Shares of Analog Devices (NASDAQ:ADI) rose about 4% premarket on Tuesday after fourth results and outlook surpassed estimates.
For the fourth quarter of fiscal 2025, ended Nov. 1, revenue surged about 26% year-over-year to $3.08B. Meanwhile, adjusted EPS soared 35% year-over-year to $2.26. Both top and bottom-line numbers beat estimates.
“Healthy bookings trends continued in the fourth quarter with growth in Industrial and notable strength in our Communications market,” said CFO Richard Puccio.
The company said it returned 96% of free cash flow to shareholders in fiscal 2025, including $2.2B of share repurchases and $1.9B of dividends.
Analog Devices’ board declared a quarterly cash dividend of $0.99 per share. The dividend will be paid on Dec. 22 to all shareholders of record at the close of business on Dec. 8.
Outlook
“While macro uncertainty will likely influence the shape of our fiscal 2026, we believe we are well positioned to continue capitalizing on the ongoing cyclical recovery and our secular growth opportunities,” said Puccio.
For the first quarter of fiscal 2026, the company expects revenue of $3.1B, +/- $100M, versus consensus of $2.98B.
Analog Devices expects adjusted EPS to be $2.29, +/- $0.10, compared to a consensus of $2.18.
At the midpoint of this revenue outlook, the company expects a reported operating margin of about 31.0%, +/- 130 basis points, or bps, and adjusted operating margin of around 43.5%, +/- 100 bps.
Related stocks: Marvell Technology (MRVL) and Monolithic Power Systems (MPWR) fell nearly -1% each, while Texas Instruments (TXN) was also in the red. Microchip Technology (MCHP) was largely flat.