e838fee7ed983bd5ccfa75fb4d7be3cba1cd26dd274a1b777d0071b182c78759

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

1da8bc1e8c91f207aa88bcf305b179f639b469223d2792ec0000c42a754c1fd4

Analog Devices, Inc. (ADI) is a global leader in the semiconductor industry, specializing in solving complex engineering challenges by providing integrated circuits (ICs), software, and subsystems that utilize high-performance analog, mixed-signal, and digital signal processing technologies **[0000006281-24-000204_adi-20241102.htm:78]** **[0000006281-24-000204_adi-20241102.htm:5]**. The company operates in one reportable segment, focusing on the design, development, manufacturing, and marketing of a wide range of ICs, which are the primary source of its revenue **[0000006281-24-000204_adi-20241102.htm:107]**. ADI's product portfolio includes data converters, amplifiers, power management, radio frequency ICs, edge processors, and other sensors, catering to diverse applications across industrial, automotive, communications, and consumer markets **[0000006281-24-000204_adi-20241102.htm:78]** **[0000006281-24-000204_adi-20241102.htm:5]** **[0000006281-24-000204_adi-20241102.htm:8]**.

1. **Industrial Solutions** - Provides ICs and subsystems for industrial applications, focusing on automation, instrumentation, and energy management.
2. **Automotive Solutions** - Offers ICs and technologies for automotive applications, enhancing vehicle safety, efficiency, and connectivity.
3. **Communications Solutions** - Delivers ICs and systems for communication networks, supporting infrastructure and wireless connectivity.
4. **Consumer Electronics** - Supplies ICs for consumer devices, improving audio, video, and sensor functionalities.

1acbd1cddf789c2ce8afe9b325aece6d057415ee8c1c2e2faed94f4b16260522

39b3552028c89b2887caf889a444b9a48c3f73e9703d93b77cff82393543febd

| Metric [Unit: $ Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Industrial**           | 1,690  **[ADI_3228174_2]**  | 1,744.567  **[ADI_3252846_3]**  | 1,629  **[ADI_3310658_2]**  | 1,353.5  **[ADI_3367804_4]**  | 1,196.8  **[ADI_3374215_3]**  | 1,014.847  **[ADI_3390382_4]**  | 1,058.704  **[0000006281-24-000159_adi-20240803.htm:7]**  | 1,070.978  **[0000006281-24-000202_adiq424exhibit991.htm:10]**  |
| **Automotive**           | 718  **[ADI_3228174_2]**  | 784.775  **[ADI_3252846_3]**  | 748  **[ADI_3310658_2]**  | 731.4  **[ADI_3367804_4]**  | 739.2  **[ADI_3374215_3]**  | 658.238  **[ADI_3390382_4]**  | 670.304  **[0000006281-24-000159_adi-20240803.htm:7]**  | 716.964  **[0000006281-24-000202_adiq424exhibit991.htm:10]**  |
| **Communications**       | 488  **[ADI_3228174_2]**  | 453.530  **[ADI_3252846_3]**  | 381  **[ADI_3310658_2]**  | 340.2  **[ADI_3367804_4]**  | 302.6  **[ADI_3374215_3]**  | 240.776  **[ADI_3390382_4]**  | 266.599  **[0000006281-24-000159_adi-20240803.htm:7]**  | 275.573  **[0000006281-24-000202_adiq424exhibit991.htm:10]**  |
| **Consumer**             | 353  **[ADI_3228174_2]**  | 280.058  **[ADI_3252846_3]**  | 319  **[ADI_3310658_2]**  | 291.4  **[ADI_3367804_4]**  | 274.1  **[ADI_3374215_3]**  | 245.178  **[ADI_3390382_4]**  | 316.602  **[0000006281-24-000159_adi-20240803.htm:7]**  | 379.690  **[0000006281-24-000202_adiq424exhibit991.htm:10]**  |

b27cf20984865afa239565421caf66d26c612178a42fcb419ce38cdf698f1108

1. Given that your Industrial segment growth in Q4 was lower than expected and you are guiding Q1 down sequentially, what are the key factors that will drive Industrial growth above seasonal trends in fiscal '25, and when do you anticipate this acceleration?

2. With gross margins being pressured due to mix and low utilization rates, particularly in your Industrial segment, what specific strategies are you implementing to improve gross margins back to 70%, and how dependent is this improvement on revenue reaching $2.7 billion or more?

3. As AI moves to the edge and considering your recent investments in software platforms like **CodeFusion Studio** and **ADI Assure**, how do you see these software initiatives differentiating Analog Devices from competitors, and what impact do you expect them to have on your overall business and market positioning?

