Total Revenue

22% increase (from $2.16B in Q2 2024 to $2.64B in Q2 2025) " " " " " " "

A strong rebound in demand across core segments—in particular, notable share gains in Automotive, Communications, and Consumer—helped reverse the prior period’s softness. Compared to earlier periods that saw declines (e.g., Q1 2025’s 4% drop), these improvements have contributed to robust top‐line growth. " " " " " " "

Operating Income

75% increase (from $386.1M in Q2 2024 to $677.9M in Q2 2025) " "

Improved operational efficiency and a favorable revenue mix drove a significant increase in operating income. The operating leverage effect is evident when compared to previously lower margins seen in earlier quarters, as better demand and cost management combine to produce a 75% jump. " "

Net Income

88% increase (from $302.2M in Q2 2024 to $569.8M in Q2 2025) " "

The leap in net income reflects both the higher operating income and improvements in nonoperating factors such as lower relative interest expense and favorable tax provisions. This contrasts with earlier periods where weaker revenue and margin pressures suppressed net income, making the current 88% jump a notable turnaround. " "

Basic EPS

Nearly doubled (from 0.61 in Q2 2024 to 1.15 in Q2 2025) " "

Stronger profitability and improved margins—evidenced by the jumps in both operating and net income—translated into a nearly 100% increase in EPS. This marks a significant recovery compared to past periods when EPS was under pressure from lower revenues and higher costs. " "

Automotive Revenue

29% increase (from $658.2M in Q2 2024 to $849.5M in Q2 2025) " " " " " "

Robust gains in the Automotive segment were driven by strong demand in Asia (especially from Chinese EV OEMs), improved share gains, and growth in connectivity and functionally safe power solutions. This positive trend builds on previous quarter performance that already showed strength in the Automotive market. " " " " " "

Communications Revenue

31% increase (from $240.8M in Q2 2024 to $315.1M in Q2 2025) " " " " " "

Enhanced investments in 5G infrastructure and the surge in AI-driven data center build-outs boosted the Communications segment. This improvement contrasts with previous periods where depressed demand (as seen in Q1 2024) weighed on this segment, thereby contributing to a 31% growth now. " " " " " "

Consumer Revenue

29% increase (from $245.2M in Q2 2024 to $317.8M in Q2 2025) " " " " " "

Gaining market share in a recovering consumer market drove the 29% increase in Consumer revenue. This improvement further reflects a turnaround from earlier quarters where Consumer revenue had been weak due to sluggish end demand. " " " " " "

Other Segment

7.5% decrease (from $37.1M in Q2 2024 to $34.2M in Q2 2025) " " " " " "

The slight decline in the Other segment indicates a contraction in non-core revenue, which contrasts with the stronger performances seen in the main segments. This may reflect strategic shifts and a concentration of efforts on higher-growth areas, building upon past periods where such categories received less emphasis. " " " " " "

Revenue ($USD Billions)

Q3 2025

$2.5 billion ± $100 million "

$2.75 billion ± $0.10 "

raised

Operating Margin (%)

Q3 2025

40.5% ± 100 basis points "

41.5% ± 1.0 "

raised

Tax Rate (%)

Q3 2025

11% to 13% "

11–13% "

no change

Adjusted EPS ($USD)

Q3 2025

$1.68 ± $0.10 "

$1.92 ± $0.10 "

raised

Automotive Market Dynamics

Previously discussed with modest sequential gains in Q1 2025 " " , strong demand in China and supply‐side pull‐ins in Q4 2024 " " , and near-term softness with inventory digestion in Q3 2024. " "

Q2 2025 delivered a record result with 32% revenue share, a 16% sequential and 24% YoY increase driven by tariff pull-in activity and robust growth in China. " " "

Improved sentiment in Q2 after earlier modest gains and near-term softness; strong sequential recovery with caution for Q3. " " "

Industrial Demand Recovery and Inventory Normalization

Across Q1 2025 " " , Q4 2024 " " and Q3 2024 " " , the narrative emphasized steady sequential improvements, reduced channel inventory and signs of normalization, with consistent recovery signals.

Q2 2025 continued the positive trend with industrial representing 44% of revenue, showing solid sequential and YoY growth and a strategy to balance lean channel inventories with higher on‐book levels. " " " "

Consistent recovery and normalization across periods with steady improvements in demand and inventory management.

Robust Order Backlog and Design Win Pipeline

Q1 2025 featured strong emphasis on order backlog and design wins fueling growth. " " Q4 2024 noted a record design win pipeline " and Q3 2024 highlighted a healthy own‐book backlog and robust design wins. "

In Q2 2025, there were strong signals from improved bookings and a growing backlog entering Q3; although explicit design win pipeline details were not provided, the overall order trends remained positive. " " "

Steady and sustained positive momentum; consistent strong backlog and design wins continue to underpin growth even as explicit mentions become less detailed in Q2.

