# ANALOG DEVICES INC (ADI)

Informational only - not investment advice.

CIK: 0000006281
SIC: 3674 Semiconductors & Related Devices
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3674 Semiconductors & Related Devices](/industry/3674/)
Latest 10-K filed: 2025-11-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=6281
Filing source: https://www.sec.gov/Archives/edgar/data/6281/000000628125000153/adi-20251101.htm

## At a glance

FY2025 · period end 2025-11-01 · filed 2025-11-25 · accession 0000006281-25-000153 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000006281.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 11,019,707,000 USD | 2025 | verified |
| Net income | 2,267,342,000 USD | 2025 | verified |
| Assets | 47,992,712,000 USD | 2025 | verified |
| Free cash flow | 4,278,650,000 USD | 2025 | computed |
| Net margin | 20.58% | 2025 | computed |
| Operating margin | 26.61% | 2025 | computed |
| Revenue YoY | +16.89% | 2025 | computed |
| ROE | 6.70% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Semiconductors](/compare/semiconductors/) · SIC 3674 Semiconductors & Related Devices

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including ADI

- Semiconductors: [peer review](/compare/semiconductors/) · [market-risk page](/compare/semiconductors/risk/)

### Peer percentile fingerprint

| Ratio | ADI | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 20.6% | 4.9% | 76 | 59 |
| Operating margin | 26.6% | 3.7% | 86 | 58 |
| Revenue growth | 16.9% | 15.5% | 52 | 61 |
| FCF margin | 38.8% | 8.9% | 93 | 60 |
| ROE | 6.7% | 3.8% | 58 | 58 |
| ROA | 4.7% | 1.6% | 62 | 61 |
| Liabilities / equity | 0.42 | 0.51 | 45 | 59 |
| Current ratio | 2.19 | 2.70 | 27 | 61 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3674 Semiconductors & Related Devices, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 11019707000 | USD | 2025 | 2025-11-25 |
| Net income | 2267342000 | USD | 2025 | 2025-11-25 |
| Assets | 47992712000 | USD | 2025 | 2025-11-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000006281.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2010 | 2011 | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  |  |  | 5,246,354,000 | 6,224,689,000 | 5,991,065,000 | 5,603,056,000 | 7,318,286,000 | 12,013,953,000 | 12,305,539,000 | 9,427,157,000 | 11,019,707,000 |
| Net income |  |  |  |  | 861,664,000 | 805,379,000 | 1,506,980,000 | 1,363,011,000 | 1,220,761,000 | 1,390,422,000 | 2,748,561,000 | 3,314,579,000 | 1,635,273,000 | 2,267,342,000 |
| Operating income |  |  |  |  | 1,028,112,000 | 1,162,761,000 | 1,899,589,000 | 1,710,608,000 | 1,498,244,000 | 1,692,201,000 | 3,278,700,000 | 3,823,112,000 | 2,032,798,000 | 2,932,496,000 |
| Gross profit |  |  |  |  | 2,227,173,000 | 3,168,241,000 | 4,250,396,000 | 4,013,750,000 | 3,690,478,000 | 4,525,012,000 | 7,532,474,000 | 7,877,218,000 | 5,381,343,000 | 6,773,478,000 |
| Diluted EPS | 2.33 | 2.81 | 2.13 | 2.14 |  |  |  |  | 3.28 | 3.46 | 5.25 | 6.55 | 3.28 | 4.56 |
| Operating cash flow |  |  |  |  | 1,291,348,000 | 1,154,365,000 | 2,442,361,000 | 2,253,100,000 | 2,008,487,000 | 2,735,069,000 | 4,475,402,000 | 4,817,634,000 | 3,852,529,000 | 4,812,202,000 |
| Capital expenditures |  |  |  |  | 127,397,000 | 204,098,000 | 254,876,000 | 275,372,000 | 165,692,000 | 343,676,000 | 699,308,000 | 1,261,463,000 | 730,463,000 | 533,552,000 |
| Dividends paid |  |  |  |  | 513,180,000 | 602,119,000 | 703,307,000 | 777,481,000 | 886,155,000 | 1,109,344,000 | 1,544,552,000 | 1,679,106,000 | 1,795,459,000 | 1,924,413,000 |
| Share buybacks |  |  |  |  | 370,061,000 | 46,533,000 | 225,977,000 | 613,005,000 | 244,487,000 | 2,605,144,000 | 2,577,015,000 | 2,963,955,000 | 615,590,000 | 2,164,638,000 |
| Assets |  |  |  |  | 7,970,278,000 | 21,141,294,000 | 20,438,366,000 | 21,392,641,000 | 21,468,603,000 | 52,322,071,000 | 50,302,350,000 | 48,794,478,000 | 48,228,277,000 | 47,992,712,000 |
| Stockholders' equity |  |  |  |  | 5,165,618,000 | 10,161,540,000 | 11,268,173,000 | 11,709,188,000 | 11,997,945,000 | 37,992,542,000 | 36,465,323,000 | 35,565,122,000 | 35,176,317,000 | 33,815,755,000 |
| Cash and cash equivalents |  |  |  |  | 921,132,000 | 1,047,838,000 | 816,591,000 | 648,322,000 | 1,055,860,000 | 1,977,964,000 | 1,470,572,000 | 958,061,000 | 1,991,342,000 | 2,499,406,000 |
| Free cash flow |  |  |  |  | 1,163,951,000 | 950,267,000 | 2,187,485,000 | 1,977,728,000 | 1,842,795,000 | 2,391,393,000 | 3,776,094,000 | 3,556,171,000 | 3,122,066,000 | 4,278,650,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2010 | 2011 | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  |  |  | 15.35% | 24.21% | 22.75% | 21.79% | 19.00% | 22.88% | 26.94% | 17.35% | 20.58% |
| Operating margin |  |  |  |  |  | 22.16% | 30.52% | 28.55% | 26.74% | 23.12% | 27.29% | 31.07% | 21.56% | 26.61% |
| Return on equity |  |  |  |  | 16.68% | 7.93% | 13.37% | 11.64% | 10.17% | 3.66% | 7.54% | 9.32% | 4.65% | 6.70% |
| Return on assets |  |  |  |  | 10.81% | 3.81% | 7.37% | 6.37% | 5.69% | 2.66% | 5.46% | 6.79% | 3.39% | 4.72% |
| Liabilities / equity |  |  |  |  | 0.54 | 1.08 | 0.81 | 0.83 | 0.79 | 0.38 | 0.38 | 0.37 | 0.37 | 0.42 |
| Current ratio |  |  |  |  | 6.35 | 1.47 | 2.01 | 1.32 | 1.84 | 1.94 | 2.02 | 1.37 | 1.84 | 2.19 |