4. In your Automotive business, while growth areas like **GMSL**, **A2B**, and functional safe power grew over 10% in '24, the other half of your automotive portfolio declined by 10%; what are your plans to address the decline in your standard product portfolio and drive overall growth in Automotive in fiscal '25?

5. Given the volatility and high competition in the data center power management market, can you provide more details on your design win traction and how you plan to capitalize on medium-term opportunities, especially with your new product introductions and ecosystem strategy?

3aad49417d391d444ddbfb82d55f21e7cdbe069103d3228b905d611342c0a22e

Industrial

Automotive

Communications

Consumer

Distributors

Direct customers

Other

Total Revenue

01b3343d2176c8d64e9a7ac6ddd30dd7a239aac91bfb78e4367497f5a4f94799

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: Q1 2025
- **Guidance**:
  - **Revenue**: **$2.35 billion**, plus or minus **$100 million**  **[ADI_3410039_5]** .
  - **Operating Margin**: Approximately **40%**, plus or minus **100 basis points**  **[ADI_3410039_5]** .
  - **Tax Rate**: Between **12% to 14%**  **[ADI_3410039_5]** .
  - **Earnings Per Share (EPS)**: **$1.53**, plus or minus **$0.10**  **[ADI_3410039_5]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  - **Revenue**: **$2.4 billion**, plus or minus **$100 million**  **[ADI_3399551_3]** .
  - **Operating Margin**: **41%**, plus or minus **100 basis points**  **[ADI_3399551_3]** .
  - **Tax Rate**: Between **11% and 13%**  **[ADI_3399551_3]** .
  - **Earnings Per Share (EPS)**: **$1.63**, plus or minus **$0.10**  **[ADI_3399551_3]** .
  - **Segment Performance**:
    - **Industrial and Consumer**: Expected to increase sequentially  **[ADI_3399551_3]** .
    - **Communications**: Expected to be flattish  **[ADI_3399551_3]** .
    - **Automotive**: Expected to decrease sequentially  **[ADI_3399551_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  - **Revenue**: **$2.27 billion**, plus or minus **$100 million**  **[ADI_3390382_4]** .
  - **Operating Margin**: **40%**, plus or minus **100 basis points**  **[ADI_3390382_4]** .
  - **Tax Rate**: Between **11% and 13%**  **[ADI_3390382_4]** .
  - **Adjusted EPS**: **$1.50**, plus or minus **$0.10**  **[ADI_3390382_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  - **Revenue**: **$2.1 billion**, plus or minus **$100 million**  **[ADI_3374215_4]** .
  - **Operating Margin**: **37%**, plus or minus **100 basis points**  **[ADI_3374215_4]** .
  - **Tax Rate**: Between **11% to 13%**  **[ADI_3374215_4]** .
  - **Earnings Per Share (EPS)**: **$1.26**, plus or minus **$0.10**  **[ADI_3374215_4]** .

