Item 1. Financial Statements

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in thousands, except per share amounts)

			Three Months Ended
			February 1, 2025						February 3, 2024
Revenue			$	2,423,174					$	2,512,704
Cost of sales			992,871						1,038,763
Gross margin			1,430,303						1,473,941
Operating expenses:
Research and development			402,892						391,427
Selling, marketing, general and administrative			284,796						290,078
Amortization of intangibles			187,415						190,332
Special charges, net			63,887						16,140
Total operating expenses			938,990						887,977
Operating income:			491,313						585,964
Nonoperating expense (income):
Interest expense			75,264						77,141
Interest income			(23,487)						(9,169)
Other, net			3,960						4,574
Total nonoperating expense (income)			55,737						72,546
Income before income taxes			435,576						513,418
Provision for income taxes			44,260						50,691
Net income			$	391,316					$	462,727
Shares used to compute earnings per common share – basic			496,116						495,765
Shares used to compute earnings per common share – diluted			498,668						498,741
Basic earnings per common share			$	0.79					$	0.93
Diluted earnings per common share			$	0.78					$	0.93

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)

			Three Months Ended
			February 1, 2025						February 3, 2024
Net income			$	391,316					$	462,727
Foreign currency translation adjustments			(159)						385
Change in fair value of derivative instruments designated as cash flow hedges, net			(77)						8,020
Changes in pension plans, net			523						(1,388)
Other comprehensive income			287						7,017
Comprehensive income			$	391,603					$	469,744

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)

			February 1, 2025						November 2, 2024
ASSETS
Current Assets
Cash and cash equivalents			$	2,349,994					$	1,991,342
Short-term investments			371,460						371,822
Accounts receivable			1,192,442						1,336,331
Inventories			1,474,656						1,447,687
Prepaid expenses and other current assets			344,524						337,472
Total current assets			5,733,076						5,484,654
Non-current Assets
Net property, plant and equipment			3,355,240						3,415,550
Goodwill			26,945,180						26,909,775
Intangible assets, net			9,183,038						9,585,464
Deferred tax assets			2,032,676						2,083,752
Other assets			718,336						749,082
Total non-current assets			42,234,470						42,743,623
TOTAL ASSETS			$	47,967,546					$	48,228,277
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable			$	368,939					$	487,457
Income taxes payable			487,456						447,379
Debt, current			399,855						399,636
Commercial paper notes			548,403						547,738
Accrued liabilities			1,166,343						1,106,070
Total current liabilities			2,970,996						2,988,280
Non-current Liabilities
Long-term debt			6,618,556						6,634,313
Deferred income taxes			2,514,866						2,624,392
Income taxes payable			261,564						260,486
Other non-current liabilities			531,029						544,489
Total non-current liabilities			9,926,015						10,063,680
Shareholders’ Equity
Preferred stock, $1.00 par value, 471,934 shares authorized, none outstanding			—						—
Common stock, $0.16 2/3 par value, 1,200,000,000 shares authorized, 495,976,483 shares outstanding (496,296,854 on November 2, 2024)			82,664						82,718
Capital in excess of par value			25,041,250						25,082,243
Retained earnings			10,131,590						10,196,612
Accumulated other comprehensive loss			(184,969)						(185,256)
Total shareholders’ equity			35,070,535						35,176,317
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	47,967,546					$	48,228,277

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

(in thousands)

			Three Months Ended February 1, 2025
															Capital in												Accumulated Other
			Common Stock												Excess of						Retained						Comprehensive
			Shares						Amount						Par Value						Earnings						Loss
BALANCE, NOVEMBER 2, 2024			496,297						$	82,718					$	25,082,243					$	10,196,612					$	(185,256)
Net income																					391,316
Dividends declared and paid - $0.92 per share																					(456,338)
Issuance of stock under stock plans and other			411						68						41,679
Stock-based compensation expense															77,574
Other comprehensive income																											287
Common stock repurchased			(732)						(122)						(160,246)
BALANCE, FEBRUARY 1, 2025			495,976						$	82,664					$	25,041,250					$	10,131,590					$	(184,969)