## As-reported value updates

5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ADI/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000006281.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-04-30 |  |  | 1.49 | reported discrete quarter |
| 2022-Q3 | 2022-07-30 |  |  | 1.44 | reported discrete quarter |
| 2023-Q1 | 2023-01-28 |  |  | 1.88 | reported discrete quarter |
| 2023-Q2 | 2023-04-29 | 3,262,930,000 | 977,656,000 | 1.92 | reported discrete quarter |
| 2023-Q3 | 2023-07-29 | 3,076,495,000 | 877,019,000 | 1.74 | reported discrete quarter |
| 2023-Q4 | 2023-10-28 | 2,716,484,000 | 498,430,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q2 | 2024-05-04 | 2,159,039,000 | 302,242,000 | 0.61 | reported discrete quarter |
| 2024-Q3 | 2024-08-03 | 2,312,209,000 | 392,232,000 | 0.79 | reported discrete quarter |
| 2024-Q4 | 2024-11-02 | 2,443,205,000 | 478,072,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-02-01 | 2,423,174,000 | 391,316,000 | 0.78 | reported discrete quarter |
| 2025-Q2 | 2025-05-03 | 2,640,068,000 | 569,770,000 | 1.14 | reported discrete quarter |
| 2025-Q3 | 2025-08-02 | 2,880,348,000 | 518,518,000 | 1.04 | reported discrete quarter |
| 2025-Q4 | 2025-11-01 | 3,076,117,000 | 787,738,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-01-31 | 3,160,263,000 | 830,826,000 | 1.69 | reported discrete quarter |
| 2026-Q2 | 2026-05-02 | 3,623,465,000 | 1,176,350,000 | 2.40 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ADI's latest 10-K: [/company/ADI/business/](/company/ADI/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ADI's latest 10-K: [/company/ADI/risk-factors/](/company/ADI/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/6281/000000628126000052/adi-20260502.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-20
Report date: 2026-05-02

