Analog Devices jumps as Q3 results, guidance top expectations

Published 20/08/2025, 12:38
© Reuters

Investing.com -- Analog Devices, Inc. shares jumped more than 4% premarket on Wednesday after the semiconductor company reported third-quarter earnings and revenue that exceeded analyst expectations, while also providing an upbeat outlook for the current quarter.

The company posted adjusted earnings per share of $2.05 for the third quarter, beating the analyst estimate of $1.95. Revenue came in at $2.88 billion, surpassing the consensus expectation of $2.76 billion and representing a 25% increase YoY. The strong performance was driven by double-digit growth across all end markets despite ongoing geopolitical challenges.

"Despite geopolitical challenges, ADI’s third-quarter revenue and earnings per share exceeded the high end of our expectations," stated CEO and Chair Vincent Roche. "While tariffs and trade fluctuations are creating market uncertainty, the demand for ADI’s products remains robust."

Looking ahead, Analog Devices (NASDAQ:ADI) provided fourth-quarter guidance that topped analyst forecasts. The company expects adjusted EPS of $2.12-$2.32, with the midpoint of $2.22 exceeding the consensus estimate of $2.03. Fourth-quarter revenue is projected to be $2.9-$3.1 billion, with the midpoint of $3 billion above the consensus of $2.82 billion.

The company’s financial position remains strong, with operating cash flow of $4.2 billion and free cash flow of $3.7 billion on a trailing twelve-month basis, representing 40% and 35% of revenue, respectively. During the third quarter, Analog Devices returned $1.6 billion to shareholders through $0.5 billion in dividends and $1.1 billion in share repurchases.

CFO Richard Puccio noted, "We closed the third quarter with continued backlog growth and healthy bookings trends, notably in the Industrial end market. Our favorable third quarter results and outlook for continued growth in the fourth quarter position us well to finish fiscal 2025 from a position of strength."

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