Analog Devices Reports Fiscal Second Quarter 2025 Financial Results

Analog Devices, Inc., a global semiconductor leader, has released its financial results for the fiscal second quarter of 2025, which ended on May 3, 2025. The company reported strong performance across all end markets, reflecting a robust cyclical recovery and the resilience of its business model.

Financial Highlights

For the second quarter of fiscal 2025, Analog Devices reported:

• Revenue of $2.64 billion, representing a 22% year-over-year increase from $2.16 billion in the same period last year.
• Gross margin of $1.61 billion, up 37% from $1.18 billion in the previous year, with a gross margin percentage of 61.0%.
• Operating income of $678 million, a 76% increase from $386 million in the prior year, with an operating margin of 25.7%.
• Diluted earnings per share (EPS) of $1.14, up 87% from $0.61 in the same quarter last year.
• Adjusted gross margin of $1.83 billion, up 27% from $1.44 billion, with an adjusted gross margin percentage of 69.4%.
• Adjusted operating income of $1.09 billion, a 29% increase from $842 million, with an adjusted operating margin of 41.2%.
• Adjusted diluted EPS of $1.85, up 32% from $1.40 in the previous year.

Business and Operational Highlights

CEO Vincent Roche highlighted the company's performance amidst global trade volatility, emphasizing the strength and resiliency of ADI's business model. CFO Richard Puccio noted that second-quarter bookings accelerated across all end markets and regions, resulting in continued sequential backlog growth.

Strategic Initiatives and Corporate Developments

During the second quarter, Analog Devices returned $0.7 billion to shareholders through dividends and repurchases. The company also reported operating cash flow of $3.9 billion and free cash flow of $3.3 billion on a trailing twelve-month basis, representing 39% and 34% of revenue, respectively.

Management's Perspective

Vincent Roche, CEO and Chair, stated, "ADI delivered second-quarter revenue and earnings per share above the high end of guidance. Our performance reflects the ongoing cyclical recovery and the strength and resiliency of our business model. Our unwavering commitment to innovation and customer success enables ADI to continue extending our leadership at the increasingly AI-driven Intelligent Edge, delivering exceptional value for shareholders over both the near- and long-terms."

Future Outlook

For the third quarter of fiscal 2025, Analog Devices forecasts revenue of $2.75 billion, +/- $100 million. At the midpoint of this revenue outlook, the company expects a reported operating margin of approximately 27.2%, +/-150 bps, and an adjusted operating margin of approximately 41.5%, +/-100 bps. Reported EPS is projected to be $1.23, +/-$0.10, and adjusted EPS is expected to be $1.92, +/-$0.10.

SEC Filing: ANALOG DEVICES INC [ ADI ] - 8-K - May. 22, 2025