Analog Devices (ADI) Stock on December 2, 2025: Near Record Highs After Q4 Earnings Beat, AI Tailwinds and Fresh Analyst Upgrades

Published: December 2, 2025

Analog Devices, Inc. (NASDAQ: ADI) stock is trading just below record highs on December 2, 2025, as Wall Street digests a strong fourth-quarter earnings beat, an upbeat 2026 outlook and growing exposure to artificial intelligence (AI), industrial automation and automotive electronics. At the same time, the share price now embeds a premium valuation, prompting investors to weigh rich multiples against powerful secular growth drivers.

ADI stock today: price, performance and 52‑week range

As of early afternoon on December 2, 2025, Analog Devices shares trade around $267.93, up slightly on the day and only a fraction below their recent intraday highs. ^[1]

Key price and performance markers:

• Current price (intraday): ~$267.9
• 52‑week range: roughly $158.65 (low on April 7, 2025) to about $268–269 in late November/early December, putting the stock effectively at a new peak. ^[2]
• Market capitalization: ~$131 billion. ^[3]
• 12‑month total return: low‑20s percent, outpacing the S&P 500’s roughly 12–13% gain over the same period. ^[4]
• Year‑to‑date performance: around +25%, with a gain of more than 13% in the past month alone following the earnings release. ^[5]

Trading so close to its 52‑week high, ADI is now firmly in “leadership stock” territory within the semiconductor space, which helps explain the intense focus from analysts and institutional investors.

Q4 2025 earnings: beat on revenue, margins and EPS

Analog Devices reported fourth‑quarter fiscal 2025 (quarter ended November 1, 2025) results on November 25, beating Wall Street expectations on both top and bottom lines and setting a constructive tone for fiscal 2026. ^[6]

Headline numbers – Q4 FY25:

• Revenue:$3.08 billion, up about 26% year‑on‑year and ~7% sequentially, vs. analyst estimates around $3.01–3.02 billion. ^[7]
• Adjusted EPS:$2.26, up roughly 35% year‑on‑year, beating consensus (~$2.22–2.23). ^[8]
• Gross margin (Q4): about 69.8%, up both sequentially and versus the prior year. ^[9]
• Operating margin (Q4, adjusted): about 43.5%, up more than 2 percentage points year‑on‑year. ^[10]
• Record free cash flow:$4.3 billion for fiscal 2025, or roughly 39% of revenue. ^[11]

For the full fiscal year 2025, Analog Devices delivered:

• Revenue:$11.0 billion, up 17% vs. 2024.
• EPS: around $7.79, up about 22% year‑on‑year.
• Full‑year gross margin:69.3%.
• Full‑year operating margin:41.9%. ^[12]

Management highlighted robust demand across all key end markets and pointed specifically to AI, automation and energy‑efficiency trends as major demand drivers in industrial and data‑center infrastructure, alongside ongoing strength in automotive electronics. ^[13]

Notably, despite the beat, the stock initially dipped in pre‑market trading on the day of the release as investors weighed strong execution against already‑elevated expectations and valuation, before subsequently pushing to fresh highs in the following sessions. ^[14]

Where the growth is coming from: industrial, automotive, communications and consumer

One of Analog Devices’ key strengths is its diversified business‑to‑business end‑market mix, limiting dependency on any single device or consumer cycle. Q4 results underscore that diversification.

Based on company filings and earnings commentary, fourth‑quarter revenue by end market looked roughly as follows: ^[15]

• Industrial – ~46% of Q4 revenue (~$1.43B):
  • Up about 34% year‑on‑year and double‑digit sequentially.
  • Driven by investment in factory automation, robotics, aerospace and defense, medical devices, energy and power infrastructure, and AI‑enabled test equipment.
  • Management cited AI infrastructure, automation and efficient energy management as some of the most powerful forces behind growth in this segment. ^[16]
• Automotive – ~28% of Q4 revenue (~$0.85B):
  • Up about 19% year‑on‑year and modestly sequentially.
  • Benefiting from increased semiconductor content per vehicle in advanced driver‑assistance systems (ADAS), in‑car connectivity and infotainment, battery management and power electronics. ^[17]
• Communications – ~13% of Q4 revenue (~$0.39B):
  • Grew mid‑30s percent year‑on‑year, beating Street estimates. ^[18]
  • Benefiting from AI‑driven data‑center investment and high‑performance compute infrastructure, along with ongoing 5G and network upgrades.
• Consumer – ~13% of Q4 revenue (~$0.41B):
  • Up around 7% vs. the prior‑year quarter.
  • Exposure here is skewed to premium, system‑level solutions (e.g., audio, wearables and high‑end devices) rather than lower‑margin commodity components. ^[19]

