Wilmington, Massachusetts-based Analog Devices, Inc. (ADI) is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal, and digital signal processing integrated circuits. With a market cap of $81.6 billion, Analog Devices’ operations span the Americas, Europe, and the Indo-Pacific.

The tech giant is expected to report its second-quarter results before the markets open on Thursday, May 22. Ahead of the event, analysts expect ADI to report an adjusted EPS of $1.69, up 20.7% from $1.40 reported in the year-ago quarter. Moreover, the company has surpassed the Street’s bottom-line estimates in each of the past four quarters.

For the full fiscal 2025, ADI’s earnings are expected to come in at $7.11, marking a 11.4% increase from $6.38 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 21.1% year-over-year to $8.61 per share.

ADI stock has dropped 4.1% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 8.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 4.2% uptick during the same time frame.

Despite the challenging macro and geopolitical conditions, Analog Devices delivered better-than-expected financials, and its stock prices surged 9.7% following the release of its Q4 results on Feb. 19. While the company’s revenues declined 3.6% compared to the year-ago quarter to $2.4 billion, it surpassed the Street’s expectations by 2.8%. Meanwhile, its adjusted EPS dropped 5.8% year-over-year to $1.63, but exceeded the consensus estimates by 5.8%. Furthermore, its bookings continued to observe a gradual improvement in Q1, with strength in Industrial and Automotive positioning the company to grow sequentially and year-over-year in Q2 2025.

The consensus view on ADI remains optimistic, with a “Moderate Buy” rating overall. Of the 30 analysts covering the stock, opinions include 20 “Strong Buys,” one “Moderate Buy,” and nine “Holds.” Its mean price target of $247.41 suggests a 27.7% upside potential from current price levels.