Analog Devices delivered a quarter that surpassed Wall Street’s expectations, with management attributing these results to robust demand across all key end markets, particularly industrial, automotive, and communications. CEO Vincent Roche cited the company’s focus on research and development and success in capturing value from new products as core contributors to the performance. Roche highlighted that “AI, automation, and the drive for efficient energy management” were among the most powerful forces behind growth, with industrial and data center segments performing especially well.
Is now the time to buy ADI? Find out in our full research report (it’s free for active Edge members).
Analog Devices (ADI) Q3 CY2025 Highlights:
- Revenue: $3.08 billion vs analyst estimates of $3.01 billion (25.9% year-on-year growth, 2.1% beat)
- Adjusted EPS: $2.26 vs analyst estimates of $2.23 (1.1% beat)
- Adjusted EBITDA: $1.83 billion vs analyst estimates of $1.81 billion (59.6% margin, 1.4% beat)
- Revenue Guidance for Q4 CY2025 is $3.1 billion at the midpoint, above analyst estimates of $2.97 billion
- Adjusted EPS guidance for Q4 CY2025 is $2.29 at the midpoint, above analyst estimates of $2.18
- Operating Margin: 30.7%, up from 23.3% in the same quarter last year
- Inventory Days Outstanding: 133, in line with the previous quarter
- Market Capitalization: $130.5 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Analog Devices’s Q3 Earnings Call
- Vivek Arya (Bank of America Securities) asked about the segment drivers behind next quarter’s unusually strong guidance; CFO Richard Puccio detailed that industrial and communications will lead, while auto may see some pressure from tariffs.
- Joseph Moore (Morgan Stanley) inquired about resilience in the automotive segment and possible pre-buying effects; Puccio confirmed volumes were stronger than expected and noted continued caution due to short order lead times and tariff uncertainty.
- Stacy Rasgon (Bernstein Research) pressed on why gross margins are not expanding further despite higher utilization; Puccio explained that product mix, particularly a greater share of automotive, is limiting margin gains, while pricing remains stable.
- Timothy Arcuri (UBS) sought an update on Maxim integration synergies; CEO Vincent Roche noted accelerated contributions and is confident about reaching synergy targets ahead of schedule.
- Joshua Buchalter (TD Cowen) questioned whether exposure to data center and aerospace/defense is improving visibility; Puccio clarified that short lead times continue to limit forward visibility, despite growth in these sectors.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of industrial and data center growth, particularly as AI infrastructure investments scale, (2) continued margin performance as product and end-market mix shifts toward higher-value segments, and (3) the realization of Maxim integration synergies. Execution on new product launches and responsiveness to macroeconomic and tariff-related risks will also be critical for sustaining momentum.
Analog Devices currently trades at $267.03, up from $239.40 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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