Analog Devices Inc (NASDAQ:ADI) stock rose 3.19% (As on November 25, 11:38:39 AM UTC-4, Source: Google Finance) after the company posted fourth-quarter revenue which topped estimates, as strength at the chipmaker’s automotive division helped to offset lower-than-anticipated sales at its key industrial segment. Industrial revenue, which accounts for more than 45% of Analog’s total sales, came in at $1.43 billion, below expectations of $1.46 billion. But automotive division sales of $852.2 million well outpaced projections of $766.8 million, while the company said bookings trends have been “healthy” to cap off a “robust year of both cyclical and idiosyncratic growth.” The company highlighted the company’s strong performance, attributing it to the resilience of their business model and commitment to leveraging superior technology. CFO Richard Puccio noted the continued growth in bookings and expressed confidence in the company’s ability to capitalize on cyclical recovery and secular growth opportunities despite macroeconomic uncertainties.
ADI in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.26, beating the analysts’ estimates for the adjusted earnings per share of $2.23. The company had reported the adjusted revenue growth of 26 percent to $3.08 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $3.02 billion. The company’s gross profit for the quarter was $1.94 billion, up 37% year-over-year, with a gross margin percentage of 63.1%. Operating income for the quarter was $945 million, a 66% increase from the previous year, and the operating margin improved to 30.7%.
Additionally, the company has declared a quarterly cash dividend of $0.99 per outstanding share of common stock. The dividend will be paid on December 22, 2025 to all shareholders of record at the close of business on December 8, 2025. Fiscal 2025 operating cash flow of $4.8 billion and free cash flow of $4.3 billion or 44% and 39% of revenue, respectively. The company has returned 96% of free cash flow to shareholders in fiscal 2025, including $2.2 billion of share repurchases and $1.9 billion of dividends
Analog also guided for revenue in its fiscal first quarter of $3.1 billion, plus or minus $100 million. Bloomberg estimates had called for an outlook of $2.97 billion. Adjusted per-share income is seen at $2.29, plus or minus $0.10. For the first quarter of fiscal 2026, the company is forecasting adjusted operating margin of approximately 43.5%, +/- 100 bps

