On this page of StockholderLetter.com we present the latest annual shareholder letter from ANALOG DEVICES INC — ticker symbol ADI. Reading current and past ADI letters to shareholders can bring important insights into the investment thesis.

 •  1/23/2026 Letter Continued (Full PDF)
 •  1/20/2023 ADI Stockholder Letter
 •  1/19/2024 ADI Stockholder Letter
 •  1/27/2025 ADI Stockholder Letter
 •  More "Semiconductors" Category Stockholder Letters
 •  ADI Benford's Law Stock Score = 85

ADI Shareholder/Stockholder Letter Transcript:

2025 Annual Report
investor.analog.com

Ahead of
What   s Possible
Analog Devices, Inc. (ADI) is a global semiconductor leader that bridges the physical and digital
worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, artificial
intelligence (AI), and software technologies into solutions that help drive advancements in
automation and robotics, mobility, energy and data centers, and healthcare, combat climate
change, and reliably connect humans and the world.
Our Market Performance
Our industry-leading scale, scope, and diversity enable strong market performance in analog, digital, and
software solutions.
FY2025 Revenue by End Market1
13%
Consumer
13%
Communications
$11.0B
Annual revenue
as of FY2025
30%
Automotive
45%
Industrial
(1)
The sum of the individual percentages may not equal 100% due to rounding.

Letter from our
CEO and Chair
Dear Fellow Shareholders,
In ADI   s fiscal 2025, we further demonstrated the enduring strength of our business model.
Even as the semiconductor industry navigated a complex cyclical recovery, and broader
geopolitical and macroeconomic uncertainty persisted, ADI delivered robust financial
performance and made meaningful strategic progress. Our diversified portfolio     spanning
industrial, healthcare, automotive, sustainable energy, data center infrastructure,
communications, and advanced consumer applications     once again provided optionality
and stability, enabling ADI to capture demand through the business cycle.
Durable Growth, Disciplined Execution
In fiscal 2025, revenue grew to $11 billion, up 17% year-over-year, driven by healthy demand across
all end markets. Our topline strength, paired with operational discipline, generated $4.8 billion in
operating cash flow (44% of revenue) and a record $4.3 billion in free cash flow, or 39% of revenue,
and we returned $4.1 billion to our shareholders through dividends and stock buybacks.
In a world rich with opportunity, we continued to sharpen our focus this year on the areas that
matter most as we build an even more exciting future for ADI.
Innovation has always been integral to ADI   s brand and value proposition, forming the foundation
for our superior financial performance. Accordingly, we continue to prioritize R&D as our most vital
capital allocation. We made record investments in 2025 to further extend our leadership in our core
analog, mixed signal, and power technologies. Simultaneously, we intensified our development
activities in software, digital, and artificial intelligence to augment our core franchise, enabling us
to address increased customer complexity and expedite their innovation cycles and time-to-market.
In addition, we continued to dedicate resources to explore emerging technology frontiers     on our
own and in partnership with leading institutional and ecosystem partners     to ensure ADI defines the
structural framework of the future.
The combination of our ever more comprehensive technology portfolio with our extensive
applications and domain expertise uniquely positions ADI to proactively identify and resolve our
customers    most complex engineering challenges and deliver solution-centric offerings that
capture higher levels of value. Further, we are pairing our powerful innovation engine with additional
investments in our development and deployment support environment, leveraging proprietary ADI
tools as well as leading ecosystem and open-source platforms, to further streamline and accelerate
our customers    product development cycles.
Analog Devices 2025 Annual Report
1