48fa274e1df895a4a8843ab2973f999d45dcba4116afbb42b6f0c51953021935

United States

Rest of Americas

Europe

Japan

China

Rest of Asia

Subtotal Foreign

a0688e97225ff0b3280e1f6701861424c23f2b4690b4a09f62ed1a6902cd597f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------|--------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Vincent Roche         | Chief Executive Officer and Chair of the Board of Directors              | May 2013         | Vincent Roche began his career with ADI in **1988**. He has served as CEO since **May 2013** and was elected Chair of the Board in **March 2022**. During his tenure, ADI's total shareholder return increased by 300% compared to the S&P 500's 190% increase as of the end of fiscal year 2022  **[0000006281-24-000014_adi-20240118.htm:67]** **[0000006281-24-000014_adi-20240118.htm:29]** **[0000006281-23-000016_a2023analogdevicenps.htm:20]** .                                               |
| Janene Asgeirsson     | Senior Vice President, Chief Legal Officer, Chief Risk Officer, Secretary| August 2021      | Janene Asgeirsson leads ADI's worldwide legal, governance, trade, and compliance functions. She acts as a strategic advisor to ADI's executive leadership team and Board of Directors and is responsible for the governance of the company's ESG programs  **[0000006281-24-000014_adi-20240118.htm:67]** **[0000006281-23-000016_a2023analogdevicenps.htm:51]** .                                                                                           |
| Gregory Bryant        | Executive Vice President and President of Business Units                 | March 14, 2022   | Gregory Bryant is responsible for growing ADI's business and ensuring alignment between long-term strategic goals and evolving technology trends. He brings three decades of experience in leading and scaling large organizations  **[0000006281-24-000014_adi-20240118.htm:67]** **[0001193125-23-043520_d441246ddefa14a.htm:2]** **[0000006281-23-000016_a2023analogdevicenps.htm:56]** .                                                                                                               |
| John Hassett          | Senior Vice President and Chief Operating Officer, Maxim Business        | August 2021      | John Hassett leads the strategic and operational efforts to integrate Maxim. He joined ADI in 1982 and has extensive experience as a business leader  **[0000006281-24-000014_adi-20240118.htm:67]** **[0000006281-23-000016_a2023analogdevicenps.htm:51]** .                                                                                                                                                                                               |
| Vivek Jain            | Executive Vice President of Global Operations and Technology             | May 2022         | Vivek Jain joined ADI following the acquisition of Maxim. He has significant experience in transforming manufacturing supply chains to enhance flexibility and resilience  **[0000006281-24-000014_adi-20240118.htm:69]** **[0000006281-23-000016_a2023analogdevicenps.htm:53]** .                                                                                                                                                                           |
| Alan Lee              | Senior Vice President and Chief Technology Officer                       | April 2023       | Alan Lee is responsible for developing and leading ADI's long-term technology strategy. Before joining ADI, he was the Corporate Vice President of Research and Advanced Development at AMD  **[0000006281-24-000014_adi-20240118.htm:69]** .                                                                                                                                                            |
| James Mollica         | Interim Chief Financial Officer                                          | October 2023     | James Mollica guides ADI's financial strategy and oversees the global finance organization. He has been with ADI for 35 years, holding roles of increasing responsibility  **[0000006281-24-000014_adi-20240118.htm:69]** **[0000006281-23-000203_adi-20231028.htm:156]** .                                                                                                                                                                           |
| Anelise Sacks         | Executive Vice President and Chief Customer Officer                      | April 2023       | Anelise Sacks oversees ADI's customer strategy, focusing on delivering a superior end-to-end customer experience and expanding go-to-market strategies  **[0000006281-24-000014_adi-20240118.htm:69]** **[0000006281-23-000016_a2023analogdevicenps.htm:53]** .                                                                                                                                                                                              |
| Mariya Trickett       | Senior Vice President and Chief People Officer                           | May 2022         | Mariya Trickett is responsible for supporting ADI's growth by driving best practices across all aspects of human resources  **[0000006281-24-000014_adi-20240118.htm:69]** **[0000006281-23-000016_a2023analogdevicenps.htm:53]** **[0000006281-23-000016_a2023analogdevicenps.htm:56]** .                                                                                                                                                                                                                       |
| Richard C. Puccio, Jr.| Executive Vice President and Chief Financial Officer                     | February 5, 2024 | Richard C. Puccio, Jr. will assume the role of Executive Vice President and Chief Financial Officer on **February 5, 2024**  **[0000006281-24-000024_xslF345X02/wk-form3_1707255780.xml:0]** .                                                                                                                                                                                                                           |
| Martin Cotter         | Senior Vice President, Vertical Business Units                           | December 1, 2024 | Martin Cotter was appointed as Senior Vice President, Vertical Business Units, effective **December 1, 2024**. He has been with ADI for over 35 years  **[0000006281-24-000204_ex1058martincotterofferlet.htm:0]** **[0001193125-24-262529_d803633d8k.htm:2]** .                                                                                                                                                                                            |

714ffb4e0f1d2bc83ed61d3a25b09344fb3e3bb8164d1696caa9c5859dbd8733

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **August 25, 2021**  **[0000006281-24-000204_adi-20241102.htm:57]** **[0000006281-24-000204_adi-20241102.htm:106]**  |
| End Date/Duration        | **Ongoing**  **[0000006281-24-000204_adi-20241102.htm:57]** **[0000006281-24-000204_adi-20241102.htm:106]**  |
| Total Additional Amount  | **$8.5 billion**  **[0000006281-24-000204_adi-20241102.htm:57]** **[0000006281-24-000204_adi-20241102.htm:106]**  |
| Remaining Authorization  | **$1.7 billion**  **[0000006281-24-000204_adi-20241102.htm:57]** **[0000006281-24-000204_adi-20241102.htm:106]** **[0000006281-24-000204_adi-20241102.htm:51]**  |
| Details                  | The program is part of a long-standing initiative to manage capital structure and return value to shareholders. Repurchases depend on financial position, results, outlook, liquidity, and other factors.  **[0000006281-23-000203_adi-20231028.htm:56]** **[0000006281-24-000204_adi-20241102.htm:57]**  |

0e04de7edac59e0352206bfa27424b39209edb9ce789d1b08bebf75744bdc124

**Quarterly guidance for Q1 2025:**
- **Revenue**: $2.35 billion, plus or minus $100 million  **[ADI_3410039_5]**  (lowered from $2.4 billion, plus or minus $100 million  **[ADI_3399551_3]** )  
- **Operating Margin**: 40%, plus or minus 100 basis points  **[ADI_3410039_5]**  (lowered from 41%, plus or minus 100 basis points  **[ADI_3399551_3]** )  
- **Tax Rate**: 12% to 14%  **[ADI_3410039_5]**  (raised from 11% to 13%  **[ADI_3399551_3]** )  
- **Earnings Per Share (EPS)**: $1.53, plus or minus $0.10  **[ADI_3410039_5]**  (lowered from $1.63, plus or minus $0.10  **[ADI_3399551_3]** )  