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended November 1, 2025 (fiscal 2025).

This Quarterly Report on Form 10-Q, including the following discussion, contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “potential,” “may,” “could” and “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements, however, the absence of the foregoing words or expressions does not mean that a statement is not forward-looking. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors.

The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in the forward-looking statements: economic, political, legal and regulatory uncertainty or conflicts; recently announced and future tariffs and other trade restrictions; changes in export classifications, import and export regulations or duties and tariffs; changes in demand for semiconductor products; performance of independent distributors; manufacturing delays, product and raw materials availability and supply chain disruptions; products may be diverted from our authorized distribution channels; our development of technologies and research and development investments; our ability to compete successfully in the markets in which we operate; our future liquidity, capital needs and capital expenditures; our ability to recruit and retain key personnel; risks related to acquisitions or other strategic transactions; unanticipated difficulties or expenditures relating to integrating acquired businesses; security breaches or other cyber incidents; risks related to the use of artificial intelligence in our business operations, products and services; adverse results in litigation; the outcome of any regulatory actions, including governmental inquiries, investigations or enforcement proceedings in the event of noncompliance or alleged noncompliance with laws or regulations; reputational damage; changes in our estimates of our expected tax rates based on current tax law; risks related to our indebtedness; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; and uncertainty as to the long-term value of our common stock. Additional factors that could cause actual results to differ materially from those described in these forward-looking statements include the risk factors included in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for fiscal 2025. Forward-looking statements represent management’s current expectations and are inherently uncertain. We undertake no obligation to revise or update any forward-looking statements, including to reflect events or circumstances occurring after the date of the filing of this report, except to the extent required by law.

15

Results of Operations

Overview

Amounts in the tables below are reflected in thousands except per share amounts and percentages.

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","May 2, 2026","","May 3, 2025","","$ Change","","% Change"],["Revenue","$","3,623,465","","","$","2,640,068","","","$","983,397","","","37","%"],["Gross margin %","67.3","%","","61.0","%"],["Net income","$","1,176,350","","","$","569,770","","","$","606,580","","","106","%"],["Net income as a % of revenue","32.5","%","","21.6","%"],["Diluted EPS","$","2.40","","","$","1.14","","","$","1.26","","","111","%"],["","Six Months Ended"],["","May 2, 2026","","May 3, 2025","","$ Change","","% Change"],["Revenue","$","6,783,728","","","$","5,063,242","","","$","1,720,486","","","34","%"],["Gross margin %","66.1","%","","60.1","%"],["Net income","$","2,007,176","","","$","961,086","","","$","1,046,090","","","109","%"],["Net income as a % of revenue","29.6","%","","19.0","%"],["Diluted EPS","$","4.09","","","$","1.93","","","$","2.16","","","112","%"]]
[[/GREPCENT_TABLE]]

