Analog Devices reported fourth‑quarter revenue of $3.08 billion, a 26% year‑over‑year increase that reflects a 12% rise in its Communications and Industrial segments and a 9% gain in Automotive, driven by strong demand for high‑performance analog solutions in data‑center and industrial automation markets. The quarter’s revenue growth outpaced the 17% increase seen over the full fiscal year, underscoring a momentum shift toward higher‑margin end markets.
Gross margin expanded to 63.1%, up 5.1 percentage points from the same period last year, while operating income rose to $945 million, a 66% jump that lifted the operating margin to 30.7%. The margin lift is largely attributable to a favorable product mix shift toward higher‑margin industrial and automotive chips, combined with disciplined cost management that kept raw‑material and manufacturing expenses in line with revenue growth.
Diluted earnings per share reached $1.60, beating the consensus estimate of $2.22 by $0.62, a 28% over‑performance. The reported figure is the GAAP diluted EPS; the adjusted EPS for the quarter was $2.26, beating the consensus of $2.23 by $0.03. The EPS beat is driven by the margin expansion and the absence of significant one‑time charges, while the adjusted EPS highlights the company’s core operating performance.
For the first quarter of fiscal 2026, Analog Devices guided revenue of $3.1 billion, +/- $100 million, and an operating margin of approximately 31.0%. The guidance exceeds analyst expectations for both revenue and margin, signaling management’s confidence in continued demand recovery and the company’s ability to sustain high operating leverage. The guidance also reflects the company’s view that the mix of high‑margin industrial and automotive business will remain strong into the next quarter.
The company returned 96% of its free cash flow to shareholders in fiscal 2025, comprising $2.2 billion in share repurchases and $1.9 billion in dividends, and declared a quarterly dividend of $0.99 per share. CEO Vincent Roche emphasized that the results “reflect the strength and resilience of our business model” and reaffirmed the company’s commitment to delivering long‑term value through continued investment in high‑growth segments and disciplined capital allocation.
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