02b572be5062959fb5cedb02487dd33d402d192ef39e62dfede3ec6022e983dc

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1967  **[0000006281-24-000204_adi-20241102.htm:71]**  | Present  | Current auditor   |

9650f5e07fb65668e73d0caba7318dc15a92fef3bdc6aa809c8868a0bcfb54df

473f63e73c6b2db682f688898b70ee7616a9dbebdd721d5298ecf7f0deb0e4e7

- **Total Revenue**: $2,443 million (-10% YoY)  **[0000006281-23-000203_adi-20231028.htm:79]** **[0000006281-23-000203_adi-20231028.htm:75]** **[0000006281-23-000203_adi-20231028.htm:76]** **[0000006281-24-000204_adi-20241102.htm:73]** **[0000006281-24-000204_adi-20241102.htm:74]**   
- Industrial Segment: $1,044 million (-30% YoY)  **[0000006281-23-000203_adi-20231028.htm:51]** **[0000006281-24-000204_adi-20241102.htm:108]** **[0000006281-24-000204_adi-20241102.htm:52]** **[0000006281-24-000204_adi-20241102.htm:107]**   
- Automotive Segment: $760 million (+14% YoY)  **[0000006281-23-000203_adi-20231028.htm:51]** **[0000006281-24-000204_adi-20241102.htm:108]** **[0000006281-24-000204_adi-20241102.htm:52]** **[0000006281-24-000204_adi-20241102.htm:107]**   
- Communications Segment: $271 million (-9% YoY)  **[0000006281-23-000203_adi-20231028.htm:51]** **[0000006281-24-000204_adi-20241102.htm:108]** **[0000006281-24-000204_adi-20241102.htm:52]** **[0000006281-24-000204_adi-20241102.htm:107]**   
- Consumer Segment: $369 million (+40% YoY)  **[0000006281-23-000203_adi-20231028.htm:51]** **[0000006281-24-000204_adi-20241102.htm:108]** **[0000006281-24-000204_adi-20241102.htm:52]** **[0000006281-24-000204_adi-20241102.htm:107]**   
- Operating Income (EBIT): $569 million (-10% YoY)  **[0000006281-23-000203_adi-20231028.htm:79]** **[0000006281-23-000203_adi-20231028.htm:75]** **[0000006281-23-000203_adi-20231028.htm:76]** **[0000006281-24-000204_adi-20241102.htm:73]** **[0000006281-24-000204_adi-20241102.htm:74]**   
- R&D Expense: $379 million (-7% YoY)  **[0000006281-23-000203_adi-20231028.htm:79]** **[0000006281-23-000203_adi-20231028.htm:75]** **[0000006281-23-000203_adi-20231028.htm:76]** **[0000006281-24-000204_adi-20241102.htm:73]** **[0000006281-24-000204_adi-20241102.htm:74]**   
- Share Repurchases: $95 million (-80% YoY)  **[0000006281-23-000203_adi-20231028.htm:79]** **[0000006281-24-000204_adi-20241102.htm:77]**   

1e0ff68f1874ff4f6b5295ab401b4c4fad0b8c60026d1fff8f007bddae271e92

00bb6eb924d5c2a97e624c59092d5e9ae6248c7e252e821827862c692f05d4b3

| Year | Amount Due (in $ millions) | Debt Type                | Interest Rate (%) | % of Total Debt                                                                 |
|----------|--------------------------------|------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | 547.7                          | Commercial Paper Notes       | Market Rate  **[0000006281-24-000204_adi-20241102.htm:68]** **[0000006281-24-000204_adi-20241102.htm:128]**  | 6.6% = (547.7 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2025     | 400.0                          | 2025 Notes                   | Not Specified **[0000006281-24-000204_adi-20241102.htm:130]**  | 4.8% = (400.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2026     | 900.0                          | 2026 Notes                   | 3.5  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:122]**          | 10.9% = (900.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                   |
| 2027     | 440.2                          | 2027 Notes                   | 3.45  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:128]**         | 5.3% = (440.2 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2028     | 750.0                          | 2028 Notes                   | 1.7  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:125]**          | 9.1% = (750.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2031     | 1,000.0                        | 2031 Notes                   | 2.1  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:125]**          | 12.1% = (1,000.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                 |
| 2032     | 300.0                          | 2032 Notes                   | 4.25  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:126]**         | 3.6% = (300.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2034     | 550.0                          | 2034 Notes                   | 5.05  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:129]**         | 6.7% = (550.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2036     | 144.3                          | 2036 Notes                   | 4.5  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:122]**          | 1.7% = (144.3 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2041     | 750.0                          | 2041 Notes                   | 2.8  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:125]**          | 9.1% = (750.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2045     | 332.6                          | 2045 Notes                   | 5.3  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:122]**          | 4.0% = (332.6 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |
| 2051     | 1,000.0                        | 2051 Notes                   | 2.95  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:125]**         | 12.1% = (1,000.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                 |
| 2054     | 550.0                          | 2054 Notes                   | 5.3  **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:129]**          | 6.7% = (550.0 / 8,247.7) * 100  **[0000006281-24-000204_adi-20241102.htm:42]** **[0000006281-24-000204_adi-20241102.htm:93]** **[0000006281-24-000204_adi-20241102.htm:130]** **[0000006281-24-000204_adi-20241102.htm:68]**                                    |