Battery Management Systems Innovation and Recovery

Q1 2025 indicated BMS was poised for growth with higher wireless solution wins. " Q4 2024 provided detailed discussion on innovation, design wins and recovery across regions. " " Q3 2024 covered BMS tech for grid storage and noted inventory digestion. " " "

No specific mention in Q2 2025.

Reduced emphasis in Q2 2025 compared to previous periods; may indicate a pause in focus or integration into broader automotive themes.

New Product Innovations Driving Higher ASPs

Q1 2025 highlighted that new products were capturing higher ASPs and pulling legacy products. " Q4 2024 provided multiple examples in data centers, automotive, and consumer segments. " " " Q3 2024 reiterated the high-end market focus and stable pricing. "

Q2 2025 discussed innovations driving higher ASPs across megatrends such as healthcare, automotive, autonomy and AI computing, with products achieving ASPs 4x the industry average. " " "

Strong, consistent focus and positive sentiment; the narrative remains upbeat on innovation boosting ASPs, building on trends noted in previous periods.

Software and Digital Transformation Initiatives

Q3 2024 detailed growing digital and algorithmic capabilities and software-defined sensor systems. " Q4 2024 had extensive discussion on CodeFusion Studio, cybersecurity (ADI Assure) and digital customer engagement. " " Q1 2025 mentioned software-defined connectivity solutions. "

Q2 2025 did not specifically mention software or digital transformation initiatives. " " "

Reduced emphasis in Q2 2025 compared to a strong focus in Q3 and Q4 2024; indicates a potential temporary shift away from digital priorities.

Growth in Robotics and Advanced Automation

Q1 2025 noted growth in industrial automation and surgical robotics. " Q4 2024 referenced Industry 4.0 trends increasing robotics content by 3x. " Q3 2024 discussed evolution from fixed to humanoid robots and advanced automation benefits. "

Q2 2025 emphasized robotics at an inflection point driven by AI and noted strong industrial automation growth with rising design activity and capability enhancements. " " " "

Continued robust growth; sentiment remains upbeat with increasing focus on AI-driven robotics and automation, reflecting a mature and expanding opportunity.

Emerging AI-Driven Infrastructure and High-Speed Interfaces

Q1 2025 highlighted a growing pipeline in AI infrastructure via optical modules and power technologies. " Q4 2024 provided insights on innovative hot swap solutions for AI servers and development in test capabilities. " " Q3 2024 discussed ATE improvements for AI applications. "

Q2 2025 underlined the impact of AI through accelerated demand in ATE and data centers, with high-speed interface solutions addressing connectivity and power challenges. " " "

Steady and strong focus, with consistent messaging on AI-driven growth and high-speed connectivity; the narrative remains uniformly positive.

Geopolitical and Economic Uncertainty Impact

Q1 2025 acknowledged geopolitical turmoil and diversification strategies. " Q3 2024 noted that challenging geopolitical and economic conditions limited demand recovery. " " Q4 2024 indirectly mentioned macro challenges through inventory digestion cycles. " "

Q2 2025 discussed the impact of tariffs leading to pull-in activity in automotive and noted that industrial customers were steady amid uncertainty, while emphasizing supply chain resilience. " " " " "

Cautiously optimistic; while uncertainty remains a factor across periods, Q2 2025 reflects mixed effects—short-term pull-ins in automotive but a steadier industrial outlook, suggesting gradual stabilization.

Margin Pressure and Operating Expense Concerns

Q1 2025 reported improved gross margins and modest operating expense increases. " Q3 2024 detailed sequential gross margin improvements with controlled OpEx despite bonus and merit increases. " " " Q4 2024 discussed mix headwinds and higher OpEx from merit increases. " "

Q2 2025 showed a gross margin of 69.4% (up sequentially) with operating expenses rising due to variable compensation; outlook remains positive with anticipated operating leverage and marginal effects from salary increases. " " "

Improving margins and controlled expense growth over time; the current period reflects higher utilization and improved gross margin, though variable compensation remains a near-term factor.

Competitive Pressure from Indigenous Suppliers

Q1 2025 mentioned competitive pressure in mid-to-low performance segments. " Q3 2024 and Q4 2024 did not address this topic explicitly.

Q2 2025 did not contain any mention of competitive pressure from indigenous suppliers.

Diminished focus; while previously noted in Q1 2025, the topic has dropped out in later periods, possibly indicating reduced emphasis or concern.

Declining Emphasis on Communications Sector

Q3 2024 and Q4 2024 described mixed results with sequential improvements but overall challenges (especially in wireless). " " " Q1 2025 noted stable growth in wireline and challenges in wireless. "

Q2 2025 reported communications revenue at 12% of quarterly revenue, with sequential and YoY gains driven by wireline and data center demand, while wireless remained weaker. "

Shift towards recovery; while earlier periods flagged weaknesses (especially in wireless), Q2 2025 reflects a recovery in wireline driven by AI build-outs, suggesting a rebalancing rather than a de-emphasis of the sector.