Chipmaker Analog Devices Q4 profit beats estimates on demand in communications sector

Analog Devices

25/11/2025 12:11

Corrects adjusted gross margin to 69.8% from 29% in Key Details table

Overview

Analog Devices Q4 revenue grows 26% yr/yr, beating analyst expectations

Adjusted EPS for Q4 beats analyst expectations, reflecting robust performance

Adjusted operating income for Q4 missed analyst expectations

Outlook

Company forecasts Q1 2026 revenue of $3.1 bln, +/- $100 mln

Analog Devices expects Q1 2026 reported EPS of $1.60, +/- $0.10

Company anticipates Q1 2026 adjusted EPS of $2.29, +/- $0.10

Result Drivers

COMMUNICATIONS AND INDUSTRIAL GROWTH - Revenue growth in Q4 was led by strength in Communications and Industrial sectors

CUSTOMER FOCUS - CEO Vincent Roche attributes strong growth to leveraging technology and domain expertise to solve customer problems

BOOKINGS TRENDS - Healthy bookings trends continued in Q4, with notable strength in Communications market, per CFO Richard Puccio

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$3.08 bln
$3.007 bln (28 Analysts)
Q4 Adjusted EPS
Beat
$2.26
$2.22 (27 Analysts)
Q4 EPS
$1.60
Q4 Adjusted Operating Income
Miss
$1.34 bln
$1.39 bln (26 Analysts)
Q4 Adjusted Gross Margin
69.8%
Q4 Adjusted Operating Margin
43.50%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Analog Devices Inc is $280.00, about 14.5% above its November 24 closing price of $239.40

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn305nnda

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)