Analog Devices — Income Statement, Cash Flows & Balance Sheet
Is Analog Devices profitable?
Analog Devices bounced back strongly in fiscal 2025, with revenue and profit both climbing sharply after a down year in fiscal 2024.
| Metric | FY2023 | FY2024 | FY2025 | Change (24→25) |
|---|---|---|---|---|
| Revenue | $12.31B | $9.43B | $11.02B | +17% |
| Gross Margin | $7.88B (64.0%) | $5.38B (57.1%) | $6.77B (61.5%) | +440 bps |
| Operating Income | $3.82B | $2.03B | $2.93B | +44% |
| Net Income | $3.31B | $1.64B | $2.27B | +39% |
| Diluted EPS | $6.55 | $3.28 | $4.56 | +39% |
The semiconductor industry is cyclical, and fiscal 2024 was a rough patch for Analog Devices — revenue fell nearly a quarter from its fiscal 2023 peak. Fiscal 2025 marks a meaningful recovery, with gross margins expanding and operating leverage kicking in. Note that fiscal 2024 included an unusually low tax rate (effectively 8%) due to favorable timing items; the fiscal 2025 tax provision also includes a one-time $153.8M charge from new legislation (the "One Big Beautiful Bill Act") remeasuring deferred tax liabilities, which mildly suppressed reported net income.
Where does Analog Devices' revenue come from?
Industrial and Automotive together account for three-quarters of revenue, with both segments growing meaningfully in fiscal 2025.
| End Market | FY2024 Revenue | FY2025 Revenue | Change |
|---|---|---|---|
| Industrial | $4.29B (46%) | $4.93B (45%) | +15% |
| Automotive | $2.84B (30%) | $3.28B (30%) | +15% |
| Consumer | $1.21B (13%) | $1.43B (13%) | +19% |
| Communications | $1.09B (12%) | $1.38B (13%) | +26% |
All four end markets grew, with Communications showing the sharpest rebound. Industrial remains the largest segment by far, though its share of the total has drifted down from 53% in fiscal 2023 as Automotive has become a more prominent part of the mix. Geographically, China was the fastest-growing major region, rising from $2.13B to $2.86B year-over-year.
Does Analog Devices generate cash?
Analog Devices is a strong cash generator, and it returned the majority of that cash to shareholders through dividends and buybacks.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Operating Cash Flow | $3.85B | $4.81B | +25% |
| Capital Expenditures | $730M | $534M | -27% |
| Free Cash Flow (est.) | ~$3.12B | ~$4.28B | +37% |
| Dividends Paid | $1.80B | $1.92B | +7% |
| Share Buybacks | $616M | $2.16B | +251% |
Operating cash flow significantly exceeded reported net income, largely because the company's large intangible asset amortization charges (a legacy of past acquisitions) are non-cash expenses that reduce accounting profit but not actual cash. Capital spending fell as a major investment cycle wound down, boosting free cash flow. Analog Devices stepped up buybacks sharply in fiscal 2025, returning a total of roughly $4.1 billion to shareholders through dividends and repurchases combined.
How strong is Analog Devices' balance sheet?
The balance sheet carries significant acquisition-related goodwill and intangibles, but liquidity is solid and debt is well-structured with no near-term maturities.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash + Short-term Investments | $2.36B | $3.65B | +55% |
| Total Long-term Debt | $6.63B | $8.15B | +23% |
| Goodwill + Intangibles | $36.49B | $34.96B | -4% |
| Total Shareholders' Equity | $35.18B | $33.82B | -4% |
Analog Devices raised $1.5B in new long-term debt during the year, used partly to fund buybacks. Despite that, liquidity improved substantially as cash and investments grew. The elephant in the room is the $35B of goodwill and intangibles on the balance sheet — a lasting footprint of the 2021 Maxim Integrated acquisition — which makes the balance sheet look asset-heavy in an accounting sense. These intangibles are steadily amortizing away (roughly $1.5B per year over the next few years), and the company has consistently passed its own goodwill impairment tests. The next significant bond maturity is not until December 2026, giving ample runway.