Analog Devices, Inc.

Q3 results beat outlook; strong profitability and record earnings - Revenue: $4.02B, above the high end of guidance; +11% sequentially and +40% YoY. - Gross margin: 72.5%, -50 bps sequentially but +33 bps YoY, driven by higher revenue/utilization and favorable mix. - Operating margin: 50% (high end of outlook), +100 bps sequentially and +780 bps YoY (better gross margin + execution discipline). - EPS: $3.45 (record), +12% sequentially, +68% YoY.

Q4 outlook: revenue continues strong; margins expected to rise further - Revenue: $4.3B ± $100M. - Operating margin: ~52% ± 100 bps at midpoint. - Adjusted EPS: $3.86 ± $0.15. - Gross margin expectation / question answered: Management indicated gross margin up to ~74% in Q4 (~+150 bps), mainly from: - Favorable mix + higher fixed-cost absorption and price adjustments. - Price action not fully reflected yet in prior quarters (some trailing impact expected into the next cycle). - Caution/seasonality: Q1 has a seasonal shutdown expected to create gross margin drag and some additional costs/inflation persistence.

Demand drivers: AI infrastructure + defense + industrial growth across a broad portfolio - End-market momentum highlighted as broad-based: Industrial (49% of revenue), Automotive (25%), Communications (16%), Consumer (10%). - Industrial: +10% sequentially, +53% YoY; strength in ATE/electronic test, aerospace & defense, automation. - Automotive: +14% sequentially, +16% YoY, attributed to content/share gains. - Communications / Data center: Communications up +18% sequentially and +84% YoY; data center is now ~80% of comms revenue with >100% YoY growth in optical and power. - Wireless: >25% YoY growth (described as partly cyclical tailwind).