Analog Devices Seeks to Double Automation Business by 2030

Analog Devices aims to double its automation business by 2030, focusing on robotics and industrial growth. The company's Q3 2025 earnings exceeded expectations, achieving double-digit year-over-year growth across all end markets.

Analog Devices (ADI), a leading manufacturer of analog chips, reported its Q3 2025 earnings, which exceeded market expectations. The company achieved double-digit year-over-year growth across all end markets, with industrial automation emerging as a key driver.

The company's revenue for Q3 2025 was $2.88 billion, up 9% sequentially and 25% year-over-year, surpassing analyst estimates. Industrial automation contributed 45% of the revenue, growing 12% sequentially and 23% year-over-year. The automotive segment, which accounted for 30% of revenue, saw a 2% sequential decline but a 22% year-over-year increase. Communications and consumer segments each accounted for 13% of revenue, with communications up 18% sequentially and 40% year-over-year, and consumer up 16% sequentially and 21% year-over-year [1].

CEO Vincent T. Roche highlighted the company's focus on advanced robotics and industrial growth, noting that the industrial automation business is expected to double by 2030. Roche emphasized the strategic importance of real-time Intelligent Edge data and next-generation robotics, citing partnerships with companies like Teradyne Robotics. The company is also expanding into agriculture and healthcare robotics, with a particular focus on automated surgical procedures [1].

CFO Richard C. Puccio provided guidance for Q4 2025, expecting revenue of $3 billion, plus or minus $100 million, and adjusted EPS of $2.22, plus or minus $0.10. Puccio noted that industrial, communications, and consumer segments are expected to grow, while automotive is expected to decline. Operating margin is expected to increase to 43.5%, plus or minus 100 basis points [1].

Analysts were generally positive, with questions focusing on the sustainability of growth, margin drivers, and sector dynamics. However, there was some skepticism regarding the sustainability of recent gains, particularly in relation to inventory levels and automotive pull-ins [1].

Overall, Analog Devices' strong Q3 2025 earnings and robust growth prospects, particularly in industrial automation, position the company for continued momentum. The company's commitment to doubling its automation business by 2030, strategic partnerships, and disciplined inventory management underpin expectations for a strong close to fiscal 2025 and a solid start to the next fiscal year [1].

References:
[1] https://seekingalpha.com/news/4487566-analog-devices-targets-doubling-automation-business-by-2030-while-advancing-robotics-and