Importantly, management noted that all four end markets delivered double‑digit growth over the full fiscal year, reflecting both cyclical recovery and share gains. ^[20]

Guidance: ADI sees momentum carrying into FY26

For the first quarter of fiscal 2026, Analog Devices guided above consensus on both revenue and earnings: ^[21]

• Revenue guidance: about $3.1 billion ± $100 million, versus Street expectations closer to $2.96–2.97 billion.
• Reported operating margin: around 31% ± 130 bps.
• Adjusted operating margin: roughly 43.5% ± 100 bps.
• Reported EPS: about $1.60 ± $0.10; adjusted EPS:$2.29 ± $0.10, again ahead of analyst forecasts.

Management expects industrial and communications to lead growth into early FY26, while automotive remains solid but more exposed to tariff and macro uncertainty. Analysts on the earnings call focused heavily on how long this above‑trend growth and margin expansion can persist as the semiconductor cycle matures. ^[22]

Capital returns: dividend, buybacks and institutional interest

1. Dividend and payout

Analog Devices remains a dividend‑growth and buyback story as well as a growth stock:

• The board declared a quarterly cash dividend of $0.99 per share, payable December 22, 2025 to shareholders of record as of December 8, 2025. ^[23]
• On an annualized basis, that equates to $3.96 per share, implying a dividend yield of roughly 1.4–1.5% at current prices. ^[24]
• Because GAAP earnings are still normalizing, the trailing payout ratio shows up as a bit above 100%, but against free cash flow of $4.3B the distribution looks more conservative. ^[25]

The company returned 96% of free cash flow to shareholders in fiscal 2025, split between approximately $2.2 billion of share repurchases and $1.9 billion of dividends. ^[26]

2. Institutional flows

Fresh filings show continued institutional interest:

• West Family Investments Inc. disclosed a new stake of 1,580 ADI shares in Q2, worth about $376,000, according to a December 2 MarketBeat report. ^[27]
• That article also notes that institutional investors and hedge funds collectively hold roughly 87% of ADI’s float, underscoring its status as a core large‑cap holding in many portfolios. ^[28]

Insider selling has been modest and largely consistent with regular diversification activity by executives and directors, according to recent SEC filings referenced in MarketBeat’s coverage. ^[29]

Manufacturing strategy and the ASE Penang deal

While ADI is leaning heavily into high‑margin design and system solutions, it is also reshaping its manufacturing footprint.

In October, the company announced a strategic collaboration with ASE Technology Holding under which ASE intends to acquire ADI’s Penang, Malaysia manufacturing facility and enter into a long‑term supply agreement: ^[30]

• ASE plans to purchase 100% of the equity in Analog Devices Sdn. Bhd., which operates the roughly 680,000‑square‑foot Penang plant.
• ADI and ASE will co‑invest to expand the site’s capabilities, while ASE will provide advanced packaging and testing services for ADI and other customers.
• The transaction is expected to close in the first half of 2026, subject to definitive agreements and regulatory approvals.

The deal is designed to enhance supply‑chain resilience and manufacturing flexibility while allowing ADI to focus even more on its high‑value analog, mixed‑signal, power and AI‑enabled platforms. Management has framed it as a way to scale capacity and technology without carrying the full capital burden on its own balance sheet. ^[31]

Valuation check: high multiples with a growth and AI premium

With the stock near all‑time highs, valuation is front and center in current coverage of ADI.

Using recent data from StockAnalysis, Yahoo Finance and other analytics platforms, ADI’s key valuation multiples around December 2, 2025 look roughly as follows: ^[32]

• Trailing P/E: ~58–60x based on trailing twelve‑month EPS.
• Forward P/E (next 12 months): around 26–27x.
• Price‑to‑sales: about 11–12x trailing revenue.
• Price‑to‑book: roughly 3.7–3.9x.
• Price‑to‑free‑cash‑flow: about 30x.
• PEG ratio (using consensus growth estimates): around 1.1–1.6, depending on the source and horizon.