Revenue Trends by End Market

The following tables summarize revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which our product will be incorporated. The assignment of products to end markets may change over time. When this occurs, we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","May 2, 2026","","May 3, 2025"],["","Revenue","","% of Revenue*","","Y/Y%","","Revenue","","% of Revenue*"],["Industrial","$","1,799,413","","","50","%","","56","%","","$","1,150,315","","","44","%"],["Automotive","871,565","","","24","%","","2","%","","856,090","","","32","%"],["Communications","554,728","","","15","%","","79","%","","310,604","","","12","%"],["Consumer","397,759","","","11","%","","23","%","","323,059","","","12","%"],["Total revenue","$","3,623,465","","","100","%","","37","%","","$","2,640,068","","","100","%"],["","Six Months Ended"],["","May 2, 2026","","May 3, 2025"],["","Revenue","","% of Revenue*","","Y/Y%","","Revenue","","% of Revenue*"],["Industrial","$","3,296,449","","","49","%","","48","%","","$","2,220,569","","","44","%"],["Automotive","1,681,709","","","25","%","","5","%","","1,596,349","","","32","%"],["Communications","1,009,911","","","15","%","","65","%","","610,905","","","12","%"],["Consumer","795,659","","","12","%","","25","%","","635,419","","","13","%"],["Total revenue","$","6,783,728","","","100","%","","34","%","","$","5,063,242","","","100","%"],["* The sum of the individual percentages may not equal the total due to rounding."]]
[[/GREPCENT_TABLE]]

Revenue increased 37% and 34% in the three- and six-month periods ended May 2, 2026 as compared to the same periods of the prior fiscal year as a result of a broad-based increase in demand for our products, notably within all Industrial

16

sub-markets with the highest growth coming from our test equipment and aerospace and defense sub-markets. Revenue also increased in the data center portion of the Communications end market related to artificial intelligence-driven infrastructure investments.

Revenue by Sales Channel

The following tables summarize revenue by sales channel. We sell our products globally through a direct sales force, third-party distributors, independent sales representatives and via our website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time.

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","May 2, 2026","","May 3, 2025"],["","Revenue","","% of Revenue*","","Revenue","","% of Revenue*"],["Channel"],["Distributors","$","2,071,312","","","57","%","","$","1,480,088","","","56","%"],["Direct customers","1,520,090","","","42","%","","1,125,775","","","43","%"],["Other","32,063","","","1","%","","34,205","","","1","%"],["Total revenue","$","3,623,465","","","100","%","","$","2,640,068","","","100","%"],["","Six Months Ended"],["","May 2, 2026","","May 3, 2025"],["","Revenue","","% of Revenue*","","Revenue","","% of Revenue*"],["Channel"],["Distributors","$","3,813,606","","","56","%","","$","2,855,552","","","56","%"],["Direct customers","2,897,220","","","43","%","","2,145,647","","","42","%"],["Other","72,902","","","1","%","","62,043","","","1","%"],["Total revenue","$","6,783,728","","","100","%","","$","5,063,242","","","100","%"],["* The sum of the individual percentages may not equal the total due to rounding."]]
[[/GREPCENT_TABLE]]

As indicated in the tables above, the percentage of total revenue sold via each channel has remained relatively consistent in the periods presented, but can fluctuate from time to time based on end market revenue trends.

Gross Margin

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Six Months Ended"],["","May 2, 2026","","May 3, 2025","","$ Change","","% Change","","May 2, 2026","","May 3, 2025","","$ Change","","% Change"],["Gross margin","$","2,439,798","","","$","1,611,610","","","$","828,188","","","51","%","","$","4,484,773","","","$","3,041,913","","","$","1,442,860","","","47","%"],["Gross margin %","67.3","%","","61.0","%","","","","","","66.1","%","","60.1","%"]]
[[/GREPCENT_TABLE]]

Gross margin percentage increased by 630 and 600 basis points in the three- and six-month periods ended May 2, 2026 as compared to the same periods of the prior fiscal year, primarily due to higher utilization of our manufacturing fixed costs as a result of increased customer demand and favorable mix of products sold into our end markets.

