Manufacturer of analog chips Analog Devices (NASDAQ:ADI) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 24.6% year on year to $2.88 billion. On top of that, next quarter’s revenue guidance ($3 billion at the midpoint) was surprisingly good and 6.4% above what analysts were expecting. Its non-GAAP profit of $2.05 per share was 5.1% above analysts’ consensus estimates.
Shares of manufacturer of analog chips Analog Devices (NASDAQ:ADI)
jumped 4% in the afternoon session after the company reported second-quarter 2025 financial results that surpassed analyst expectations and provided optimistic forward-looking guidance. The semiconductor firm announced second-quarter revenue of $2.88 billion, a 24.6% year-over-year increase that surpassed the consensus estimate of $2.76 billion. Adjusted earnings per share also came in ahead of projections at $2.05, compared to the expected $1.95.
Looking ahead, Analog Devices issued optimistic guidance for the third quarter, forecasting revenue of approximately $3.00 billion. This projection is significantly above Wall Street's expectation of $2.82 billion, signaling management's confidence in continued demand and a broader cyclical recovery in the semiconductor industry.
A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.
As the US market prepares to open on Wednesday, let's get an early glimpse into the pre-market session and identify the S&P500 stocks leading the pack in terms of gains and losses.
Analog Devices (ADI) reports strong Q3 results with 25% revenue increase and adjusted EPS of $2.05, beating analyst estimates. Stock up 3.92% premarket.
Manufacturer of analog chips Analog Devices (NASDAQ:ADI) announced better-than-expected revenue in Q2 CY2025, with sales up 24.6% year on year to $2.88 billion. On top of that, next quarter’s revenue guidance ($3 billion at the midpoint) was surprisingly good and 6.4% above what analysts were expecting. Its non-GAAP profit of $2.05 per share was 5.1% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the semiconductor sector rallied in intraday trading as a favorable inflation report bolstered investor hopes for a potential Federal Reserve interest rate cut. The latest Consumer Price Index (CPI) data showed a slowdown in inflation, fueling a broad market rally that pushed the S&P 500 and Nasdaq to new all-time highs. For the capital-intensive semiconductor industry, the prospect of lower interest rates is particularly welcome, as it can reduce borrowing costs for expansion and research and development. The positive macroeconomic sentiment provided a significant tailwind for the entire sector, as investors anticipate that a more accommodative monetary policy from the central bank will stimulate economic growth and demand for technology.
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
