ADI Reports 26% Revenue Increase in Q4 2025

By Hao Liu • Tuesday, November 25 12:06 • Permanent Link

Analog Devices, Inc. (ADI) has reported strong financial results for its fiscal fourth quarter and fiscal year 2025, which ended on November 1, 2025. The company's fourth quarter revenue was $3.08 billion, representing a 26% increase compared to the same period in 2024. For the entire fiscal year 2025, ADI achieved revenue of $11.0 billion, marking a 17% rise from the previous fiscal year.

ADI's operating cash flow for fiscal 2025 was $4.8 billion, and its free cash flow amounted to $4.3 billion, equivalent to 44% and 39% of revenue, respectively. The company returned 96% of its free cash flow to shareholders in fiscal 2025, including $2.2 billion from share repurchases and $1.9 billion from dividends.

The gross margin for the fourth quarter was $1.942 billion, indicating a 37% increase from the same period in 2024. The gross margin percentage was 63.1%, up from 58.0% in 2024. Additionally, the operating income for the fourth quarter was $945 million, a 66% increase compared to the previous year, with an operating margin of 30.7%, up from 23.3% in 2024. Diluted earnings per share for the quarter were $1.60, a 67% increase from the same period in 2024.

When considering adjusted results, ADI's fourth quarter adjusted gross margin was $2.147 billion, a 29% increase from the previous year. The adjusted gross margin percentage was 69.8%, up from 67.9% in 2024. The adjusted operating income for the quarter was $1.338 billion, a 33% increase from the same period in 2024, with an adjusted operating margin of 43.5%, up from 41.1% in 2024. Adjusted diluted earnings per share for the quarter were $2.26, a 35% increase from the previous year.

ADI's cash generation for the trailing twelve months ending on November 1, 2025, resulted in net cash provided by operating activities of $4.812 billion, which represented 44% of revenue. The company's free cash flow for the same period was $4.279 billion, equivalent to 39% of revenue.

Looking ahead to the first quarter of fiscal year 2026, ADI is forecasting revenue of $3.1 billion, with reported operating margin expected to be approximately 31.0% and adjusted operating margin approximately 43.5%. Reported EPS is anticipated to be $1.60, and adjusted EPS is expected to be $2.29.

Today the company's shares have moved 3.05% to a price of $239.40. Check out the company's full 8-K submission here.

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