Analog Devices Stock Surged 60%, Here’s Why
Over roughly nine months, Analog Devices (ADI) stock skyrocketed 58%, fueled by consistent earnings beats, strategic price hikes, and a stronger profit margin that captured investor confidence. With revenues climbing and optimism on dividends, the stage is set for even bigger moves ahead.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5082025 | 2022026 | Change | |
|---|---|---|---|
| Stock Price ($) | 200.4 | 316.9 | 58.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 9,337.6 | 11,019.7 | 18.0% |
| Net Income Margin (%) | 16.7% | 20.6% | 22.9% |
| P/E Multiple | 63.6 | 68.6 | 7.9% |
| Shares Outstanding (Mil) | 496.1 | 490.8 | 1.1% |
| Cumulative Contribution | 58.1% |
So what is happening here? The stock surged 58%, driven by an 18% rise in revenue, a 23% boost in net margin, and a 7.9% lift in P/E multiple. These shifts set the stage for the key updates ahead.
Here Is Why Analog Devices Stock Moved
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- Q4 FY25 Earnings Beat: Reported $3.08B revenue, $2.26 adj EPS, beat estimates, strong Q1 FY26 outlook.
- Price Hikes 2026: Announced 10-30% price increases effective Feb 1, 2026 due to inflation.
- Q3 FY25 Earnings Beat: Achieved $2.9B revenue, $2.05 adj EPS, exceeding Wall Street expectations.
- Q2 FY25 Earnings Beat: Reported $2.64B revenue, $1.85 EPS, with broad-based growth.
- Dividend Declaration: Declared quarterly cash dividend of $0.99/share on Nov 25, 2025.
Our Current Assesment Of ADI Stock
Opinion: We currently find ADI stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell ADI Stock to see what drives our current opinion.
Risk: A good way to gauge risk is by seeing how much ADI stock can fall in major market downturns. It sank nearly 70% in the Dot-Com crash and about 59% during the Global Financial Crisis. More recent shocks hit too — a 34% drop in the Covid pandemic and around 26% in the 2022 inflation surge. Even the smaller sell-offs, like the 2018 correction, sliced 23% off the price. Solid fundamentals matter, but when the market turns south, ADI isn’t immune to sizable dips.
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