consider for ADI’s Q2 Results

Analog Devices’ second-quarter performance is likely to have benefited from inventory normalization across both direct and distribution channels. Furthermore, the combination of improved bookings and lean inventory levels, following the end of the semiconductor industry's cyclical downturn, is expected to have supported top-line growth for ADI in the quarter to be reported.

Since ADI is highly exposed to the Chinese market, the recent U.S. policies of tariff reduction on the Chinese market are likely to have given a boost to its revenues in the to-be-reported quarter. Additionally, Analog Devices’ strong design wins in industrial automation, healthcare, automotive, and communications are expected to have boosted its second-quarter fiscal 2025 performance.

Secular growth trends across industrial automation, healthcare and surgical robotics, automotive sector, AI infrastructure and high-end consumer devices are likely to have driven ADI’s top line in the fiscal second quarter. 

However, macroeconomic challenges, including the protracted inflationary conditions and still-high interest rates, are likely to have posed challenges for the company in the to-be-reported quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Earnings Whispers for Analog Devices

Our proven model does not conclusively predict an earnings beat for Analog Devices this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Analog Devices has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Baidu (BIDU - Free Report) has an Earnings ESP of +8.67% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu shares have plunged 15% in the past year. BIDU is set to report its first-quarter 2025 results on May 21.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3 at present. 
NVIDIA shares have appreciated 42% in the past year. NVIDIA is slated to report its first-quarter 2025 results on May 28.

Salesforce (CRM - Free Report) has an Earnings ESP of +0.57% and carries a Zacks Rank #3 at present.
CRM shares have appreciated 1.3% in the past year. CRM is set to report its first-quarter 2025 results on May 28.

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