Analog Devices (NASDAQ:ADI) shares jumped over 3% in premarket trading Thursday after the semiconductor firm reported stronger-than-expected results for its fiscal second quarter of 2025, along with a positive forecast for the upcoming quarter.
The company posted adjusted earnings per share of $1.85, beating the analyst consensus estimate of $1.70. Revenue totaled $2.64 billion, surpassing expectations of $2.51 billion and reflecting a 22% year-over-year increase.
Analog Devices’ solid performance was fueled by double-digit year-over-year growth across all end markets, signaling a continued cyclical recovery. CEO Vincent Roche remarked that these results came “against a backdrop of global trade volatility,” underscoring ADI’s “strength and resiliency.”
Looking ahead to the third quarter, ADI expects revenue between $2.65 billion and $2.85 billion, with the midpoint exceeding the analyst consensus of $2.62 billion. Adjusted EPS guidance ranges from $1.82 to $2.02, also above the consensus forecast of $1.82.
CFO Richard Puccio noted strong bookings growth across all markets and regions, which drove a sequential increase in backlog. He said, “The improving demand signals we saw throughout our fiscal Q2 support our outlook for continued growth in Q3, and reinforce our view that we are in a cyclical upturn.”
During the quarter, the company generated $819 million in operating cash flow and returned $740 million to shareholders through dividends and share repurchases. ADI’s board approved a quarterly cash dividend of $0.99 per share, payable on June 18, 2025.