			Three Months Ended February 3, 2024
															Capital in												Accumulated Other
			Common Stock												Excess of						Retained						Comprehensive
			Shares						Amount						Par Value						Earnings						Loss
BALANCE, OCTOBER 28, 2023			496,262						$	82,712					$	25,313,914					$	10,356,798					$	(188,302)
Net income																					462,727
Dividends declared and paid - $0.86 per share																					(426,076)
Issuance of stock under stock plans and other			676						113						49,706
Stock-based compensation expense															69,815
Other comprehensive income																											7,017
Common stock repurchased			(1,030)						(172)						(180,179)
BALANCE, FEBRUARY 3, 2024			495,908						$	82,653					$	25,253,256					$	10,393,449					$	(181,285)

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

			Three Months Ended
			February 1, 2025						February 3, 2024
Cash flows from operating activities:
Net income			$	391,316					$	462,727
Adjustments to reconcile net income to net cash provided by operations:
Depreciation			98,447						84,348
Amortization of intangibles			417,156						440,903
Stock-based compensation expense			77,574						69,815
Deferred income taxes			(59,454)						(102,149)
Other			(799)						4,684
Changes in operating assets and liabilities			202,569						178,504
Total adjustments			735,493						676,105
Net cash provided by operating activities			1,126,809						1,138,832
Cash flows from investing activities:
Additions to property, plant and equipment			(148,978)						(222,978)
Payments for acquisitions, net of cash acquired			(45,652)						—
Other			329						3,877
Net cash used for investing activities			(194,301)						(219,101)
Cash flows from financing activities:
Proceeds from commercial paper notes			1,969,276						2,779,494
Payments of commercial paper notes			(1,968,611)						(2,782,274)
Repurchase of common stock			(160,368)						(180,351)
Dividend payments to shareholders			(456,338)						(426,076)
Proceeds from employee stock plans			41,747						49,819
Other			438						(14,844)
Net cash used for financing activities			(573,856)						(574,232)
Net increase in cash and cash equivalents			358,652						345,499
Cash and cash equivalents at beginning of period			1,991,342						958,061
Cash and cash equivalents at end of period			$	2,349,994					$	1,303,560

See accompanying notes.

ANALOG DEVICES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED FEBRUARY 1, 2025 (UNAUDITED)

(all tabular amounts in thousands except per share amounts and percentages)

Note 1 – Basis of Presentation

In the opinion of management, the information furnished in the accompanying condensed consolidated financial statements reflects all normal recurring adjustments that are necessary to fairly state the results for these interim periods and should be read in conjunction with Analog Devices, Inc.’s (the Company) Annual Report on Form 10-K for the fiscal year ended November 2, 2024 (fiscal 2024) and related notes. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending November 1, 2025 (fiscal 2025) or any future period.

The Company has a 52-53 week fiscal year that ends on the Saturday closest to the last day in October. Fiscal 2025 is a 52-week fiscal year and fiscal 2024 was a 53-week fiscal year. The additional week in fiscal 2024 was included in the first quarter ended February 3, 2024. Therefore, the first three months of fiscal 2025 included one less week of operations as compared to the first three months of fiscal 2024.

Note 2 – Shareholders’ Equity

As of February 1, 2025, the Company had repurchased a total of approximately 208.4 million shares of its common stock for approximately $15.2 billion under the Company’s share repurchase program. As of February 1, 2025, an additional $1.5 billion remains available for repurchase of shares under the current authorized program.

Note 3 – Accumulated Other Comprehensive (Loss) Income

The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first three months of fiscal 2025.

