Analog Devices Inc. (ADI) has reported its fiscal year 2025 results, showcasing significant growth and performance. The company's revenue for fiscal 2025 stood at $11.02 billion, marking a substantial 17% increase from the previous fiscal year. This growth was attributed to a broad-based increase in demand for ADI's products across various end markets.
The revenue by end market revealed that the Industrial sector contributed $4.93 billion, representing a 15% increase, driven by customer inventory balances normalizing and growth in the test equipment and aerospace and defense sub-markets. The Automotive sector saw a 16% increase, reaching $3.28 billion, primarily due to growth in connectivity solutions. The Consumer and Communications sectors also experienced growth, contributing $1.43 billion and $1.38 billion, respectively.
When analyzing revenue by sales channel, it was noted that 56% of the total revenue was generated through distributors, amounting to $6.14 billion, while direct customers contributed 43% at $4.72 billion.
Geographically, ADI's revenue saw increases in most regions, with China showing the most significant growth at 34%, reaching $2.86 billion. The United States, Europe, and Rest of Asia also contributed to the overall revenue growth.
The company's gross margin percentage for fiscal 2025 increased by 440 basis points compared to fiscal 2024, standing at 61.5%. This increase was primarily attributed to higher factory utilization due to increased customer demand and a decrease in amortization expense related to acquired intangible assets.
ADI's research and development (R&D) expenses for fiscal 2025 amounted to $1.77 billion, representing a 19% increase from fiscal 2024. The company emphasized the importance of R&D in maintaining product leadership and providing innovative new product offerings.
Selling, Marketing, General and Administrative (SMG&A) expenses for fiscal 2025 totaled $1.26 billion, marking a 17% increase from fiscal 2024. This increase was primarily driven by higher employee-related variable compensation expenses and salary and benefit expenses.
Amortization expenses decreased by 1% in fiscal 2025 compared to fiscal 2024, primarily due to a portion of acquired intangible assets becoming fully amortized.
Net income for fiscal 2025 reached $2.27 billion, representing a 39% increase from fiscal 2024. This increase was attributed to higher operating income and a decrease in nonoperating expenses, partially offset by an increase in provision for income taxes.
In terms of liquidity and capital resources, ADI held $3.7 billion in cash, cash equivalents, and short-term investments as of November 1, 2025. The company expressed confidence in its existing sources of liquidity and anticipated cash from future operations to fund its operations, capital expenditures, research and development efforts, and dividend payments.
Today the company's shares have moved 3.73% to a price of $248.34. For the full picture, make sure to review ANALOG DEVICES INC's 10-K report.
