August 25, 2025 /SemiMedia/ — Analog Devices (ADI), a leading analog chip manufacturer, reported third-quarter fiscal 2025 results ending August 2, with revenue of $2.88 billion, up 9% sequentially and 25% year-on-year, driven by double-digit growth across all end markets. CEO and Chairman Vincent Roche said, “Despite geopolitical challenges, our revenue and EPS exceeded expectations. Demand for ADI products remains strong, and our focus on innovation at the intelligent physical edge, along with a diversified business model, enables us to deliver long-term shareholder value under varying market conditions.”

The quarter saw operating margins rise to 42.2%, up 100 basis points sequentially and year-on-year. Non-operating expenses were $57 million, and the effective tax rate was 11.9%. EPS reached $2.05, 30% higher than a year ago and above the high end of company guidance. At quarter-end, ADI held $3.5 billion in cash and short-term investments, with a net leverage ratio of 1.1. Operating cash flow over the past 12 months totaled $4.2 billion, free cash flow $3.7 billion, and capital expenditures amounted to $500 million, consistent with the long-term 4%-6% of revenue model.

Looking ahead, ADI expects fourth-quarter revenue of approximately $3 billion, with industrial, communications, and consumer segments all growing, led by industrial, while automotive may decline slightly. CFO Richard Puccio noted continued order backlog growth and healthy bookings, particularly in industrial markets, positioning the company for a strong finish to fiscal 2025. ADI remains optimistic on China, a key driver of its recovery, over the next three to five years.

Texas Instruments (TI), another major analog chip company, also reported signs of industrial recovery. TI’s second-quarter fiscal 2025 revenue reached $4.45 billion, up 9% sequentially and 16% year-on-year, with operating profit of $1.56 billion, a 25% increase. TI President and CEO Haviv Ilan attributed the growth to broad-based industrial market recovery.

Overall, strong performances by both ADI and TI indicate that the analog chip sector is entering a new growth cycle, fueled by resurgent industrial demand.