Over the last few years, we have also invested more than $3 billion in capital expenditures to
significantly enhance supply chain capacity, optionality, and resilience for our customers,
supporting our long-term vision for sustained growth.
Ultimately, these actions fortify our foundation for compounding value, and position ADI as the
trusted partner of choice as industries transform, new possibilities emerge, and our solutions
facilitate our customers    future leadership.
Our Past is Prologue to an Exciting Future
Over our history, we have combined semiconductor artistry with human insight to deliver
solutions that create lasting impact. For six decades, ADI has thrived by anticipating how markets,
technologies, and customer needs evolve     and by being first in getting ahead of those needs.
Today, customers are grappling with burgeoning technology complexity, increasing innovation
speeds, and the need for operational resiliency in an era of growing volatility. These dynamics are
playing out against the backdrop of a new epoch where a few key themes will shape the next era of
prosperity for ADI:
Automation is entering a new maturity curve as industries redesign how work gets done     from
adaptive factories and next-generation mobility, to defense systems and emerging classes of
robotics. Customers are moving toward highly sensed, software-defined, real-time systems
that demand precision, reliability, and autonomy at scale. ADI enables this shift by driving robust
sensing, signal integrity, tightly coupled control intelligence, and connectivity into the heart of
these machines, allowing them to operate faster, more safely, and with greater adaptability.
Healthcare is undergoing a structural transformation as rising demand, workforce strain, and cost
pressures accelerate the adoption of predictive, connected, and increasingly personalized models
of care. Providers and device makers need high-fidelity insight from the human body     continuous,
accurate, actionable, and at scale. ADI is central to this evolution, delivering industry-leading
biomedical sensing, ultra-efficient signal processing, and integrated AI capabilities that are
designed to unlock more accurate monitoring, earlier detection, and more responsive treatment.
Human Immersion: Across automotive, industrial, enterprise, and consumer segments, the
interface between people and technology is being reimagined to be more natural, immersive, and
context-aware. ADI powers these advancements through high-fidelity audio, precision sensing, and
spatial compute that make digital interactions feel seamless and real.
AI-Driven Computing & Connectivity: The computing landscape is in the middle of a step-change
as AI drives unprecedented demand for compute performance, power efficiency, and data
movement. Hyperscale data centers are being rebuilt around new power architectures,
connectivity layers, and signal-integrity solutions. ADI plays a foundational role in driving
system-level performance by providing high-efficiency power management, precision monitoring,
and advanced mixed-signal and optical connectivity that allow AI compute platforms to scale
reliably and more sustainably.
2
Analog Devices 2025 Annual Report

Energy Management is undergoing one of the most far-reaching
transformations since Edison. Electrification, renewables, storage, and
grid modernization are no longer discrete trends     they are converging into
a wholesale redesign of the world   s power infrastructure. Systems that
were once linear are becoming dynamic, distributed, and intelligent, with
massive pressure to deliver more performance from every watt. ADI sits at
the center of this shift, providing the precision power electronics, sensing,
and real-time control technologies that make modern energy systems more
efficient, more resilient, and more sustainable     from the generation source,
through the grid, all the way down to the chip.
Together, these domains embody where the technology sector   s biggest and
most important challenges lie. And they are where ADI is poised to accelerate
progress     at the intersection of the physical and digital worlds, where the
signal defines the performance of the system.
Architecting the Structural Foundation of a New
Epoch: The Era of Physical Intelligence
ADI thrives at the boundary where real-world signals become understanding.
We listen to, and interpret, the natural world     coaxing electrons from the
physical environment and transforming their essence into actionable,
computable intelligence. As AI moves more deeply into the world we inhabit,
ADI is positioned and equipped to play an even bigger role in the information
technology stack of the future.
To date, AI   s transformative breakthroughs have flourished within the data
center, made possible by the convergence of powerful semiconductor
platforms, algorithms accessible via software frameworks, and massive
datasets, enabling scalable training and deployment. This AI generation is
exemplified by Large Language Models (LLMs), and while these models are
immensely powerful, they derive their understanding of reality from text and
operate in servers, remaining disconnected from our physical world.
Today, a second
generation of AI
is emerging. We
call this    Physical
Intelligence.    This
generation fuses
sensing, reasoning,
and actuation with
domain expertise
to create systems
that don   t just
abstractly process
information, but live
within the context
of physical laws.
Today, a second generation of AI is emerging. We call this    Physical
Intelligence.    This generation fuses sensing, reasoning, and actuation
with domain expertise to create systems that don   t just abstractly process
information, but live within the context of physical laws. It operates where
data originates, and where latency, power, data provenance, and bandwidth
constraints at the edge demand new AI approaches, and architectures.
These novel requirements call for purposeful innovation, and ADI is leveraging
our technology stack to pioneer the solutions that allow autonomous systems
to    feel    their surroundings     bridging the gap between digital logic and
physical reality to transform what machines can achieve.
Analog Devices 2025 Annual Report
3



 1/23/2026 Letter Continued (Full PDF)