ceeb6d0ebeee54684a04794fb4ad0292cf44e49c76e8a0fa25d3f1f48c677dc5

Number of countries with direct sales offices, sales representatives, or distributors (countries)

b41c1ab660df08ee1a91da2eb3b0973fe257593564f1c223c70f13b11ab2c48a

1. **Cyclical Bottoming and Growth Outlook**  
   **Q:** Will sequential growth continue into Q1?  
   **A:** Management expects a seasonal decline in Q1 but maintains optimism for a brisk growth in '25, depending on the macro environment.  **[ADI_3399551_7]** 

2. **Segment Guidance for Next Quarter**  
   **Q:** How will key segments perform in Q4?  
   **A:** Consumer is expected to grow about **10%**, industrial to grow high single digits sequentially, communications to be flat, and automotive to decline low single digits sequentially.  **[ADI_3399551_11]** 

3. **Automotive Inventory Digestion**  
   **Q:** What's happening with auto inventory levels?  
   **A:** Automotive customers are reducing production and burning off inventory, leading to expected declines in Q4 and continued inventory digestion into early '25.  **[ADI_3399551_5]** **[ADI_3399551_13]** 

4. **Gross Margins and Utilization Rates**  
   **Q:** How are gross margins and utilization trending?  
   **A:** Utilization rates are improving from previous lows but remain well below the normal **85%** level; this, along with favorable mix, is expected to benefit gross margins.  **[ADI_3399551_9]** **[ADI_3399551_10]** 

5. **Operating Expenses Outlook**  
   **Q:** How will OpEx change next quarter?  
   **A:** OpEx is expected to increase by about **5%** sequentially due to merit increases, which will pressure margins despite higher revenue and gross margin.  **[ADI_3399551_12]** 

6. **Industrial Bookings Visibility**  
   **Q:** Has industrial bookings visibility improved?  
   **A:** Visibility remains consistent, with continued sequential growth across all industrial sub-segments except automation.  **[ADI_3399551_14]** 

7. **China Bookings and Revenue**  
   **Q:** How is China performing?  
   **A:** China shows strong performance with double-digit bookings growth in industrial, auto, and comms, offset by a decrease in consumer; the design win pipeline is very strong.  **[ADI_3399551_15]** 

8. **Pricing Environment**  
   **Q:** Any changes in pricing impacting margins?  
   **A:** Pricing remains stable across geographies and customers; no significant impact on margins is expected from pricing changes.  **[ADI_3399551_16]** 

a2557b7f791e0f148b944900a0ffe1cad57a15d5c655afabe02cbf18260870f7

e1005e928494074e43db87bd9ccacfa49b7af1adc338fa89818701722582f6f6

- **Uncertainty in End Demand Visibility:** ADI acknowledges that it is "very hard to answer" questions about the true change in end demand due to ongoing inventory fluctuations and market uncertainties, making it challenging to predict near-term dynamics.  **[ADI_3390382_10]**
- **Uneven Demand Across Applications:** While the book-to-bill ratio is above 1 in all end markets, "not all applications within end markets are above 1," indicating that demand recovery is not uniform across all product lines and could impact overall growth.  **[ADI_3390382_8]**
- **Economic and Geopolitical Uncertainties:** ADI mentions that the size and pace of the recovery will have a "strong economic and geopolitical tone to it," suggesting that external uncertainties may negatively affect future growth prospects.  **[ADI_3390382_7]** **[ADI_3390382_10]**

