Analog Devices 2025 Q4 Earnings Strong Performance with 64.8% Net Income Growth

Analog Devices reported fiscal 2025 Q4 earnings on Nov 25, 2025, with revenue rising 25.9% to $3.08 billion, surpassing the $3.02 billion forecast. The company’s EPS surged 67% to $1.61, while net income grew 64.8% to $787.74 million. Guidance for Q1 2026 exceeded expectations, with EPS projected at $2.29 and revenue of $3.1 billion.

Revenue

Analog Devices’ revenue surged to $3.08 billion in Q4 2025, a 25.9% increase from $2.44 billion in Q4 2024. The industrial segment led with $1.43 billion in revenue, reflecting a 34% year-over-year growth driven by factory automation, defense, and energy infrastructure. The communications division also outperformed, generating $389.8 million, a notable 2.6% beat over the $380.60 million forecast.

Earnings/Net Income

Earnings per share (EPS) soared 67% to $1.61 in Q4 2025, compared to $0.96 in the prior year. Net income expanded to $787.74 million, a 64.8% increase from $478.07 million in Q4 2024. The company has maintained profitability for over 20 years, underscoring its operational resilience and strong gross and operating margins.

Post-Earnings Price Action Review

The strategy of buying Analog Devices shares after a quarterly revenue drop on the earnings release date and selling 30 days later resulted in poor performance, with a CAGR of -0.43% and an excess return of -61.99%, significantly underperforming the benchmark return of 60.81%. While the strategy had a maximum drawdown of 0.00%, indicating no significant losses during the backtest period, its Sharpe ratio of -0.02 highlighted unfavorable risk-adjusted returns.

CEO Commentary

Vincent Roche, CEO of Analog Devices, emphasized the company’s strategic focus on AI, software, and digital capabilities during the earnings call. He noted sustained growth in industrial, automotive, and communications sectors, along with a record free cash flow of $4.3 billion for fiscal 2025.

Guidance

Analog Devices projected Q1 2026 revenue of $3.1 billion and EPS of $2.29, exceeding analyst estimates of $2.96 billion and $2.18, respectively. The company also reiterated confidence in capitalizing on the ongoing cyclical recovery, despite macroeconomic uncertainties.

Additional News

Analog Devices declared a $0.99 quarterly dividend, maintaining its payout for four consecutive quarters, with a forward yield of 1.65%. The company also announced a strategic collaboration with ASE Technology Holding Co., involving the transfer of its Penang, Malaysia, manufacturing facility to streamline operations. Additionally, Evercore ISI lowered its price target for ADI to $282 from $303, while maintaining an Outperform rating, citing the firm’s “best-in-class secular exposure” and long-term growth potential.