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 $116.9 billion, Analog Devices’ operations span the Americas, Europe, and the Indo-Pacific.

The tech giant is expected to report its third-quarter results on Wednesday, Aug. 20. Ahead of the event, analysts expect ADI to report an adjusted EPS of $1.93, up 22.2% from $1.58 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, analysts expect Analog’s EPS to come in at $7.40, up nearly 16% from $6.38 reported in fiscal 2024. In fiscal 2026, its earnings are expected to surge 18.9% year-over-year to $8.80 per share.

ADI stock has dropped nearly 1% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 14.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 15.6% returns during the same time frame.

Despite delivering impressive results, ADI stock prices dropped 4.6% in the trading session following the release of its Q2 results on May 22. The company’s revenues for the quarter soared 22.3% year-over-year to $2.6 billion, coming in at the high end of its guidance. Further, its EPS increased 32% year-over-year to $1.85, surpassing the Street’s expectations by 9.5%.

However, its Q3 revenues guidance of $2.75 billion (midpoint) fell below several estimates, and the company expects the second half of 2025 to be marked with a slowdown in automotive demand, which raised investor concerns.

Nevertheless, analysts remain optimistic about ADI’s long-term prospects, and the stock holds a consensus “Moderate Buy” rating overall. Of the 32 analysts covering the stock, opinions include 21 “Strong Buys,” two “Moderate Buys,” and nine “Holds.” Its mean price target of $258.76 suggests a 13.5% upside potential from current price levels.