Analog Devices, Inc. stock research
FY2025 Q3
Analog Devices (ADI) Gross Margin — Quarter Ended Aug 2, 2025
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also increased but at a slower pace, resulting in a higher gross profit and an improved gross margin. The relationship between revenue and cost of revenue drove the gross margin expansion.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2025 Q3
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also increased but at a slower pace, resulting in a higher gross profit and an improved gross margin. The relationship between revenue and cost of revenue drove the gross margin expansion.
- The strongest observable driver of gross margin was the faster growth in revenue relative to cost of revenue. A concrete item to monitor is the ongoing trend of revenue growth outpacing cost increases.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, all metrics were higher, with gross margin showing a significant improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.1%
Gross profit
$1.8B
Revenue
$2.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+5.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Nov 2, 2024 | $2.4B | $1.4B | $1.0B | 58.0% |
| Feb 1, 2025 | $2.4B | $1.4B | $992.9M | 59.0% |
| May 3, 2025 | $2.6B | $1.6B | $1.0B | 61.0% |
| Aug 2, 2025 | $2.9B | $1.8B | $1.1B | 62.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2025
+1.1 pts
Year-over-year change
Aug 3, 2024
+5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the faster growth in revenue relative to cost of revenue. A concrete item to monitor is the ongoing trend of revenue growth outpacing cost increases.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, all metrics were higher, with gross margin showing a significant improvement.
The filing's discussion of risk factors and forward-looking statements highlights potential uncertainties that could affect future margin trends.