			Foreign currency translation adjustment																		Unrealized holding gains/losses on derivatives						Pension plans						Total
November 2, 2024			$	(71,511)																	$	(85,202)					$	(28,543)					$	(185,256)
Other comprehensive income before reclassifications			(159)																		1,067						—						908
Amounts reclassified out of other comprehensive income			—																		(779)						523						(256)
Tax effects			—																		(365)						—						(365)
Other comprehensive income			(159)																		(77)						523						287
February 1, 2025			$	(71,670)																	$	(85,279)					$	(28,020)					$	(184,969)

The amounts reclassified out of AOCI into the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Shareholders’ Equity with presentation location during each period were as follows:

						Three Months Ended
Comprehensive (Loss) Income Component						February 1, 2025						February 3, 2024																		Location
Unrealized holding gains/losses on derivatives:
Currency forwards						$	(1,579)					$	(71)																	Cost of sales
						(847)						(69)																		Research and development
						(2,084)						(891)																		Selling, marketing, general and administrative
Interest rate derivatives						3,731						3,730																		Interest expense
						(779)						2,699																		Total before tax
						(158)						(848)																		Tax
						$	(937)					$	1,851																	Net of tax
Amortization of pension components included in the computation of net periodic pension cost:
Actuarial losses						$	523					$	516																	Net of tax
Total amounts reclassified out of AOCI, net of tax						$	(414)					$	2,367

Note 4 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

			Three Months Ended
			February 1, 2025						February 3, 2024
Net income			$	391,316					$	462,727
Basic shares:
Weighted-average shares outstanding			496,116						495,765
Earnings per common share basic:			$	0.79					$	0.93
Diluted shares:
Weighted-average shares outstanding			496,116						495,765
Assumed exercise of common stock equivalents			2,552						2,976
Weighted-average common and common equivalent shares			498,668						498,741
Earnings per common share diluted:			$	0.78					$	0.93
Anti-dilutive shares related to:
Outstanding stock-based awards			190						214

Note 5 – Special Charges, Net

Liabilities related to special charges, net are included in Accrued liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below:

Accrued Special Charges																					Global Repositioning Actions
Balance at November 2, 2024																					$	13,855
Employee severance costs, net																					56,334
Severance payments																					(2,887)
Balance at February 1, 2025																					$	67,302

The Company recorded net special charges of $63.9 million as part of its Global Repositioning Actions in the three months ended February 1, 2025. The Global Repositioning Actions were part of a transformation initiative aimed at aligning the Company’s enterprise strategy, organizational design and streamlining its operations to achieve its long-term strategic plan. The special charges include severance costs, in accordance with the Company’s ongoing benefit plan or statutory requirements at foreign locations, related to the termination of certain employees in manufacturing, engineering and selling, marketing, general and administrative roles.

Note 6 – Revenue

Revenue Trends by End Market

The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. As data systems for capturing and tracking this data and the Company’s methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.

			Three Months Ended
			February 1, 2025																		February 3, 2024
			Revenue						% of Revenue*						Y/Y%						Revenue						% of Revenue*
Industrial			$	1,077,900					44		%				(10)		%				$	1,191,713					47		%
Automotive			732,513						30		%				(2)		%				748,781						30		%
Consumer			322,900						13		%				19		%				270,211						11		%
Communications			289,861						12		%				(4)		%				301,999						12		%
Total revenue			$	2,423,174					100		%				(4)		%				$	2,512,704					100		%
* The sum of the individual percentages may not equal the total due to rounding.

Revenue by Sales Channel

The following table summarizes revenue by channel. The Company sells its products globally through a direct sales force, third-party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time.

			Three Months Ended
			February 1, 2025												February 3, 2024
Channel			Revenue						% of Revenue*						Revenue						% of Revenue*
Distributors			$	1,375,464					57		%				$	1,535,210					61		%
Direct customers			1,019,872						42		%				939,975						37		%
Other			27,838						1		%				37,519						1		%
Total revenue			$	2,423,174					100		%				$	2,512,704					100		%
* The sum of the individual percentages may not equal the total due to rounding.

