Analog Devices (ADI), a leading semiconductor stock, jumped roughly 6.3% on Aug. 20 after reporting fiscal third-quarter results that surpassed Wall Street expectations. The gain was notable, as most other semiconductor stocks traded lower.

The surge reflects sustained demand for Analog Devices' products, even amid tariffs and trade uncertainties. The company’s relentless focus on cutting-edge innovation positions it to capitalize on the growing opportunities at the intelligent physical edge.

Analog Devices closed the quarter with continued backlog growth and healthy bookings trends, particularly in the Industrial segment. Combined with a strong outlook for the fourth quarter, these results position the company to finish fiscal 2025 with strength.

Analysts are signaling optimism around ADI stock as they respond to its stronger-than-expected quarterly performance and robust guidance. Shares have climbed 10% over just the past five days, leaving investors watching closely to see how much higher the stock can go.

About Analog Devices Stock

Headquartered in Wilmington, Massachusetts, Analog Devices operates as a global semiconductor leader carrying a market capitalization of approximately $122 billion. The company designs, manufactures, tests, and markets a diverse portfolio of solutions, encompassing integrated circuits, software, and subsystems that leverage high-performance analog, mixed-signal, and digital signal processing technologies. 

Year-to-date (YTD), ADI stock has surged 20%, significantly outperforming the S&P 500 Index ($SPX), which has advanced 10% over the same period. The robust performance underscores the market’s recognition of the company’s operational strength and growth potential.

Valuation metrics further reflect confidence in ADI's trajectory, with shares trading at 31.14 times forward adjusted earnings and 12.89 times sales, placing it above industry norms. Such multiples indicate investors are pricing in both the current solid performance and the promise of future innovation.

Analog Devices has also demonstrated a strong commitment to shareholders, growing dividends for 21 consecutive years and providing an annual payout of $3.96 per share, equating to a 1.55% yield. The most recent quarterly dividend of $0.99 per share is scheduled for Sept. 16, with shareholders of record as of Sept. 2 set to receive the payment.

Analog Devices Surpasses Q3 Earnings

Analog Devices reported fiscal Q3 2025 results that surpassed expectations, affirming its position in the semiconductor sector. The company’s revenue rose 25% year-over-year (YOY) to $2.88 billion, beating analyst forecasts of $2.76 billion. 

The firm's Industrial segment continued to shine, posting a 23% increase YOY to $1.29 billion. Automotive revenue climbed 22% to $850.6 million, reflecting steady demand in a competitive market. The Consumer segment contributed $372.2 million, a 21% YOY gain, while Communications revenue soared 40% to $372.5 million.

Margins strengthened as well, with the adjusted gross margin improving by 130 basis points to 69.2% and the adjusted operating margin rising by 100 basis points to 42.2%. Net income increased 32% from the previous year to $518.6 million, while adjusted EPS grew 30% to $2.05, topping the Street expectation of $1.93.

On the balance sheet front, cash and cash equivalents stood at $2.32 billion as of Aug. 2, complemented by $1.15 billion in short-term investments. Operationally, the company generated $1.17 billion in operating cash flow and $1.09 billion in free cash flow for the quarter.

Looking ahead to Q4, management projects revenue of $3 billion, plus or minus $100 million, with reported operating margins of approximately 30.5%, adjusted operating margins near 43.5%, and planned EPS of $1.53 reported, $2.22 adjusted. 

Meanwhile, analysts anticipate a 33% EPS increase for Q4 to $2.23, while the full-year fiscal 2025 bottom line is expected to grow 19% to $7.61. Projections for 2026 point to a 19% EPS rise to $9.05.

What Do Analysts Expect for Analog Devices Stock?

Jefferies recently increased its price target to $280 from $270 while maintaining a “Buy” rating on ADI stock, highlighting the company’s strong Industrial segment. Evercore also maintained an “Outperform” rating with a $280 target, pointing to revenue beats and a favorable demand outlook. 

Similarly, Stifel raised its target to $280 from $270, citing the July quarter sales beat and October guidance that exceeded prior estimates, underscoring the firm’s belief in Analog Devices’ unique value proposition and potential for above-industry growth. 

Analysts assign ADI stock an overall rating of “Moderate Buy.” Currently, 33 analysts cover ADI, with 20 rating it a “Strong Buy,” three recommending a “Moderate Buy,” and 10 analysts suggesting a “Hold" rating. 

ADI stock’s average price target of $259.62 represents potential upside of 1.4%, while the Street-high target of $300 reflects a 17% potential gain from current levels.