472e8a2110077377ebbe3b9f591a5b0223b1e93f19d3e3acea28fce7c9dc9874

- **ADI anticipates robust growth in 2025**, with confidence increasing since last quarter that **Q2 was the cyclical bottom**, supported by a **record design win pipeline** and strong secular tailwinds.  **[ADI_3399551_4]**
- **Inventory levels are very lean**, with channel inventory at **the low end of the 7-8 week range**, positioning ADI well to meet the **anticipated demand upswing in 2025**.  **[ADI_3399551_9]** **[ADI_3399551_4]**
- **Strong bookings growth in China**, with **double-digit growth across industrial, auto, and communications**, and a **very strong design win pipeline** in the region.  **[ADI_3399551_15]**

d6f345e43c207925afa69ec24a33f0d31869371577783d1445551faba727cac4

- **ADI is guiding for a revenue decline of mid-30% year-over-year**, which is unprecedented outside of major downturns like 2001 and 2009, indicating a severe inventory correction.  **[ADI_3374215_5]**
- **Gross margins are expected to decline further to 67%** due to unfavorable mix and lower utilization, with the recovery trajectory being uncertain and dependent on unpredictable revenue trends.  **[ADI_3374215_8]** ,  **[ADI_3374215_6]** ,  **[ADI_3374215_13]**
- **The industrial segment is projected to decline over 20% sequentially in Q2**, reflecting continued weakness in ADI's core markets and significant challenges in its largest end market.  **[ADI_3374215_6]**

92cd355eaca2ce40af1bcdff1b331642f4f524e55ed5adb21d89a48d4e542f2a

- **ADI is well-positioned to capitalize on a market recovery**, with executives confident they have passed the low point of the cycle and expect continued growth in the second half of the year and strong growth in 2025.  **[ADI_3390382_7]**  They have significant inventory of **200 days** and invested over **$2.5 billion** to expand internal capacity, enabling rapid response to demand surges.  **[ADI_3390382_11]**
- **Margins are improving due to innovation and operational efficiency**, achieving operating margins above **40%** even in a trough.  **[ADI_3390382_13]**  They expect gross margins to expand modestly in the second half, anticipating gross margin above **67%** in Q3.  **[ADI_3390382_8]**
- **ADI is benefiting from increased demand driven by AI-related tailwinds**, particularly in their instrumentation and test business, which they see as a multi-year growth driver.  **[ADI_3390382_10]**  The company is witnessing **book-to-bill ratios above parity in all segments**, indicating broad-based bookings improvement across markets and geographies.  **[ADI_3390382_12]**

4055a667737acfc0112a5320a5bfc8dacc06ca0d259f568725dac7fec5d2bf19

1. **Industrial Market Recovery**  
   **Q:** What's driving the strength in industrial this quarter?  
   **A:** ADI expects the industrial segment to be the strongest performer in Q3, with growth starting after bottoming out in Q2. This recovery is supported by stronger PMIs and broad-based bookings for three consecutive quarters. They've reduced channel inventory, leading to over a year of under-shipping consumption, which stabilizes inventory headwinds. There are also **AI-related tailwinds** in their instrumentation and test business. **[ADI_3390382_6]**

2. **Gross Margin Outlook**  
   **Q:** How will gross margins trend, and what about pricing?  
   **A:** Gross margins bottomed in Q2, and ADI anticipates modest expansion in the second half, expecting a bit above **67%** in Q3. This improvement is aided by effective utilization of their manufacturing process and operational control over expenses. Pricing has been very stable across the portfolio, and ADI expects this to continue due to their innovative, non-commodity products with long life cycles. **[ADI_3390382_9]**

3. **Demand and Inventory Levels**  
   **Q:** What is the true change in end demand, excluding inventory effects?  
   **A:** It's challenging to quantify due to historical demand fluctuations, but ADI believes customer inventories are much healthier now, having under-shipped consumption for over a year. **Sell-through is increasing in Q3 from Q2**, indicating real demand across all end markets. They expect continued growth during the second half and strong growth in **2025**. **[ADI_3390382_8]**

4. **Supply Chain and Capacity**  
   **Q:** Is there a risk of tight supply ahead?  
   **A:** ADI is prepared for a potential surge in demand with about **200 days** of inventory on the balance sheet, mainly at the die level, allowing for quick response within weeks. They've invested over **$2.5 billion** in internal capacity and have strong partnerships, like with TSMC, ensuring manufacturing agility to meet customer needs. **[ADI_3390382_11]**

5. **Margin Profile Improvement**  
   **Q:** Why are through-cycle margins improving significantly?  
   **A:** The resiliency of ADI's manufacturing process allows them to adjust capacity efficiently, maintaining higher utilization even during downturns. They've shown strong operational control over expenses and continue to focus on innovation, leading to increased **ASPs year-on-year** and capturing more value. This strategy contributes to their strong margin profile, even in a difficult trough, with operating margins troughing above **40%**. **[ADI_3390382_13]**

