ADI Reports 25% Revenue Growth in Q3 2025

By Greg Peters • Wednesday, August 20 15:45 • Permanent Link

Analog Devices, Inc. (ADI) has reported its fiscal third quarter 2025 financial results, highlighting a revenue of $2.88 billion, representing a 25% year-over-year growth. The company's operating cash flow reached $4.2 billion and free cash flow stood at $3.7 billion on a trailing twelve-month basis, accounting for 40% and 35% of revenue, respectively. Notably, ADI returned $1.6 billion to shareholders during the third quarter through $0.5 billion in dividends and $1.1 billion in repurchases.

In terms of specific financial metrics, the gross margin for this quarter was reported at $1.79 billion, indicating a 36% increase from the same period last year. The operating income for the quarter also saw a significant rise, reaching $818 million, reflecting a 67% increase from the prior year. Additionally, diluted earnings per share (EPS) stood at $1.04, marking a growth of 32% compared to the third quarter of 2024.

Adjusting for certain factors, the adjusted gross margin for the quarter was $1.995 billion, representing a 27% increase from the previous year. The adjusted operating income reached $1.215 billion, marking a 28% increase, and the adjusted diluted EPS was reported at $2.05, reflecting a 30% increase from the same period last year.

Looking at cash generation and return, net cash provided by operating activities for the trailing twelve months was reported at $4.162 billion, which represents 40% of revenue. Meanwhile, free cash flow for the same period stood at $3.678 billion, accounting for 35% of revenue.

In terms of cash return, ADI paid dividends amounting to $490 million and utilized $1.075 billion for stock repurchases during the third quarter. The total cash returned to shareholders during this period was $1.565 billion, bringing the total for the trailing twelve months to $3.473 billion.

Looking ahead, for the fourth quarter of fiscal year 2025, ADI is forecasting revenue of $3.0 billion, with reported operating margin expected to be approximately 30.5%. Adjusted operating margin is forecasted to be around 43.5%, with reported EPS projected to be $1.53 and adjusted EPS expected to be $2.22.

The market has reacted to these announcements by moving the company's shares 5.41% to a price of $242.91. For the full picture, make sure to review ANALOG DEVICES INC's 8-K report.

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