Analog Devices Q3 Revenue Surges 25% on Strong Industrial Demand and Robotics Expansion

Analog Devices reported Q3 FY25 revenue of $2.88 billion, up 25% YoY and 9% sequentially, with non-GAAP EPS of $2.05, a 30% YoY increase. The industrial segment accounted for 45% of total revenue, growing 12% sequentially and 23% YoY. The company emphasized its strategic focus on advanced robotics and automation, robust free cash flow, and provided revenue guidance of $3 billion plus or minus $100 million for Q4 FY25.

Analog Devices, Inc. (ADI) has delivered robust financial results for the third quarter of fiscal 2025, showcasing impressive growth and surpassing market expectations. The semiconductor leader's performance highlights its adaptability and strategic prowess in a challenging global landscape.

ADI reported a revenue of $2.88 billion for the quarter, up 25% year-over-year (YoY) and 9% sequentially, significantly exceeding the anticipated $2.76 billion [1]. This strong performance was driven by double-digit growth across all end markets, with the industrial segment accounting for 45% of total revenue, growing 12% sequentially and 23% YoY. The company's gross margin also saw a notable improvement, climbing from 56.7% to 62.1%, reflecting a substantial enhancement in operational efficiency [1].

In terms of earnings, ADI reported a diluted EPS of $1.04. When adjusted for acquisition-related expenses and other special charges, the adjusted diluted EPS stood at $2.05, surpassing the market expectation of $1.93. This adjusted figure marks a 30% YoY increase, highlighting the company’s effective cost management and strategic investments [1].

The CEO, Vincent Roche, emphasized the company’s ability to navigate geopolitical challenges and market uncertainties, attributing the strong performance to ADI’s commitment to innovation and its diversified business model. The company’s focus on cutting-edge solutions has positioned it well to leverage the growth of the intelligent physical edge, ensuring sustained value creation for shareholders [1].

Looking ahead, ADI has set a positive tone for the fourth quarter of fiscal 2025. The company forecasts revenue to be around $3.0 billion, with a possible variance of $100 million. At the midpoint of this outlook, ADI anticipates a reported operating margin of approximately 30.5% and an adjusted operating margin of 43.5%, indicating continued operational strength and efficiency [1].

The guidance for the fourth quarter also includes a projected reported EPS of $1.53, with an adjusted EPS expected to be $2.22. These figures reflect ADI’s confidence in maintaining its growth trajectory despite external challenges. The CFO, Richard Puccio, highlighted the sustained backlog growth and healthy booking trends, particularly in the Industrial end market, as key drivers for the optimistic outlook [1].

Additionally, ADI’s capital allocation strategy remains robust, with plans for continued shareholder returns through dividends and stock repurchases. The company declared a quarterly cash dividend of $0.99 per share, reinforcing its commitment to delivering value to shareholders. As ADI continues to invest in innovation and strategic initiatives, it remains well-positioned to capitalize on emerging opportunities and navigate the complexities of the global market [1].

References:
[1] https://tokenist.com/analog-devices-inc-adi-reports-better-than-expected-q3-results/
[2] https://finance.yahoo.com/news/analog-devices-inc-adi-q3-070805382.html
[3] https://www.ainvest.com/news/analog-devices-2025-q3-earnings-net-income-surges-32-2-2508/