Analog Devices beats earnings and revenue expectations, shares rise

Published 22/05/2025, 12:36
© Reuters

Investing.com -- Analog Devices saw its stock gain more than 3% premarket on Thursday after reporting second-quarter fiscal 2025 results that beat analyst expectations and provided an optimistic outlook for the current quarter.

The semiconductor company posted adjusted earnings per share of $1.85, surpassing the analyst consensus of $1.70. Revenue for the quarter reached $2.64 billion, exceeding estimates of $2.51 billion and marking a 22% increase YoY.

ADI’s performance was driven by double-digit YoY growth across all end markets, reflecting an ongoing cyclical recovery. The company’s CEO, Vincent Roche, noted that the results came "against a backdrop of global trade volatility" and highlighted ADI’s "strength and resiliency."

For the third quarter, Analog Devices (NASDAQ:ADI) forecasts revenue between $2.65 billion and $2.85 billion, with the midpoint above the analyst consensus of $2.62 billion. The company expects adjusted EPS in the range of $1.82 to $2.02, also above the $1.82 consensus.

CFO Richard Puccio reported accelerated bookings across all end markets and regions, resulting in continued sequential backlog growth. He stated, "The improving demand signals we saw throughout our fiscal Q2 support our outlook for continued growth in Q3, and reinforce our view that we are in a cyclical upturn."

The company generated $819 million in operating cash flow during the quarter and returned $740 million to shareholders through dividends and stock repurchases. ADI’s board declared a quarterly cash dividend of $0.99 per share, payable on June 18, 2025.

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