6. **Market Recovery Outlook**  
   **Q:** What's the expected shape of the recovery?  
   **A:** ADI believes they've seen the bottom of the cycle and expects continued growth in the second half. While the exact shape is uncertain due to economic and geopolitical factors, they are confident in an upward trajectory and anticipate brisk growth in **2025**. **[ADI_3390382_7]**

7. **M&A Environment**  
   **Q:** Are there any plans for acquisitions?  
   **A:** ADI feels they are where they need to be in analog high-performance franchises. They are now focusing on adding more **software content**, digital capabilities, machine learning, and neural networking to get ahead of customer needs but are always looking for assets that fit strategically. **[ADI_3390382_10]**

8. **Book-to-Bill Ratios**  
   **Q:** Is book-to-bill above 1 in all segments?  
   **A:** Yes, the book-to-bill ratio is above **1** in all end markets, although not all applications within those markets. There has been broad-based improvement in bookings across all markets and geographies. **[ADI_3390382_6]**

d491ae254da50a2574ead92266cc00ccc19ac02b42bdda28983e7f71d707f311

1. **Gross Margin Outlook**  
   **Q:** What's the outlook for gross margins into Q1 and beyond?  
   **A:** Gross margins are expected to be slightly lower in Q1 due to seasonal factors and lower revenue.  **[ADI_3410039_11]**  We believe that as revenue grows beyond **$2.7 billion**, gross margins will improve and approach **70%**.  **[ADI_3410039_11]**  Recovery in industrial revenue and better utilization rates in the back half of fiscal 2025 will support this improvement.  **[ADI_3410039_11]** 

2. **Industrial Market Recovery**  
   **Q:** When will industrial growth exceed seasonal trends?  
   **A:** Industrial bookings have grown sequentially for two quarters since the trough in Q2.  **[ADI_3410039_8]**  We expect growth to resume after the Q1 seasonal decline, driven by normalization of undershipped demand, which we estimate at about **20%**.  **[ADI_3410039_8]**  The recovery's pace will depend on macroeconomic conditions, but we're confident in returning to growth in fiscal 2025.  **[ADI_3410039_8]** 

3. **Attainability of Prior Peak Revenue**  
   **Q:** Is the prior fiscal '23 peak revenue attainable?  
   **A:** We believe our portfolio and customer relationships are stronger than ever.  **[ADI_3410039_13]**  With a double-digit growth opportunity pipeline, we expect to resume double-digit growth throughout the rest of the decade.  **[ADI_3410039_13]**  We anticipate solid performance in fiscal '25, setting us on the path to reach and surpass previous peak levels.  **[ADI_3410039_13]** 

4. **Automotive Strength in China and EVs**  
   **Q:** How significant is China and EVs in Auto growth?  
   **A:** Stronger demand in China, driven by EV volume growth, share gains, and content growth, boosted our Auto segment.  **[ADI_3410039_6]**  Industrial and Automotive make up about **80%** of our China revenue.  **[ADI_3410039_6]**  Wireless BMS now represents **10%** of total BMS, with growth in China reflecting expanded share.  **[ADI_3410039_6]** 

5. **Automotive Pricing and Orders**  
   **Q:** How are orders and pricing in Auto growth areas?  
   **A:** Pricing remains stable as we focus on high-end products where performance is valued over price.  **[ADI_3410039_9]**  Growth areas like GMSL, A2B, and functional safe power grew over **10%** in fiscal '24, comprising about half of our Auto revenue.  **[ADI_3410039_9]**  We expect similar growth in fiscal '25, with BMS returning to growth as well.  **[ADI_3410039_9]** 

6. **Utilization Rates and Margins**  
   **Q:** How will utilization rates trend in fiscal 2025?  
   **A:** Utilization rates have modestly increased from the lows in Q2 due to our agile manufacturing.  **[ADI_3410039_15]**  As revenue picks up in fiscal '25, we expect utilization to continue increasing, supporting margin improvement.  **[ADI_3410039_15]** 

7. **Data Center Power Opportunities**  
   **Q:** What's the medium-term opportunity in data center power?  
   **A:** We have strong traction with power solutions for computing chips and server infrastructure, as well as optical control solutions up to **1.6 terabits**.  **[ADI_3410039_14]**  We're focusing on high-end solutions that make a significant impact in energy efficiency, partnering with processor companies and data center operators.  **[ADI_3410039_14]** 

8. **Seasonal Trends and Book-to-Bill**  
   **Q:** What is normal seasonal growth in fiscal Q2?  
   **A:** Seasonal Q2 growth is typically **low to mid-single digits**, driven by mid-single-digit increases in Industrial and Auto.  **[ADI_3410039_12]**  Book-to-bill is slightly below 1, which is normal and reflects the seasonally lower Q1 outlook.  **[ADI_3410039_12]** 

