adi-20250201

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 1, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 1-7819

Analog Devices, Inc.

(Exact name of registrant as specified in its charter)

Massachusetts

04-2348234

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

One Analog Way,

Wilmington,

01887

(Address of principal executive offices)

(Zip Code)

(781) 935-5565

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.16 2/3 par value per share	ADI	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of February 1, 2025 there were 495,976,483 shares of common stock of the registrant, $0.16 2/3 par value per share, outstanding.

PART I — FINANCIAL INFORMATION


ITEM 1.			Financial Statements

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in thousands, except per share amounts)


	Three Months Ended
	February 1, 2025		February 3, 2024
Revenue	$	2,423,174	$	2,512,704
Cost of sales	992,871		1,038,763
Gross margin	1,430,303		1,473,941
Operating expenses:
Research and development	402,892		391,427
Selling, marketing, general and administrative	284,796		290,078
Amortization of intangibles	187,415		190,332
Special charges, net	63,887		16,140
Total operating expenses	938,990		887,977
Operating income:	491,313		585,964
Nonoperating expense (income):
Interest expense	75,264		77,141
Interest income	(23,487)		(9,169)
Other, net	3,960		4,574
Total nonoperating expense (income)	55,737		72,546
Income before income taxes	435,576		513,418
Provision for income taxes	44,260		50,691
Net income	$	391,316	$	462,727

Shares used to compute earnings per common share – basic	496,116		495,765
Shares used to compute earnings per common share – diluted	498,668		498,741

Basic earnings per common share	$	0.79	$	0.93
Diluted earnings per common share	$	0.78	$	0.93

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)


	Three Months Ended
	February 1, 2025		February 3, 2024
Net income	$	391,316	$	462,727
Foreign currency translation adjustments	(159)		385

Change in fair value of derivative instruments designated as cash flow hedges, net	(77)		8,020
Changes in pension plans, net	523		(1,388)
Other comprehensive income	287		7,017
Comprehensive income	$	391,603	$	469,744

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)


	February 1, 2025		November 2, 2024
ASSETS
Current Assets
Cash and cash equivalents	$	2,349,994	$	1,991,342
Short-term investments	371,460		371,822
Accounts receivable	1,192,442		1,336,331
Inventories	1,474,656		1,447,687



Prepaid expenses and other current assets	344,524		337,472
Total current assets	5,733,076		5,484,654
Non-current Assets

Net property, plant and equipment	3,355,240		3,415,550
Goodwill	26,945,180		26,909,775
Intangible assets, net	9,183,038		9,585,464
Deferred tax assets	2,032,676		2,083,752

Other assets	718,336		749,082
Total non-current assets	42,234,470		42,743,623
TOTAL ASSETS	$	47,967,546	$	48,228,277
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	368,939	$	487,457


Income taxes payable	487,456		447,379
Debt, current	399,855		399,636
Commercial paper notes	548,403		547,738

Accrued liabilities	1,166,343		1,106,070
Total current liabilities	2,970,996		2,988,280
Non-current Liabilities
Long-term debt	6,618,556		6,634,313
Deferred income taxes	2,514,866		2,624,392

Income taxes payable	261,564		260,486

Other non-current liabilities	531,029		544,489
Total non-current liabilities	9,926,015		10,063,680

Shareholders’ Equity
Preferred stock, $1.00 par value, 471,934 shares authorized, none outstanding	—		—
Common stock, $0.16 2/3 par value, 1,200,000,000 shares authorized, 495,976,483 shares outstanding (496,296,854 on November 2, 2024)	82,664		82,718
Capital in excess of par value	25,041,250		25,082,243
Retained earnings	10,131,590		10,196,612
Accumulated other comprehensive loss	(184,969)		(185,256)
Total shareholders’ equity	35,070,535		35,176,317
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	47,967,546	$	48,228,277

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

(in thousands)


	Three Months Ended February 1, 2025
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss








BALANCE, NOVEMBER 2, 2024	496,297	$	82,718	$	25,082,243	$	10,196,612	$	(185,256)

Net income						391,316
Dividends declared and paid - $0.92 per share						(456,338)