Research and Development (R&D)

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Six Months Ended"],["","May 2, 2026","","May 3, 2025","","$ Change","","% Change","","May 2, 2026","","May 3, 2025","","$ Change","","% Change"],["R&D expenses","$","509,323","","","$","441,837","","","$","67,486","","","15","%","","$","976,723","","","$","844,729","","","$","131,994","","","16","%"],["R&D expenses as a % of revenue","14","%","","17","%","","","","","","14","%","","17","%"]]
[[/GREPCENT_TABLE]]

17

R&D expenses increased in the three- and six-month periods ended May 2, 2026, as compared to the same periods of the prior fiscal year, primarily as a result of higher R&D employee-related variable compensation expenses. R&D expenses declined as a percentage of revenue, primarily reflecting higher revenue levels and improved operating leverage. We expect to continue the development of innovative technologies and processes for new products, which we view as critical to our future growth. We believe that a continued commitment to R&D is essential to maintain product leadership with our existing products as well as to provide innovative new product offerings.

Selling, Marketing, General and Administrative (SMG&A)

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Six Months Ended"],["","May 2, 2026","","May 3, 2025","","$ Change","","% Change","","May 2, 2026","","May 3, 2025","","$ Change","","% Change"],["SMG&A expenses","$","362,810","","","$","302,669","","","$","60,141","","","20","%","","$","708,063","","","$","587,465","","","$","120,598","","","21","%"],["SMG&A expenses as a % of revenue","10","%","","11","%","","","","","","10","%","","12","%"]]
[[/GREPCENT_TABLE]]

SMG&A expenses increased in the three- and six-month periods ended May 2, 2026, as compared to the same periods of

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/6281/000000628125000153/adi-20251101.htm
Complete FY 2025 MD&A: /company/ADI/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-25
Report date: 2025-11-01

ITEM 7.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (all tabular amounts in thousands except per share amounts)

The following discussion includes results of operations and financial condition for the fiscal year ended November 1, 2025 (fiscal 2025) and the fiscal year ended November 2, 2024 (fiscal 2024) and year-over-year comparisons between fiscal 2025 and fiscal 2024. For discussion on results of operations and financial condition for fiscal 2024 and the fiscal year ended October 28, 2023 (fiscal 2023) and year-over-year comparisons between fiscal 2024 and fiscal 2023, please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for fiscal 2024 filed with the Securities and Exchange Commission on November 26, 2024. Our fiscal year is the 52-week or 53-week period ending on the Saturday closest to the last day in October. Fiscal 2025 was a 52-week fiscal period, while fiscal 2024 was a 53-week fiscal period. The additional week in fiscal 2024 was included in the first quarter ended February 3, 2024. Therefore, fiscal 2025 includes one less week of operations as compared to fiscal 2024.

Results of Operations

Overview

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["Revenue","$","11,019,707","","","$","9,427,157","","","","","$","1,592,550","","","17","%"],["Gross margin %","61.5","%","","57.1","%"],["Net income","$","2,267,342","","","$","1,635,273","","","","","$","632,069","","","39","%"],["Net income as a % of revenue","20.6","%","","17.3","%"],["Diluted EPS","$","4.56","","","$","3.28","","","","","$","1.28","","","39","%"]]
[[/GREPCENT_TABLE]]

Revenue Trends by End Market

The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data and our methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.

[[GREPCENT_TABLE]]
[["","Fiscal 2025","","Fiscal 2024"],["","Revenue","","% of Total Revenue (1)","","Y/Y%Change","","Revenue","","% of Total Revenue (1)"],["Industrial","$","4,929,409","","","45","%","","15","%","","$","4,290,324","","","46","%"],["Automotive","3,277,865","","","30","%","","16","%","","2,837,522","","","30","%"],["Consumer","1,434,568","","","13","%","","19","%","","1,207,880","","","13","%"],["Communications","1,377,865","","","13","%","","26","%","","1,091,431","","","12","%"],["Total Revenue","$","11,019,707","","","100","%","","17","%","","$","9,427,157","","","100","%"]]
[[/GREPCENT_TABLE]]

_______________________________________

(1)The sum of the individual percentages may not equal the total due to rounding.