9. **Software Strategy and AI Differentiation**  
   **Q:** How does ADI differentiate in AI and software?  
   **A:** We're advancing from our analog base by using software to drive innovation and ease of use for customers.  **[ADI_3410039_10]**  We've released **CodeFusion Studio**, an open-source development environment, and **ADI Assure**, a security architecture that ensures data integrity from hardware to cloud.  **[ADI_3410039_10]** 

10. **Cycle Emergence and Drivers**  
    **Q:** Thoughts on cycle emergence and 2025 drivers?  
    **A:** We expect to return to positive growth in the second quarter.  **[ADI_3410039_7]**  Industrial is set to lead the recovery, followed by Consumer and Communications.  **[ADI_3410039_7]**  Automotive will see continued momentum, with BMS returning to growth in fiscal '25.  **[ADI_3410039_7]** 

689adef89a2c60d708e760e4d58c9f4284d96a1f39c3658e9ded3c3541bdedb3

- **Continued Weakness in the Automotive Sector**: ADI's automotive revenue has been declining, with auto being "down year-over-year for **two straight quarters**" and expected to be "down again in **Q4**" due to production cuts and inventory digestion across customers, particularly impacting their legacy automotive and electrification businesses. This trend is expected to continue into at least the early part of **2025**.  **[ADI_3399551_6]** **[ADI_3399551_13]** **[ADI_3399551_5]**
- **Lower Utilization Rates Affecting Gross Margins**: The company's internal utilization rates are "well off the normal level of **85%**" and are negatively impacting gross margins. Approximately half of the decline in gross margins over the past year is related to lower utilization.  **[ADI_3399551_10]**
- **Challenging Economic and Geopolitical Conditions Limiting Demand Recovery**: ADI acknowledges that "challenging economic and geopolitical conditions are limiting a faster demand recovery," and there is uncertainty about sequential growth continuing into the next quarter. They expect a "seasonal decline in the first quarter" with recovery dependent on macroeconomic factors.  **[ADI_3399551_7]** **[ADI_3399551_4]** **[ADI_3399551_8]**

8af42d0e3ba482920cfa3fae65b2d20e6f4f8c35ef9ed1ff5f77ad4da2163b4f

- **Bookings are improving across most sectors**, indicating a potential recovery in demand expected in the second half of fiscal 2024.  **[ADI_3374215_8]**
- The **worst of the inventory correction is expected to be over by the end of Q2**, and the company anticipates a return to a **more normalized growth pattern** in the second half as customers replenish their order books and bookings approach parity.  **[ADI_3374215_5]** **[ADI_3374215_12]** **[ADI_3374215_7]**
- Despite lower revenue, **Analog Devices has maintained strong gross margins**, and expects margins to improve in the second half as utilization increases and mix improves.  **[ADI_3374215_8]** **[ADI_3374215_13]**

f01227ea22d7019d14b467744fe1fc4814e119430366840c81a28502145af233

- **ADI expects double-digit growth through the rest of the decade**, supported by a **double-digit increase in their opportunity pipeline** year-over-year, and is well-positioned to capitalize on recovering markets in fiscal '25, particularly in industrial and communications sectors.  **[ADI_3410039_7]** **[ADI_3410039_13]**
- In Automotive, **strong demand in China** due to **EV volume growth**, **share gains**, and **content growth** has led to improved bookings, with **Battery Management Systems (BMS) expected to return to growth in fiscal year '25**. ADI's **wireless BMS solutions now account for 10% of total BMS**.  **[ADI_3410039_9]** **[ADI_3410039_6]**
- ADI's investments in software, including the launch of **CodeFusion Studio**, an open-source software development environment, and **ADI Assure**, a new security architecture, enhance their analog and mixed-signal offerings, making it easier for customers to adopt their solutions and differentiating ADI from competitors.  **[ADI_3410039_10]**

3514f05fe6f7033365ffaa719e5c913e42ed3767b92672821b4c4e4e16abba02

- ADI's Communications business declined over **30%** in fiscal **2024**, primarily due to an inventory digestion issue, and recovery depends on carrier CapEx investments in **5G**, which remain uncertain.  **[ADI_3410039_7]**
- Half of ADI's Automotive business, consisting of standard products, was down about **10%** in fiscal **2024**, with expectations of similar declines in fiscal **2025**, indicating ongoing weakness in this segment.  **[ADI_3410039_9]**
- ADI is still facing inventory headwinds in its Battery Management Systems (BMS) broadly, and despite some improvement in China, the overall recovery in BMS remains uncertain.  **[ADI_3410039_6]**

9dc8bfa9d23d542feb22e96163f3ca4967459fec3c67b6eee7134b4e8e9659ba

Analog Devices Inc (ADI)

Financials