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Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
Analog Devices posted Q3 EPS of $2.05, topping estimates and rising from $1.58 last year.
Revenues grew 25% Y/Y to $2.88B, led by double-digit gains in all key business segments.
ADI guides Q4 revenues of $3B and adjusted EPS of $2.22, above consensus expectations.
Analog Devices (ADI - Free Report) reported third-quarter fiscal 2025 non-GAAP earnings of $2.05 per share, which beat the Zacks Consensus Estimate by 6.2%. This company reported earnings of $1.58 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 5.6%.
Analog Devices’ second-quarter fiscal 2025 revenues of $2.88 billion beat the Zacks Consensus Estimate by 4.45%. The top line increased from the year-ago quarter’s $2.31 billion.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Industrial: Revenues from this segment were $1.29 billion, representing 45% of total revenues and reflecting 23% year-over-year growth.
Automotive: Revenues reached $850.6 million (or 30% of total revenue), up 22% year over year.
Consumer: The segment generated $372.2 million (or 13% of revenue), marking a 21% increase compared to the same quarter last year.
Communications: Revenues came in at $372.5 million, accounting for 13% of total revenues and rising 40% year over year.
The adjusted gross margin expanded 130 basis points to 69.2%, while the adjusted operating margin was 42.2%, up 100 basis points year over year.
ADI’s Balance Sheet and Cash Flows
As of Aug. 2, 2025, cash and cash equivalents were $2.32 billion, down from $2.38 billion as of May 3, 2025. The company also held $1.15 billion in short-term investments during the third quarter. Long-term debt was $8.14 billion compared with $6.65 billion at the end of the previous quarter.
Analog Devices generated $1.17 billion in operating cash flow and $1.09 billion in free cash flow during the third quarter of fiscal 2025.
The company returned $1.57 billion to shareholders, comprising $490 million in dividends and $1.08 billion in share repurchases.
ADI Releases Q4 Guidance
For the fourth quarter of fiscal 2025, management expects revenues of $3.0 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.79 billion, indicating year-over-year growth of 14%.
The company projects a reported operating margin of approximately 30.5% (+/-150 bps) and an adjusted operating margin of about 43.5% (+/-100 bps).
Reported earnings are anticipated to be $1.53 (+/-$0.10) per share, while adjusted earnings are expected to be $2.22 (+/-$0.10) per share. The consensus mark for the same is pinned at $1.98 per share.
Amphenol shares have gained 58.4%, year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings is pegged at $3.02 per share, up by 4 cents over the past seven days, suggesting a growth of 59.8% from the year-ago quarter’s reported figure.
Qualys shares have declined 5%, year to date. The Zacks Consensus Estimate for Qualys’s full-year 2025 earnings has been revised upward to $6.35 in the past 30 days, suggesting year-over-year growth of 3.6%.
F5 shares have gained 25.4%, year to date. The Zacks Consensus Estimate for F5’s full-year fiscal 2025 earnings is pegged at $15.38 per share, implying a rise of 15% from the year-ago quarter’s levels.
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Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Analog Devices (ADI - Free Report) reported third-quarter fiscal 2025 non-GAAP earnings of $2.05 per share, which beat the Zacks Consensus Estimate by 6.2%. This company reported earnings of $1.58 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 5.6%.
Analog Devices’ second-quarter fiscal 2025 revenues of $2.88 billion beat the Zacks Consensus Estimate by 4.45%. The top line increased from the year-ago quarter’s $2.31 billion.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Analog Devices’ Q3 Details
Industrial: Revenues from this segment were $1.29 billion, representing 45% of total revenues and reflecting 23% year-over-year growth.
Automotive: Revenues reached $850.6 million (or 30% of total revenue), up 22% year over year.
Consumer: The segment generated $372.2 million (or 13% of revenue), marking a 21% increase compared to the same quarter last year.
Communications: Revenues came in at $372.5 million, accounting for 13% of total revenues and rising 40% year over year.
The adjusted gross margin expanded 130 basis points to 69.2%, while the adjusted operating margin was 42.2%, up 100 basis points year over year.
ADI’s Balance Sheet and Cash Flows
As of Aug. 2, 2025, cash and cash equivalents were $2.32 billion, down from $2.38 billion as of May 3, 2025. The company also held $1.15 billion in short-term investments during the third quarter. Long-term debt was $8.14 billion compared with $6.65 billion at the end of the previous quarter.
Analog Devices generated $1.17 billion in operating cash flow and $1.09 billion in free cash flow during the third quarter of fiscal 2025.
The company returned $1.57 billion to shareholders, comprising $490 million in dividends and $1.08 billion in share repurchases.
ADI Releases Q4 Guidance
For the fourth quarter of fiscal 2025, management expects revenues of $3.0 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.79 billion, indicating year-over-year growth of 14%.
The company projects a reported operating margin of approximately 30.5% (+/-150 bps) and an adjusted operating margin of about 43.5% (+/-100 bps).
Reported earnings are anticipated to be $1.53 (+/-$0.10) per share, while adjusted earnings are expected to be $2.22 (+/-$0.10) per share. The consensus mark for the same is pinned at $1.98 per share.
Zacks Rank & Other Stocks to Consider
Currently, ADI carries a Zacks Rank #2 (Buy).
Amphenol (APH - Free Report) , Qualys (QLYS - Free Report) and F5 (FFIV - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Amphenol, Qualys and F5 sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol shares have gained 58.4%, year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings is pegged at $3.02 per share, up by 4 cents over the past seven days, suggesting a growth of 59.8% from the year-ago quarter’s reported figure.
Qualys shares have declined 5%, year to date. The Zacks Consensus Estimate for Qualys’s full-year 2025 earnings has been revised upward to $6.35 in the past 30 days, suggesting year-over-year growth of 3.6%.
F5 shares have gained 25.4%, year to date. The Zacks Consensus Estimate for F5’s full-year fiscal 2025 earnings is pegged at $15.38 per share, implying a rise of 15% from the year-ago quarter’s levels.