Analog Devices Set to Report Q2 Earnings with Strong Expectations

Located in Wilmington, Massachusetts, Analog Devices, Inc. (ADI) specializes in semiconductor manufacturing, including analog, mixed-signal, and digital signal processing integrated circuits. With a market capitalization of $81.6 billion, the company’s operations extend across the Americas, Europe, and the Indo-Pacific region.

Anticipated Earnings Report and Analyst Expectations

Analog Devices is slated to release its second-quarter results before markets open on Thursday, May 22. Analysts predict ADI will report an adjusted EPS of $1.69, reflecting a 20.7% increase compared to the $1.40 reported in the same quarter last year. Notably, the company has outperformed the Street’s earnings projections for four consecutive quarters.

Fiscal Year Projections

For the full fiscal year 2025, ADI’s earnings are anticipated to reach $7.11, indicating an 11.4% rise from the $6.38 reported in fiscal 2024. Furthermore, projections for fiscal 2026 suggest earnings will climb 21.1% year-over-year to $8.61 per share.

Stock Performance Overview

Over the past 52 weeks, ADI’s stock has dropped 4.1%, underperforming the S&P 500 Index’s ($SPX) 8.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 4.2% rise during the same period.

Recent Financial Performance

Despite facing challenging macroeconomic and geopolitical conditions, Analog Devices delivered stronger than expected results for Q4, with stock prices surging 9.7% after the earnings announcement on February 19. Although revenues fell 3.6% year-over-year to $2.4 billion, this figure exceeded Street expectations by 2.8%. Adjusted EPS declined 5.8% year-over-year to $1.63, yet still surpassed consensus estimates by 5.8%. Additionally, bookings showed gradual improvement in Q1, driven primarily by strength in the Industrial and Automotive sectors, positioning ADI for growth both sequentially and year-over-year in Q2 2025.

Analyst Sentiment and Future Outlook

The consensus on ADI is largely positive, reflected in a “Moderate Buy” rating from analysts. Out of 30 analysts covering the stock, there are 20 “Strong Buys,” one “Moderate Buy,” and nine “Holds.” The mean price target of $247.41 indicates a potential upside of 27.7% from current prices.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data provided are solely for informational purposes. For more details, please see the Barchart Disclosure Policy here.

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