A month has gone by since the last earnings report for Analog Devices (ADI Quick QuoteADI - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Analog Devices due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Analog Devices, Inc. before we dive into how investors and analysts have reacted as of late.

Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Analog Devices 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’ 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 Q4 Guidance

For the fourth quarter of fiscal 2025, management expects revenues of $3.0 billion (+/- $100 million). 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 11.98% due to these changes.

VGM Scores

At this time, Analog Devices has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Analog Devices has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Analog Devices belongs to the Zacks Semiconductor - Analog and Mixed industry. Another stock from the same industry, M/A-Com (MTSI Quick QuoteMTSI - Free Report) , has gained 5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

M/A-Com reported revenues of $252.08 million in the last reported quarter, representing a year-over-year change of +32.3%. EPS of $0.90 for the same period compares with $0.66 a year ago.

For the current quarter, M/A-Com is expected to post earnings of $0.93 per share, indicating a change of +27.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for M/A-Com. Also, the stock has a VGM Score of B.