From one angle, this is expensive — ADI trades at a premium to its own long‑term historical averages on most metrics. GuruFocus and other fundamental sites have flagged the high P/E and price‑to‑sales multiples as potential warning signs if growth were to slow. ^[33]

However, relative comparisons paint a more nuanced picture:

• A Zacks analysis published via Nasdaq recently highlighted that Analog Devices’ forward P/E near 24–25x was actually below the average forward P/E of its analog and mixed‑signal peer group, which sat above 40x at the time. ^[34]
• The same piece noted ADI’s PEG ratio sitting well below the industry average, suggesting investors are paying less per unit of expected growth than for some peers. ^[35]

Simply Wall St’s December 1 report illustrates the debate neatly:

• One “narrative‑driven” fair‑value estimate on their platform pegs ADI’s value around $280 per share, implying modest upside from recent prices.
• Their DCF‑based model, however, indicates the stock may already be trading above intrinsic value if aggressive growth and margin assumptions are not met. ^[36]

In short, the market is clearly awarding ADI a quality and AI/automation premium, but the stock leaves limited margin of safety for macro or execution missteps.

Analyst ratings and price targets: “Moderate to Strong Buy” consensus

Despite the rich multiples, the analyst community remains broadly positive on ADI.

Across major data providers, key points include: ^[37]

• Overall rating:
  • MarketBeat data shows 2 Strong Buy, 21 Buy and 9 Hold ratings, for an overall “Moderate Buy” consensus.
  • Other platforms, such as TipRanks, tally roughly 19 Buy and 4 Hold ratings out of 23 analysts over the past three months and label the stock a “Strong Buy.”
• 12‑month price targets:
  • Average/consensus targets generally cluster in the high‑$270s to mid‑$280s range.
    • MarketBeat: average around $281–282.
    • MarketWatch and StockAnalysis: mid‑$280s.
    • TipRanks: average near $283–284.
  • High targets: several firms, including Cantor Fitzgerald and Morgan Stanley, have raised their price objectives into the $293–$300 range, with some longer‑term bull cases extending to $320–$330.
  • Low targets: sit around $240, effectively defining the downside band in current Street models.

At the current ~$268 share price, that implies mid‑single‑digit to low‑teens upside to the average and most optimistic 12‑month targets, respectively.

IBD technical ratings: leadership status, but extended

Investor’s Business Daily (IBD) recently highlighted ADI’s strengthening technical profile: ^[38]

• ADI’s Composite Rating has climbed to 96 (out of 99), placing it among the market’s top‑ranked stocks on combined fundamental and technical measures.
• Its EPS Rating sits around 89, reflecting robust quarterly and annual earnings growth versus peers.
• The stock recently broke out from a flat base with a buy point around $258.13 and is now trading in the upper portion of its proper buy zone.
• Its Relative Strength (RS) Rating has improved into the low‑70s. While not yet in the 80+ “elite” territory, the trend is positive, and ADI ranks near the top of its Electronics–Semiconductor Manufacturing industry group, behind names like Taiwan Semiconductor.

This combination of strong fundamentals and constructive chart action is a big part of why ADI is increasingly appearing on institutional “watch lists” and momentum screens.

Strategic positioning: AI infrastructure, intelligent edge and Flex Logix

Beyond the quarter‑to‑quarter numbers, much of the bullish long‑term thesis around ADI centers on its role as an “AI infrastructure enabler” and Intelligent Edge powerhouse.

1. Core business: bridging the physical and digital worlds

Analog Devices designs and markets analog, mixed‑signal and digital signal‑processing ICs, along with power management and software, that convert, condition and process real‑world signals (temperature, motion, sound, pressure, etc.) into digital data for electronic systems. ^[39]

These building blocks are critical in:

• Industrial automation and robotics
• Automotive electronics and EVs
• Communications and data centers
• Healthcare and instrumentation

— all markets that stand to benefit from AI, advanced sensing and ubiquitous connectivity.

