Analog Devices Jumps Over 4% on Strong Earnings Beat
Chipmaker surpasses Q3 revenue and profit estimates, issuing an optimistic forecast amid robust demand in industrial markets.
Shares of Analog Devices, Inc. (NASDAQ: ADI) surged more than 4% on Wednesday after the semiconductor company reported fiscal third-quarter results that topped Wall Street expectations and provided a strong outlook for the fourth quarter.
The Norwood, Massachusetts-based chipmaker posted an adjusted earnings per share of $2.05 on revenue of $2.88 billion. These figures comfortably beat the consensus analyst estimates, which projected an EPS of around $1.93 and revenue of $2.79 billion. Following the announcement, the company's stock rose 4.31% to trade at $240.37 in midday activity.
In a statement, company leadership expressed confidence despite persistent global trade uncertainties. "Demand for ADI’s products remains robust," said CEO Vincent Roche, highlighting the company’s focus on innovation. Chief Financial Officer Richard Puccio noted that healthy bookings and a growing backlog, particularly in the Industrial segment, underpin the positive outlook.
Demonstrating its financial strength, Analog Devices returned $1.6 billion to shareholders during the third quarter, consisting of $500 million in dividends and $1.1 billion in share repurchases. The company also declared a quarterly dividend of $0.99 per share.
Looking ahead, Analog Devices forecasts continued momentum. For the fiscal fourth quarter of 2025, the company projects revenue of approximately $3.0 billion, with a potential variance of $100 million. It anticipates an adjusted EPS of $2.22, plus or minus $0.10. The results mark the fourth consecutive quarter in which ADI has exceeded both EPS and revenue estimates, underscoring its consistent performance in the semiconductor sector.