Key Stats for ADI Stock
- Price Change for $ADI stock: 6%
- Current Share Price: $245
- 52-Week High: $159
- $ADI Stock Price Target: $254
What Happened?
Analog Devices (ADI) surged over 6% on Wednesday following strong fiscal third-quarter 2025 results that exceeded expectations across all key metrics.
The semiconductor company reported revenue of $2.88 billion, representing a 25% year-over-year increase and coming in above the high end of guidance. This marked the second consecutive quarter of double-digit growth across all end markets.
Analog Devices showcased impressive profitability improvements with adjusted gross margin expanding 130 basis points to 69.2% and adjusted operating margin rising 100 basis points to 42.2%.
Adjusted earnings per share of $2.05 beat expectations and grew 30% year-over-year. Free cash flow over the trailing twelve months reached $3.7 billion, representing 35% of revenue.
Comparatively, analysts forecast ADI stock to report revenue of $2.76 billion with adjusted earnings per share of $2.05 in fiscal Q3.
Management provided upbeat guidance for Q4, projecting revenue of $3.0 billion and adjusted EPS of $2.22, both exceeding analyst expectations.
CEO Vincent Roche highlighted the accelerated recovery in the industrial business, which now represents 45% of revenue and grew 23% year-over-year.
See analysts’ growth forecasts and price targets for ADI stock (It’s free!) >>>
What the Market Is Telling Us About ADI Stock
The strong ADI stock performance reflects investor enthusiasm about the company’s broad-based recovery momentum and positioning in high-growth markets.
Particularly encouraging was the industrial segment’s continued strength, with sequential growth across all subsectors and regions.
ADI’s aerospace and defense business achieved a record quarter, while the automation segment reached double-digit growth after being the last industrial sector to recover.
ADI’s emphasis on emerging robotics opportunities also captured investor attention. Analog Devices highlighted its expanding content in humanoid robots, where it expects several thousand dollars of content per unit, a 10x increase over current autonomous mobile robots.
This positions ADI stock to benefit from the predicted robust double-digit growth in the robotics market driven by AI and demographic pressures.
The results validate ADI’s diversified business model and innovation-driven strategy amid ongoing geopolitical uncertainties.
With channel inventories remaining lean and end demand still below normal consumption levels, ADI appears well-positioned for continued recovery.
The 25% year-over-year revenue growth across all end markets, combined with substantial margin expansion and cash generation, demonstrates an ability to capitalize on cyclical momentum while investing in future growth opportunities.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
