Analog Devices Q2 Earnings Top Forecasts
Analog Devices, Inc. (NASDAQ:ADI) reported Q2 FY2025 earnings on May 22, 2025, with revenue of $2.64 billion—up 22% year-over-year and 9% sequentially—and non-GAAP EPS of $1.85, surpassing the high end of guidance. The company demonstrated significant sequential growth across industrial, automotive, and communications end markets, while announcing guidance for Q3 FY2025 revenue of $2.75 billion (+/- $100 million) and maintaining an expectation of advancing toward long-term margin and free cash flow targets. The discussion below covers decisive supply chain adaptations, cyclical industrial recovery dynamics, and long-term operating leverage incentives, all with quantitative and strategic detail.Capital expenditures in recent years have increased internal and external manufacturing capacity, with footprint now exceeding twice pre-pandemic levels, supporting the majority of products made on mature (≥180nm) process nodes. Cross-qualification of broad product lines and partnership expansion with foundries, including adoption of 300mm fine-pitch technology, has enabled production shifts across the U.S. Europe, and global locations. This approach addresses customer risk related to dynamic macroeconomic and geopolitical volatility.Continue reading
Analog Devices, Inc. (NASDAQ:ADI) reported Q2 FY2025 earnings on May 22, 2025, with revenue of $2.64 billion—up 22% year-over-year and 9% sequentially—and non-GAAP EPS of $1.85, surpassing the high end of guidance.
The company demonstrated significant sequential growth across industrial, automotive, and communications end markets, while announcing guidance for Q3 FY2025 revenue of $2.75 billion (+/- $100 million) and maintaining an expectation of advancing toward long-term margin and free cash flow targets. The discussion below covers decisive supply chain adaptations, cyclical industrial recovery dynamics, and long-term operating leverage incentives, all with quantitative and strategic detail.
Capital expenditures in recent years have increased internal and external manufacturing capacity, with footprint now exceeding twice pre-pandemic levels, supporting the majority of products made on mature (≥180nm) process nodes. Cross-qualification of broad product lines and partnership expansion with foundries, including adoption of 300mm fine-pitch technology, has enabled production shifts across the U.S. Europe, and global locations. This approach addresses customer risk related to dynamic macroeconomic and geopolitical volatility.