Issuance of stock under stock plans and other	411	68		41,679
Stock-based compensation expense				77,574
Other comprehensive income								287
Common stock repurchased	(732)	(122)		(160,246)
BALANCE, FEBRUARY 1, 2025	495,976	$	82,664	$	25,041,250	$	10,131,590	$	(184,969)


	Three Months Ended February 3, 2024
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss







BALANCE, OCTOBER 28, 2023	496,262	$	82,712	$	25,313,914	$	10,356,798	$	(188,302)

Net income						462,727
Dividends declared and paid - $0.86 per share						(426,076)
Issuance of stock under stock plans and other	676	113		49,706
Stock-based compensation expense				69,815
Other comprehensive income								7,017
Common stock repurchased	(1,030)	(172)		(180,179)
BALANCE, FEBRUARY 3, 2024	495,908	$	82,653	$	25,253,256	$	10,393,449	$	(181,285)

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Three Months Ended
	February 1, 2025		February 3, 2024
Cash flows from operating activities:
Net income	$	391,316	$	462,727
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	98,447		84,348
Amortization of intangibles	417,156		440,903

Stock-based compensation expense	77,574		69,815



Deferred income taxes	(59,454)		(102,149)

Other	(799)		4,684
Changes in operating assets and liabilities	202,569		178,504
Total adjustments	735,493		676,105
Net cash provided by operating activities	1,126,809		1,138,832
Cash flows from investing activities:


Additions to property, plant and equipment	(148,978)		(222,978)


Payments for acquisitions, net of cash acquired	(45,652)		—
Other	329		3,877
Net cash used for investing activities	(194,301)		(219,101)
Cash flows from financing activities:








Proceeds from commercial paper notes	1,969,276		2,779,494
Payments of commercial paper notes	(1,968,611)		(2,782,274)
Repurchase of common stock	(160,368)		(180,351)
Dividend payments to shareholders	(456,338)		(426,076)
Proceeds from employee stock plans	41,747		49,819

Other	438		(14,844)
Net cash used for financing activities	(573,856)		(574,232)

Net increase in cash and cash equivalents	358,652		345,499
Cash and cash equivalents at beginning of period	1,991,342		958,061
Cash and cash equivalents at end of period	$	2,349,994	$	1,303,560

See accompanying notes.

ANALOG DEVICES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED FEBRUARY 1, 2025 (UNAUDITED)

(all tabular amounts in thousands except per share amounts and percentages)

Note 1 – Basis of Presentation

In the opinion of management, the information furnished in the accompanying condensed consolidated financial statements reflects all normal recurring adjustments that are necessary to fairly state the results for these interim periods and should be read in conjunction with Analog Devices, Inc.’s (the Company) Annual Report on Form 10-K for the fiscal year ended November 2, 2024 (fiscal 2024) and related notes. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending November 1, 2025 (fiscal 2025) or any future period.

The Company has a 52-53 week fiscal year that ends on the Saturday closest to the last day in October. Fiscal 2025 is a 52-week fiscal year and fiscal 2024 was a 53-week fiscal year. The additional week in fiscal 2024 was included in the first quarter ended February 3, 2024. Therefore, the first three months of fiscal 2025 included one less week of operations as compared to the first three months of fiscal 2024.

Note 2 – Shareholders’ Equity

As of February 1, 2025, the Company had repurchased a total of approximately 208.4 million shares of its common stock for approximately $15.2 billion under the Company’s share repurchase program. As of February 1, 2025, an additional $1.5 billion remains available for repurchase of shares under the current authorized program.

Note 3 – Accumulated Other Comprehensive (Loss) Income

The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first three months of fiscal 2025.


	Foreign currency translation adjustment		Unrealized holding gains/losses on derivatives		Pension plans		Total
November 2, 2024	$	(71,511)	$	(85,202)	$	(28,543)	$	(185,256)
Other comprehensive income before reclassifications	(159)		1,067		—		908
Amounts reclassified out of other comprehensive income	—		(779)		523		(256)
Tax effects	—		(365)		—		(365)
Other comprehensive income	(159)		(77)		523		287

February 1, 2025	$	(71,670)	$	(85,279)	$	(28,020)	$	(184,969)

The amounts reclassified out of AOCI into the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Shareholders’ Equity with presentation location during each period were as follows:


