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Analog Devices Sees Robust Growth in Q3 2025

Analog Devices, Inc. (NASDAQ: ADI) announced its financial results for the fiscal third quarter of 2025, ending on August 2, 2025, revealing strong revenue figures of $2.88 billion. This figure represents a remarkable 25% increase from the same quarter the previous year, indicating strong demand across all its end markets.

CEO Vincent Roche expressed confidence in the company's performance, stating, "Despite ongoing geopolitical challenges, our revenue and earnings per share surpassed our expectations. The demand for our products remains robust, and our steadfast commitment to innovation is positioning us well for future growth in the intelligent physical edge sector."

The company reported a gross margin of $1.79 billion for the quarter, which corresponds to a gross margin percentage of 62.1%. Furthermore, the operating income soared to $818 million, representing a 67% increase year-over-year. This success translates to a diluted earnings per share of $1.04, up from $0.79 from the previous year.

In terms of cash flow, Analog Devices showcased an impressive operating cash flow of $4.2 billion, constituting 40% of its annual revenue, and a free cash flow of $3.7 billion, or 35% of revenue over the trailing twelve months. During this period, the company returned $1.6 billion to its shareholders, distributing $0.5 billion in dividends and repurchasing $1.1 billion in stocks during the third quarter.

CFO Richard Puccio noted positive trends in bookings, particularly in the industrial sector, which supports continued growth into the fourth quarter. "The positive results in Q3 and our outlook for Q4 put us in a strong position to end fiscal 2025 successfully," he stated.

Breakdown of Financial Results

Fiscal Q3 2025 Financial Summary:

• - Revenue: $2,880 million (up 25% from Q3 2024)
• - Gross Margin: $1,790 million (up 36%)
• - Operating Income: $818 million (up 67%)
• - Diluted EPS: $1.04 (up 32%)
• - Dividend Declared: $0.99 per share

Market Outlook

For the upcoming fourth quarter of fiscal 2025, Analog Devices is predicting revenue to reach approximately $3.0 billion, with a slight margin of +/- $100 million. The company anticipates an operating margin of about 30.5% and adjusted earnings per share of $2.22, indicating ongoing financial health and stability.

The company's robust performance is a testament not just to its diverse product portfolio, but also to its adaptable business model, which has proven resilient in navigating market uncertainties tied to tariffs and economic fluctuations. This ability to adapt has allowed for consistent returns to its shareholders even amidst external pressures.

With about $9 billion in revenue anticipated for FY 2024 and a workforce of approximately 24,000 employees globally, Analog Devices continues to stay at the forefront of semiconductor innovation. By integrating analog, digital, and software technologies, the firm is well-positioned to advance digitization across sectors such as manufacturing, mobility, and healthcare, contributing to solutions aimed at addressing pressing global issues including climate change.

In conclusion, the promising figures from Analog Devices serve not only as an affirmation of its market leadership but also as an example of how organizations can thrive in challenging environments through innovation and focused strategies. Investors and market analysts will undoubtedly be keen to see how the company navigates future challenges while capitalizing on emerging growth opportunities.