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May 03

Analog Devices Q2 2025 Earnings Report

Analog Devices reported strong second-quarter results for fiscal year 2025 with revenue and EPS exceeding the high end of guidance.

Key Takeaways

Analog Devices delivered robust performance in Q2 FY25 with significant growth in all end markets, driven by cyclical recovery and increased customer demand, resulting in higher revenue, EPS, and net income.

Revenue grew to $2.64 billion, up 22% YoY, exceeding guidance.

Adjusted EPS rose to $1.85, reflecting strong margin expansion.

Bookings and backlog grew sequentially across all markets and regions.

Net income surged to $569.8 million, highlighting strong profitability.

Total Revenue
$2.64B
Previous year: $2.16B
+22.3%
EPS
$1.85
Previous year: $1.4
+32.1%
Gross Margin
61%
Previous year: 54.7%
+11.5%
Operating Margin
25.7%
Previous year: 17.9%
+43.6%
Adjusted Gross Margin
69.4%
Previous year: 66.7%
+4.0%
Gross Profit
$1.61B
Previous year: $1.18B
+36.6%
Cash and Equivalents
$2.38B
Previous year: $1.94B
+22.5%
Free Cash Flow
$729M
Previous year: $620M
+17.7%
Total Assets
$47.3B
Previous year: $48.9B
-3.1%

Analog Devices

Analog Devices

Analog Devices Revenue by Segment

Forward Guidance

Analog Devices expects Q3 FY25 revenue to reach approximately $2.75 billion, with continued strength across end markets and improving margins.

Positive Outlook

  • Q3 revenue projected at $2.75B, ±$100M.
  • Adjusted operating margin guidance at 41.5%.
  • Adjusted EPS guidance at $1.92, ±$0.10.
  • Sequential growth in backlog and bookings supports outlook.
  • Cyclical upturn and demand momentum expected to continue.

Challenges Ahead

  • Revenue variability with ±$100M guidance range.
  • Operating margin sensitivity of ±150bps.
  • Exposure to global trade volatility remains.
  • Continued amortization and acquisition-related adjustments.
  • Macroeconomic conditions could still introduce uncertainty.

Revenue & Expenses

Visualization of income flow from segment revenue to net income