Analog Devices, Inc. (NASDAQ: ADI) has reported strong financial results for the fourth quarter and fiscal year 2025. The company's fourth-quarter revenue reached $3.08 billion, marking a 26% year-over-year growth from the previous period. For the entire fiscal year 2025, Analog Devices achieved revenue of $11.0 billion, reflecting a 17% increase compared to 2024.
The company's gross margin for the fourth quarter was $1.942 billion, representing a substantial 37% increase from the same period in the previous year. The gross margin percentage also saw a notable improvement, reaching 63.1%, up by 510 basis points from the prior year. For the entire fiscal year 2025, the gross margin amounted to $6.773 billion, up 26% from 2024, with the gross margin percentage standing at 61.5%, a 440 basis points increase year-over-year.
Analog Devices reported operating income of $945 million for the fourth quarter, representing a significant 66% increase from the same period in 2024. The operating margin for the fourth quarter also saw a notable rise, reaching 30.7%, up by 740 basis points from the previous year. For the entire fiscal year 2025, the company achieved operating income of $2.932 billion, reflecting a 44% increase from 2024, with the operating margin standing at 26.6%, a 500 basis points increase year-over-year.
The diluted earnings per share (EPS) for the fourth quarter were reported at $1.60, marking a substantial 67% increase from the same period in 2024. For the entire fiscal year 2025, the diluted EPS reached $4.56, reflecting a 39% increase compared to 2024.
In terms of adjusted results, Analog Devices reported an adjusted gross margin of $2.147 billion for the fourth quarter, up 29% from the same period in the previous year. The adjusted gross margin percentage also improved to 69.8%, marking a 190 basis points increase year-over-year. The adjusted operating income for the fourth quarter was $1.338 billion, representing a 33% increase from the same period in 2024. The adjusted operating margin also saw an improvement, reaching 43.5%, up by 240 basis points from the prior year. The adjusted diluted EPS for the fourth quarter were reported at $2.26, marking a 35% increase from the same period in 2024. For the entire fiscal year 2025, the adjusted diluted EPS reached $7.79, reflecting a 22% increase compared to 2024.
Analog Devices also demonstrated robust cash generation and return to shareholders. The net cash provided by operating activities for the trailing twelve months ending on November 1, 2025, amounted to $4.812 billion, representing 44% of revenue. The free cash flow for the same period reached $4.279 billion, accounting for 39% of revenue. Additionally, the company returned 96% of free cash flow to shareholders in fiscal 2025, including $2.2 billion of share repurchases and $1.9 billion of dividends.
Looking ahead, for the first quarter of fiscal year 2026, Analog Devices is forecasting revenue of $3.1 billion, with reported operating margin expected to be approximately 31.0% and adjusted operating margin of approximately 43.5%. The reported EPS is anticipated to be $1.60, while the adjusted EPS is expected to reach $2.29.
The market has reacted to these announcements by moving the company's shares 3.73% to a price of $248.34. For more information, read the company's full 8-K submission here.