Revenue increased 17% in fiscal 2025 as compared to fiscal 2024 as a result of broad-based increase in demand for our products. In addition to increased demand, the increase in the Industrial end market was primarily due to customer inventory balances normalizing and growth in the test equipment and aerospace and defense sub-markets. In the Automotive end market, the increase was primarily driven by increases from connectivity solutions. The increase in the Consumer end market was primarily related to portable consumer products and the increase in the Communications end market was primarily driven by growth in the wireline sub-market from data center infrastructure expansion in support of AI applications. These increases were partially offset by the impact of an additional week of operations in fiscal 2024 as compared to fiscal 2025.

Revenue by Sales Channel

The following table summarizes revenue by sales channel. We sell our products globally through a direct sales force, third-party distributors, independent sales representatives and via our website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers (OEMs). Other customers include the U.S. government, government prime contractors and certain commercial

31

customers for which revenue is recorded over time.

[[GREPCENT_TABLE]]
[["","Fiscal 2025","","Fiscal 2024"],["","Revenue","","% of Total Revenue (1)","","Revenue","","% of Total Revenue (1)"],["Distributors","$","6,144,819","","","56","%","","$","5,505,779","","","58","%"],["Direct customers","4,718,993","","","43","%","","3,772,945","","","40","%"],["Other","155,895","","","1","%","","148,433","","","2","%"],["Total Revenue","$","11,019,707","","","100","%","","$","9,427,157","","","100","%"]]
[[/GREPCENT_TABLE]]

_______________________________________

(1)The sum of the individual percentages may not equal the total due to rounding.

As indicated in the table above, the percentage of total revenue sold via each channel has remained relatively consistent in the periods presented but can fluctuate from time to time based on end market revenue trends. As a percentage of total revenue, the decrease in the distributor channel is primarily due to the decrease in the percentage of revenue from our Industrial end market.

Revenue Trends by Geographic Region

Geographic revenue information for fiscal 2025 and fiscal 2024 reflects the geographic location of the distributors or OEMs who purchased the Company’s products. This may differ from the geographic location of the end customers particularly in cases where a third-party contract manufacturer purchases the Company’s products through distributors.

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change (1)"],["United States","$","3,238,145","","","$","2,840,426","","","","","$","397,719","","","14","%"],["Rest of North and South America","162,470","","","62,318","","","","","100,152","","","161","%"],["Europe","2,285,598","","","2,109,529","","","","","176,069","","","8","%"],["Japan","989,916","","","1,085,631","","","","","(95,715)","","","(9)","%"],["China","2,858,286","","","2,128,840","","","","","729,446","","","34","%"],["Rest of Asia","1,485,292","","","1,200,413","","","","","284,879","","","24","%"],["Total Revenue","$","11,019,707","","","$","9,427,157","","","","","$","1,592,550","","","17","%"]]
[[/GREPCENT_TABLE]]

_______________________________________

(1)The sum of the individual percentages may not equal the total due to rounding.

In all periods presented, the predominant regions comprising “Rest of North and South America” are Mexico and Canada; the predominant regions comprising “Europe” are Germany, the Netherlands, France and Israel; and the predominant regions comprising “Rest of Asia” are Taiwan, South Korea, Malaysia and Singapore.

Total revenue increased in fiscal 2025 as compared to fiscal 2024 in most regions due to broad-based demand increases as discussed above under the heading Revenue Trends by End Market.

Gross Margin

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["Gross margin","$","6,773,478","","","$","5,381,343","","","","","$","1,392,135","","","26","%"],["Gross margin %","61.5","%","","57.1","%"]]
[[/GREPCENT_TABLE]]

Gross margin percentage in fiscal 2025 increased by 440 basis points compared to fiscal 2024, primarily due to higher utilization of our factories due to increased customer demand as well as a decrease in amortization expense related to acquired intangible assets.

32

Research and Development (R&D)

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["R&D expenses","$","1,766,001","","","$","1,487,863","","","","","$","278,138","","","19","%"],["R&D expenses as a % of revenue","16","%","","16","%"]]
[[/GREPCENT_TABLE]]

R&D expenses increased in fiscal 2025 as compared to fiscal 2024, primarily as a result of higher R&D employee related variable compensation expenses and higher salary and benefit expenses, partially offset by the impact of an additional week of operations in fiscal 2024 as compared to fiscal 2025.

