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.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Semtech Corporation (SMTC) : Free Stock Analysis Report
Silicon Laboratories, Inc. (SLAB) : Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
