ADI Reports Strong Q4 2025 Revenue and Profit Growth, Exceeds Analyst EPS Estimates

Analog Devices (ADI.US) announced robust financial results for its fiscal fourth quarter and full fiscal year 2025, ended November 1, 2025. For Q4 2025, the company reported revenue of $3.08 billion, marking a substantial 26% year-over-year increase. Adjusted diluted earnings per share (EPS) reached $2.26, representing a 35% year-over-year growth and surpassing the analyst estimate of $2.22.

Strong Segment Performance

ADI experienced year-over-year growth across all its end markets in the fourth quarter, with Communications and Industrial segments leading the way. The Industrial segment generated $1.43 billion in revenue, growing 34% year-over-year, while the Communications segment saw revenue of $389.8 million, up 37% year-over-year.

For the full fiscal year 2025, total revenue reached $11.0 billion, a 17% increase compared to fiscal 2024. This performance underscores the strength and resilience of ADI's business model and its focus on leveraging technology and expertise to address customer needs.

Management Outlook

For the first quarter of fiscal year 2026, ADI forecasts revenue of approximately $3.1 billion, with a margin of +/- $100 million. The company anticipates an adjusted operating margin of approximately 43.5%, +/- 100 bps, for the upcoming quarter.

Adjusted EPS for the first quarter of fiscal 2026 is projected to be $2.29, +/- $0.10. Management noted healthy bookings trends continuing in the fourth quarter, with growth in Industrial and notable strength in the Communications market.

Cash Flow and Shareholder Returns

ADI demonstrated strong cash generation in fiscal 2025, with operating cash flow reaching $4.8 billion and free cash flow at $4.3 billion. This represents 44% and 39% of revenue, respectively, highlighting efficient financial management.

The company returned 96% of its free cash flow to shareholders in fiscal 2025, including $2.2 billion in share repurchases and $1.9 billion in dividends. The Board of Directors has also declared a quarterly cash dividend of $0.99 per outstanding share of common stock.