Analog Devices Inc.

Strong Financial Results: Analog Devices reported Q2 revenue of $2.64 billion, exceeding expectations by 9% sequentially and 22% year-over-year (YOY). The industrial segment accounted for 44% of revenue with 17% YOY growth, followed by automotive at 24% YOY growth. Gross margin improved to 69.4%, and EPS reached $1.85, up 32% YOY.

Positive Outlook for Q3: Forecast for Q3 revenue is set at $2.75 billion, with expectations of continued growth in the industrial and consumer sectors. The company anticipates operating margin expansion to 41.5% and a tax rate of 11% to 13%, with adjusted EPS guidance of $1.92, indicating confidence in ongoing demand stabilization.

Cyclical Recovery with Tailwinds: Management highlighted that they believe revenue bottomed in 2024 and anticipate a cyclical upturn in 2025. Sequential growth was observed across all end markets, especially in aerospace, defense, and automotive, driven by increased demand for connectivity and power solutions.