R&D expenses as a percentage of revenue will fluctuate from year-to-year depending on the amount of revenue and the success of new product development efforts, which we view as critical to our future growth. We expect to continue the development of innovative technologies and processes for new products. We believe that a continued commitment to R&D is essential to maintain product leadership with our existing products as well as to provide innovative new product offerings.

Selling, Marketing, General and Administrative (SMG&A)

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["SMG&A expenses","$","1,255,339","","","$","1,068,640","","","","","$","186,699","","","17","%"],["SMG&A expenses as a % of revenue","11","%","","11","%"]]
[[/GREPCENT_TABLE]]

SMG&A expenses increased in fiscal 2025 as compared to fiscal 2024, primarily as a result of higher SMG&A employee related variable compensation expenses and salary and benefit expenses, partially offset by an additional week of operations in fiscal 2024 as compared to fiscal 2025.

Amortization of Intangibles

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["Amortization expenses","$","749,662","","","$","754,784","","","","","$","(5,122)","","","(1)","%"],["Amortization expenses as a % of revenue","7","%","","8","%"]]
[[/GREPCENT_TABLE]]

Amortization expenses decreased in fiscal 2025 as compared to fiscal 2024, primarily as a result of a portion of our acquired intangible assets becoming fully amortized.

Special Charges, Net

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["Special charges, net","$","69,980","","","$","37,258","","","","","$","32,722","","","88","%"],["Special charges, net as a % of revenue","1","%","","\u2014","%"]]
[[/GREPCENT_TABLE]]

Special charges, net increased in fiscal 2025 as compared to fiscal 2024, primarily due to increased charges related to our Global Repositioning Actions. See Note 5, Special Charges, Net, of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for more information.

Nonoperating Expense (Income)

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["Nonoperating expense (income)","$","220,384","","","$","255,458","","","","","$","(35,074)","","","(14)","%"]]
[[/GREPCENT_TABLE]]

The year-over-year decrease in nonoperating expense in fiscal 2025 as compared to fiscal 2024 was primarily the result of higher interest income from higher cash, cash equivalents and short-term investments balances during fiscal 2025.

33

Provision for Income Taxes

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["","2025","","2024","","","","$ Change","","% Change"],["Provision for income taxes","$","444,770","","","$","142,067","","","","","$","302,703","","","213","%"],["Effective income tax rate","16.4","%","","8.0","%"]]
[[/GREPCENT_TABLE]]

Our effective tax rates for fiscal 2025 and fiscal 2024 were below the U.S. statutory rate of 21% due to lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. For fiscal 2025 and fiscal 2024 our pretax income was primarily generated in Ireland at a tax rate of 12.5%. Our effective tax rate for fiscal 2025 was impacted by a net deferred tax expense of $153.8 million related to the re

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ADI/mda/fy2025/
All MD&A years: /company/ADI/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ADI/mda/fy2024/): filed 2024-11-26; accession 0000006281-24-000204 (https://www.sec.gov/Archives/edgar/data/6281/000000628124000204/adi-20241102.htm)
- [FY 2023 MD&A](/company/ADI/mda/fy2023/): filed 2023-11-21; accession 0000006281-23-000203 (https://www.sec.gov/Archives/edgar/data/6281/000000628123000203/adi-20231028.htm)
- [FY 2022 MD&A](/company/ADI/mda/fy2022/): filed 2022-11-22; accession 0000006281-22-000250 (https://www.sec.gov/Archives/edgar/data/6281/000000628122000250/adi-20221029.htm)
- [FY 2021 MD&A](/company/ADI/mda/fy2021/): filed 2021-12-03; accession 0000006281-21-000294 (https://www.sec.gov/Archives/edgar/data/6281/000000628121000294/adi-20211030.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3674 Semiconductors & Related Devices) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ADI.md · JSON record: /company/ADI.json · verified financials: /company/ADI/financials.json / /company/ADI/financials.csv · machine TOC for the whole site: /llms.txt