Thu, May 22, 11:06 AM (33 days ago)
### Analog Devices, Inc. (ADI) Q1 2025 Financial Summary **Overview:** Analog Devices, Inc. (ADI) reported strong financial performance for the quarter ended May 3, 2025. The company saw significant revenue growth, improved profit margins, and robust cash flow, reflecting broad-based demand across various end markets. **Revenue and Profit Margins:** - **Revenue:** ADI reported revenue of $2,640,068,000 for the quarter, a 22% increase year-over-year (YoY). For the six months ended May 3, 2025, revenue was $5,063,242,000, an 8% increase YoY. - **Gross Margin:** Gross margin improved to 61.0% for the quarter, up from 54.7% in the same period last year. For the six months, the gross margin was 60.1%, up from 56.8%. - **Operating Income:** Operating income for the quarter was $677,944,000, a significant increase from $386,123,000 in the same period last year. For the six months, operating income was $1,169,257,000, up from $972,087,000. **Earnings and Cash Flow:** - **Net Income:** Net income for the quarter was $569,770,000, an 89% increase YoY. For the six months, net income was $961,086,000, a 26% increase YoY. - **Earnings Per Share (EPS):** Diluted EPS for the quarter was $1.14, up from $0.61. For the six months, diluted EPS was $1.93, up from $1.53. - **Cash Flow:** Net cash provided by operating activities for the six months was $1,946,287,000, slightly down from $1,946,685,000 in the same period last year. This decrease was primarily due to higher net income adjusted for non-cash items, offset by a decrease in working capital. **End Market Performance:** - **Industrial:** Revenue increased by 17% YoY for the quarter and 2% for the six months. - **Automotive:** Revenue increased by 24% YoY for the quarter and 11% for the six months. - **Consumer:** Revenue increased by 30% YoY for the quarter and 23% for the six months. - **Communications:** Revenue increased by 32% YoY for the quarter and 13% for the six months. **Sales Channels:** - **Distributors:** Revenue from distributors accounted for 56% of total revenue for both the quarter and the six months. - **Direct Customers:** Revenue from direct customers accounted for 43% of total revenue for the quarter and 42% for the six months. **Future Operations and Uncertainties:** ADI continues to invest in research and development, with expenses increasing by 25% YoY for the quarter and 13% for the six months. The company is also focused on strategic initiatives such as the Global Repositioning Actions, which included severance costs and the sale of a facility in Milpitas, CA. **Dividends and Share Repurchases:** - **Dividends:** The Board of Directors declared a cash dividend of $0.99 per share, to be paid on June 18, 2025. - **Share Repurchases:** The Board authorized the repurchase of $26.7 billion of common stock, with $11.4 billion remaining available for repurchases. **Conclusion:** ADI's strong financial performance in Q1 2025 reflects robust demand across key end markets and strategic investments in R&D and operational efficiency. The company's focus on innovation and cost management positions it well for future growth, despite potential uncertainties in the global economic and regulatory environment.