The Bull Case For Analog Devices (ADI) Could Change Following Q3 Results and Strong Q4 Guidance

• On August 20, 2025, Analog Devices, Inc. reported third-quarter results exceeding analyst expectations with revenue of US$2.88 billion and earnings of US$2.05 per share, also declaring a quarterly dividend of US$0.99 per share to be paid on September 16, 2025 to shareholders of record as of September 2, 2025.
• The company highlighted robust double-digit growth across all end markets, ongoing investments in innovation including advanced robotics and AI collaborations, and confirmed optimistic guidance for the fourth quarter with projected revenue of US$3.0 billion and EPS of US$1.53, signaling underlying sector momentum despite challenging conditions.
• We'll examine how Analog Devices' better-than-expected quarterly growth and strong outlook update influence the company's forward investment narrative.

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Analog Devices Investment Narrative Recap

For investors considering Analog Devices, the core belief is in the company’s ability to capture value from accelerating adoption of industrial automation, advanced robotics, and electric vehicles, sectors that drive rising demand for high-performance analog and mixed-signal solutions. The company’s third-quarter results and upbeat guidance reinforce optimism around its exposure to these growing markets, though the near-term catalyst remains strong industrial recovery; immediate risks from trade tensions or cyclic inventory corrections haven't materially changed based on this news.

Among the recent announcements, the fiscal fourth-quarter guidance projecting revenue of US$3.0 billion and EPS of US$1.53 is most relevant, as it updates expectations for continued momentum. While this supports the near-term demand outlook, it is important to keep in mind that supply chain risks and market uncertainties may yet impact these projections.

However, investors should also be aware that, if geopolitical or macroeconomic disruptions resurface, short-term volatility may return to...

Read the full narrative on Analog Devices (it's free!)

Analog Devices' outlook anticipates $13.8 billion in revenue and $4.3 billion in earnings by 2028. This is based on forecast annual revenue growth of 11.9% and reflects an earnings increase of $2.5 billion from current earnings of $1.8 billion.

Uncover how Analog Devices' forecasts yield a $254.16 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Retail investors in the Simply Wall St Community set fair values for Analog Devices stock ranging from US$156.90 to US$300 across ten analyses. While many focus on robotics and automation as growth drivers, supply chain risks from geopolitical factors continue to shape opinions and outlooks for company performance.

Explore 10 other fair value estimates on Analog Devices - why the stock might be worth 36% less than the current price!

Build Your Own Analog Devices Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Analog Devices research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Analog Devices research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Analog Devices' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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