2. Flex Logix acquisition: embedded FPGA and AI acceleration

In early 2025, ADI made a notable move by acquiring Flex Logix, a specialist in embedded FPGA (eFPGA) and AI IP. ^[40]

The deal:

• Adds reconfigurable logic and AI acceleration IP that can be integrated directly into ADI’s SoCs and mixed‑signal platforms.
• Enables field‑upgradable, programmable hardware at the edge, where applications and standards are evolving rapidly.
• Strengthens ADI’s positioning in autonomous systems, industrial IoT, telecom infrastructure and AI at the edge, where low power, high reliability and long lifecycles are critical.

Industry commentary notes that combining ADI’s precision analog and power capabilities with Flex Logix’s eFPGA and AI technology could create highly differentiated platforms for customers who need both high performance and long‑term adaptability. ^[41]

3. AI infrastructure narrative

A recent Seeking Alpha analysis explicitly framed ADI as a key AI infrastructure play, arguing that its high‑performance analog, mixed‑signal and power solutions are essential for: ^[42]

• AI data centers and high‑performance computing, where power delivery, signal integrity and sensing are mission‑critical.
• Robotics and industrial automation, where AI and real‑time analytics are increasingly deployed at the edge.
• Autonomous and semi‑autonomous vehicles, which rely on a growing array of sensors, power electronics and connectivity.

The article rated ADI a “Buy,” highlighting its excellent profitability, robust free cash flow and diversified business model as supports for long‑term shareholder returns.

Key risks: tariffs, cyclicality, execution and valuation

Despite strong momentum, several risks are repeatedly flagged across recent coverage and company disclosures:

1. Tariffs and geopolitical uncertainty
   • ADI’s management has explicitly cited tariff policy and geopolitical tensions as potential headwinds, particularly for automotive and industrial customers that are sensitive to cost and cross‑border supply chains. ^[43]
2. Cyclical semiconductor demand
   • Although ADI’s B2B mix typically makes its cycles shallower than PC‑ or smartphone‑centric peers, it is still exposed to capex cycles and macro slowdowns in factories, data centers and automakers. Recent strong bookings trends could reverse if global growth slows. ^[44]
3. Margin and mix dynamics
   • Analysts have pressed management on why gross margins are not expanding even more quickly given higher utilization. The company has pointed to product and end‑market mix, particularly the growing share of automotive, as a margin headwind even as revenue grows. ^[45]
4. High valuation and limited margin of safety
   • With trailing P/E near 60x and price‑to‑sales above 11x, ADI is vulnerable to multiple compression if growth disappoints or if risk appetite fades in the broader market. Both Simply Wall St’s DCF work and GuruFocus commentary caution that the stock is priced for continued strong execution. ^[46]
5. Integration and strategic execution
   • ADI continues to integrate past acquisitions (e.g., Maxim Integrated) and now Flex Logix, while also executing the ASE Penang facility transaction. Delivering promised synergies, technology roadmaps and supply‑chain improvements will be crucial to justifying current multiples. ^[47]

What December 2, 2025 means for ADI shareholders and watchers

On December 2, 2025, Analog Devices finds itself in an enviable but demanding position:

• Fundamentals are firing: Q4 and full‑year 2025 results show broad‑based growth, rising margins and record free cash flow, with guidance pointing to continued strength into early 2026. ^[48]
• The balance sheet is strong, and the company is returning almost all free cash flow to shareholders via dividends and buybacks while still funding robust R&D and strategic transactions like Flex Logix and the ASE partnership. ^[49]
• AI, automation, automotive and data‑center exposure give ADI durable secular tailwinds that many growth investors seek in the semiconductor space. ^[50]
• At the same time, valuation is no longer cheap, leaving shareholders more reliant on continued execution, favorable macro conditions and sustained enthusiasm for AI‑related infrastructure plays. ^[51]

For long‑term investors, ADI increasingly looks like a high‑quality compounder at the intersection of multiple powerful trends, but with a price that assumes the company will keep delivering. For new entrants, the key questions are likely to revolve around time horizon and risk tolerance: whether to accept today’s multiples in exchange for exposure to those secular drivers, or to wait for potential pullbacks in a still‑cyclical industry.

As always, prospective investors should consider their own objectives, risk profile and diversification needs, and, if necessary, consult a qualified financial adviser before making any decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any security, or a solicitation to engage in any investment strategy.

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