Analog Devices, Inc. stock research
FY2025 Q4
Analog Devices (ADI) Gross Margin — Quarter Ended Nov 1, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved sequentially and year over year, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended Nov 1, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved sequentially and year over year, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
- The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose both sequentially and year over year. This indicates that gross profit grew at a faster pace than revenue, while cost of revenue remained relatively contained.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.1%
Gross profit
$1.9B
Revenue
$3.1B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+5.2 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 |
|---|---|---|---|---|
| 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% |
| Nov 1, 2025 | $3.1B | $1.9B | $1.1B | 63.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2025
+1.0 pts
Year-over-year change
Nov 2, 2024
+5.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose both sequentially and year over year. This indicates that gross profit grew at a faster pace than revenue, while cost of revenue remained relatively contained.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor whether cost of revenue remains stable in future quarters, as it was unchanged sequentially despite higher revenue.