Analog Devices (NASDAQ:ADI) shares are trading higher in the premarket session on Wednesday after the company reported fiscal third-quarter results.
The company’s quarterly revenue increased 25% year-on-year (Y/Y) to $2.88 billion, beating the analyst consensus estimate of $2.76 billion. Adjusted EPS of $2.05 beat the analyst consensus estimate of $1.95.
Analog Devices’ Industrial revenue grew by 23% Y/Y to $1.29 billion. Automotive revenue climbed 22% Y/Y to $850.6 million.
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Consumer revenue grew by 21% to $372.2 million, and Communications revenue increased by 40% to $372.5 million.
The adjusted gross margin improved by 130 bps to 69.2%. The adjusted operating margin climbed by 100 bps to 42.2%.
Analog Devices held $3.47 billion in cash and equivalents as of August 2, 2025, generating $1.17 billion in operating cash flow.
The Analog Devices Board declared a quarterly cash dividend of 99 cents per outstanding share of common stock.
“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. The company’s relentless focus on cutting-edge innovation positions us to capitalize on the growth of the intelligent physical edge. In addition, our diverse and resilient business model enables ADI to navigate various market conditions and consistently create long-term value for our shareholders.”
CFO Richard Puccio added, “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.”
Analog Devices’ stock has gained close to 9% year-to-date as it grapples with challenges in the semiconductor industry, including the Trump administration’s tariffs and China trade policies.
Outlook
Analog Devices expects fiscal fourth-quarter 2025 revenue of $2.90 billion-$3.10 billion, above the analyst consensus estimate of $2.81 billion.
The company projects quarterly adjusted EPS of $2.12-$2.32 against the analyst consensus estimate of $2.03.
Price Action: ADI stock is trading higher by 3.92% to $239.48 premarket at last check Wednesday.
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