Note 7 – Fair Value

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The tables below, set forth by level, present the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of February 1, 2025 and November 2, 2024. The tables exclude cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. As of February 1, 2025 and November 2, 2024, the Company held $1.5 billion and $1.4 billion, respectively, of cash that is excluded

from the tables below.

			February 1, 2025
			Fair Value Measurement at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)												Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds			$	636,075					$	—											$	636,075
Corporate obligations (1)			—						199,308												199,308
Short-term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)			—						71,178												71,178
Bank obligations (1)			—						300,282												300,282
Other assets:
Forward foreign currency exchange contracts (2)			—						3,277												3,277
Deferred compensation plan investments			99,750						—												99,750
Total assets measured at fair value			$	735,825					$	574,045											$	1,309,870
Liabilities
Forward foreign currency exchange contracts (2)			$	—					$	10,140											$	10,140
Interest rate derivatives (3)			—						52,152												52,152
Total liabilities measured at fair value			$	—					$	62,292											$	62,292

(1)The amortized cost of the Company’s investments classified as available-for-sale as of February 1, 2025 was $576.0 million.

(2)The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company’s master netting arrangements.

(3)The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements.

			November 2, 2024
			Fair Value Measurement at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)												Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds			$	592,560					$	—											$	592,560
Short-term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)			—						71,246												71,246
Bank obligations (1)			—						300,576												300,576
Other assets:
Forward foreign currency exchange contracts (2)			—						7,318												7,318
Deferred compensation plan investments			92,698						—												92,698
Total assets measured at fair value			$	685,258					$	379,140											$	1,064,398
Liabilities
Forward foreign currency exchange contracts (2)			$	—					$	16,279											$	16,279
Interest rate derivatives (3)			—						36,855												36,855
Total liabilities measured at fair value			$	—					$	53,134											$	53,134

(1)The amortized cost of the Company’s investments classified as available-for-sale as of November 2, 2024 was $382.9 million.

(2)The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company’s master netting arrangements.

(3)The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements.

Assets and Liabilities Not Recorded at Fair Value on a Recurring Basis

The table below presents the estimated fair values of certain financial instruments not recorded at fair value on a recurring basis. Given the short tenure of the Company’s commercial paper notes, the carrying value of the outstanding commercial paper notes approximates the fair values, and therefore, are excluded from the table below ($548.4 million and $547.7 million as of February 1, 2025 and November 2, 2024, respectively). The fair values of the senior unsecured notes are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy.

			February 1, 2025												November 2, 2024
			Principal Amount Outstanding						Fair Value						Principal Amount Outstanding						Fair Value
2025 Notes, due April 2025			$	400,000					$	398,932					400,000						397,027
2026 Notes, due December 2026			900,000						885,154						900,000						882,795
2027 Notes, due June 2027			440,212						422,252						440,212						421,077
2028 Notes, due October 2028			750,000						676,441						750,000						673,316
2031 Notes, due October 2031			1,000,000						843,581						1,000,000						843,766
2032 Notes, due October 2032			300,000						285,964						300,000						287,172
2034 Notes, due April 2034			550,000						549,282						550,000						553,375
2036 Notes, due December 2036			144,278						136,865						144,278						136,718
2041 Notes, due October 2041			750,000						533,268						750,000						534,435
2045 Notes, due December 2045			332,587						320,610						332,587						322,942
2051 Notes, due October 2051			1,000,000						636,853						1,000,000						655,668
2054 Notes, due April 2054			550,000						527,518						550,000						541,912
Total senior unsecured notes			$	7,117,077					$	6,216,720					$	7,117,077					$	6,250,203

Note 8 – Derivatives

Foreign Exchange Exposure Management — The total notional amounts of forward foreign currency derivative instruments designated as hedging instruments of cash flow hedges as of February 1, 2025 and November 2, 2024 were $261.6 million and $257.0 million, respectively, and the fair values of these instruments in the Company’s Condensed Consolidated Balance Sheets were as follows:

									Fair Value At
			Balance Sheet Location						February 1, 2025						November 2, 2024
Forward foreign currency exchange contracts			Prepaid expenses and other current assets						$	534					$	780
Forward foreign currency exchange contracts			Accrued liabilities						$	8,125					$	4,235

As of February 1, 2025 and November 2, 2024, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $174.8 million and $176.8 million, respectively, and the fair values of undesignated hedges in the Company’s Condensed Consolidated Balance Sheets were as follows:

									Fair Value At
			Balance Sheet Location						February 1, 2025						November 2, 2024
Undesignated hedges related to forward foreign currency exchange contracts			Prepaid expenses and other current assets						$	2,743					$	6,538
Undesignated hedges related to forward foreign currency exchange contracts			Accrued liabilities						$	2,015					$	12,044

Interest Rate Exposure Management — The Company does not consider the risk of counterparty default to be significant. The gain or loss on the Company’s interest rate swap transactions attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows:

						February 1, 2025
Balance Sheet Location						Loss on Swaps						Gain on Note
Accrued liabilities						$	52,152					$	—
Long-term debt						$	—					$	52,152

For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the Condensed Consolidated Statements of Income related to forward foreign currency exchange contracts, see Note 3, Accumulated Other Comprehensive (Loss) Income, in these Notes to Condensed Consolidated Financial Statements for further information.

Note 9 – Inventories

Inventories at February 1, 2025 and November 2, 2024 were as follows:

			February 1, 2025						November 2, 2024
Raw materials			$	81,485					$	93,608
Work in process			1,107,325						1,047,022
Finished goods			285,846						307,057
Total inventories			$	1,474,656					$	1,447,687

Note 10 – Income Taxes

The Company’s effective tax rates for the three-month periods ended February 1, 2025 and February 3, 2024 were below the U.S. statutory tax rate of 21.0%, due to lower statutory tax rates applicable to the Company’s operations in the foreign jurisdictions in which it earns income.

The Company has numerous audits ongoing throughout the world including: an IRS income tax audit for the fiscal years ended October 30, 2021, November 2, 2019 and November 3, 2018; a pre-acquisition IRS income tax audit for Maxim Integrated Products, Inc.’s (Maxim) fiscal years ended June 27, 2015 through August 26, 2021; and various U.S. state and local audits and international audits, including an Irish corporate tax audit for the fiscal year ended November 2, 2019. The Company’s U.S. federal income tax returns prior to the fiscal year ended November 3, 2018 are no longer subject to examination, except for the applicable Maxim pre-acquisition fiscal years noted above.

Note 11 – New Accounting Pronouncements

Standards to Be Implemented

Segment Reporting

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances the disclosure requirements for reportable segments. ASU 2023-07 requires segment disclosure to include significant segment expense categories and amounts, and qualitative detail of other segment items. Disclosure of multiple measures of segment profit and loss may also be reported. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial statement disclosures.

Income Taxes

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires the disaggregation of information in existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial statement disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, requiring public companies to disaggregate key expense categories such as inventory purchases, employee compensation and depreciation in their financial statements. This aims to improve investor insights into company performance. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial statement disclosures.

Note 12 – Subsequent Events

On February 18, 2025, the Board of Directors of the Company declared a cash dividend of $0.99 per outstanding share of common stock. The dividend will be paid on March 17, 2025 to all shareholders of record at the close of business on March 4, 2025 and is expected to total approximately $491.0 million.

Also on February 18, 2025, the Company’s Board of Directors authorized the Company to repurchase an additional $10.0 billion of its common stock, bringing the total remaining share repurchase authorization to approximately $11.5 billion. Under the share repurchase program, the Company may repurchase outstanding shares of its common stock from time to time on the open market or through privately negotiated transactions.