	Three Months Ended
Comprehensive (Loss) Income Component	February 1, 2025		February 3, 2024		Location
Unrealized holding gains/losses on derivatives:
Currency forwards	$	(1,579)	$	(71)	Cost of sales
	(847)		(69)		Research and development
	(2,084)		(891)		Selling, marketing, general and administrative

Interest rate derivatives	3,731		3,730		Interest expense

	(779)		2,699		Total before tax
	(158)		(848)		Tax

	$	(937)	$	1,851	Net of tax

Amortization of pension components included in the computation of net periodic pension cost:




Actuarial losses	$	523	$	516	Net of tax

Total amounts reclassified out of AOCI, net of tax	$	(414)	$	2,367

Note 4 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended
	February 1, 2025		February 3, 2024
Net income	$	391,316	$	462,727



Basic shares:
Weighted-average shares outstanding	496,116		495,765
Earnings per common share basic:	$	0.79	$	0.93
Diluted shares:
Weighted-average shares outstanding	496,116		495,765
Assumed exercise of common stock equivalents	2,552		2,976
Weighted-average common and common equivalent shares	498,668		498,741
Earnings per common share diluted:	$	0.78	$	0.93
Anti-dilutive shares related to:
Outstanding stock-based awards	190		214

Note 5 – Special Charges, Net

Liabilities related to special charges, net are included in Accrued liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below:


Accrued Special Charges	Global Repositioning Actions















































Balance at November 2, 2024	$	13,855
Employee severance costs, net	56,334

Severance payments	(2,887)


Balance at February 1, 2025	$	67,302

The Company recorded net special charges of $63.9 million as part of its Global Repositioning Actions in the three months ended February 1, 2025. The Global Repositioning Actions were part of a transformation initiative aimed at aligning the Company’s enterprise strategy, organizational design and streamlining its operations to achieve its long-term strategic plan. The special charges include severance costs, in accordance with the Company’s ongoing benefit plan or statutory requirements at foreign locations, related to the termination of certain employees in manufacturing, engineering and selling, marketing, general and administrative roles.

Note 6 – Revenue

Revenue Trends by End Market

The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. As data systems for capturing and tracking this data and the Company’s methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.


	Three Months Ended
	February 1, 2025						February 3, 2024
	Revenue		% of Revenue*		Y/Y%		Revenue		% of Revenue*
Industrial	$	1,077,900	44	%	(10)	%	$	1,191,713	47	%
Automotive	732,513		30	%	(2)	%	748,781		30	%
Consumer	322,900		13	%	19	%	270,211		11	%
Communications	289,861		12	%	(4)	%	301,999		12	%


Total revenue	$	2,423,174	100	%	(4)	%	$	2,512,704	100	%










* The sum of the individual percentages may not equal the total due to rounding.

Revenue by Sales Channel

The following table summarizes revenue by channel. The Company sells its products globally through a direct sales force, third-party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time.


	Three Months Ended
	February 1, 2025				February 3, 2024
Channel	Revenue		% of Revenue*		Revenue		% of Revenue*
Distributors	$	1,375,464	57	%	$	1,535,210	61	%
Direct customers	1,019,872		42	%	939,975		37	%
Other	27,838		1	%	37,519		1	%
Total revenue	$	2,423,174	100	%	$	2,512,704	100	%









* The sum of the individual percentages may not equal the total due to rounding.

Note 7 – Fair Value

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The tables below, set forth by level, present the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of February 1, 2025 and November 2, 2024. The tables exclude cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. As of February 1, 2025 and November 2, 2024, the Company held $1.5 billion and $1.4 billion, respectively, of cash that is excluded

from the tables below.


	February 1, 2025
	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds	$	636,075	$	—	$	636,075
Corporate obligations (1)	—		199,308		199,308

Short-term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		71,178		71,178

Bank obligations (1)	—		300,282		300,282








Other assets:
Forward foreign currency exchange contracts (2)	—		3,277		3,277
Deferred compensation plan investments	99,750		—		99,750

Total assets measured at fair value	$	735,825	$	574,045	$	1,309,870
Liabilities

Forward foreign currency exchange contracts (2)	$	—	$	10,140	$	10,140
Interest rate derivatives (3)	—

SEC Form 10-Q filed by Analog Devices Inc.