Analog Devices Gears Up for a Power Play

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Analog Devices is gearing up to release its Q2 earnings on May 22, with analysts expecting a 20.7% jump in adjusted EPS to $1.69. The company has beaten earnings expectations four quarters in a row, despite recent macro headwinds. Although its stock underperformed the S&P 500 over the past year, ADI surprised markets in Q4 by exceeding revenue expectations by 2.8%, even as revenue declined year-over-year. Its industrial and automotive segments are revving up, fueling expectations for sequential and year-over-year growth in Q2. With analysts largely bullish—20 out of 30 rating it a “Strong Buy”—the average price target suggests nearly 28% upside. The EPS forecast for fiscal 2026 expects a turbocharged 21.1% leap from the previous year. So while the past year saw a dip in share price, it might just be the calm before the semiconductor storm.

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Analog Devices is readying its Q2 2025 earnings release, scheduled for May 22. Analysts expect the company to post a strong adjusted EPS of $1.69, a 20.7% increase from last year. Despite a modest 4.1% drop in its stock price over the past 52 weeks, the company has been quietly building momentum under the hood.

In the last reported quarter, Analog Devices exceeded Wall Street expectations, sparking a 9.7% boost in share price. Revenue was down 3.6% year-over-year, clocking in at $2.4 billion, but still beat forecasts by 2.8%. Its adjusted EPS slipped 5.8%, but that too outperformed consensus estimates. These results underscore a recurring theme: ADI keeps pulling off earnings surprises, even as the macroeconomic landscape resembles a semiconductor obstacle course.

The company’s strength lies in its Industrial and Automotive segments, which are showing signs of accelerating demand. Bookings have been gradually improving, and ADI is projecting both sequential and year-over-year growth for Q2. This trend suggests that the worst may be in the rearview mirror, and the growth engine is warming up nicely.

Wall Street seems to agree. Out of 30 analysts, 20 have issued “Strong Buy” ratings, with a consensus price target of $247.41. That figure implies a 27.7% upside from the current stock level—enough to make long-term investors perk up like a chip on an espresso machine.

Looking ahead, fiscal 2025 earnings are projected to hit $7.11 per share, up 11.4% from last year. Fiscal 2026 looks even more ambitious, with expectations soaring 21.1% to $8.61 per share. ADI may not be the flashiest name in tech, but it’s proving that consistency, strategic focus, and a knack for beating expectations can still turn analog signals into digital dollars.