Analog Devices Reports Record Fourth Quarter and Fiscal 2022

Analog Devices Reports Record Fourth Quarter and Fiscal 2022 Results

Fourth quarter revenue of $3.25 billion with all markets growing sequentially
Fiscal 2022 revenue of $12 billion; B2B markets of Industrial, Automotive, and Communications each achieved records
Fiscal 2022 operating cash flow of $4.5 billion and free cash flow of $3.8 billion, or 31% of revenue, after investing a record $699 million in capital expenditures
Returned $4.6 billion to shareholders through $3.1 billion of share repurchases and $1.5 billion of dividends in fiscal 2022

WILMINGTON, Mass. — (BUSINESS WIRE) — November 22, 2022 — Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today announced financial results for its fourth quarter and fiscal year 2022, which ended October 29, 2022.

“ADI delivered its seventh consecutive quarter of record revenue, bringing 2022 to a strong close. Our B2B markets of Industrial, Automotive and Communications reached all-time highs, while our Consumer business delivered another year of strong growth. Our team’s execution, combined with strong operating leverage, enabled the most profitable year in ADI’s history,” said Vincent Roche, CEO and Chair. “While the economic backdrop continues to cause demand uncertainty, we are well-positioned in the near-term with stabilizing orders, a strong backlog, and continued design win momentum.”

Roche continued, “ADI has successfully navigated many business cycles over our nearly six-decade history, and today, our business is more resilient than ever. We have increased our scale and diversification, added more manufacturing agility, and fortified our customer brand. These strengths enable ADI to maintain our unwavering commitment to innovation and develop breakthrough solutions at the intelligent edge, while delivering long-term value for all stakeholders.”

Performance for the Fourth Quarter and Fiscal 2022
Results Summary⁽¹⁾
(in millions, except per-share amounts and percentages)

	Three Months Ended								Twelve Months Ended
	Oct 29, 2022			Oct 30, 2021			Change		Oct 29, 2022			Oct 30, 2021			Change
Revenue	$	3,248		$	2,340		39	%	$	12,014		$	7,318			64	%
Gross margin	$	2,143		$	1,122		91	%	$	7,532		$	4,525			66	%
Gross margin percentage		66.0	%		47.9	%	1,810 bps			62.7	%		61.8	%	90 bps
Operating income	$	1,102		$	99		1,013	%	$	3,279		$	1,692			94	%
Operating margin		33.9	%		4.2	%	2,970 bps			27.3	%		23.1	%	420 bps
Diluted earnings per share	$	1.82		$	0.16		1,038	%	$	5.25		$	3.46			52	%

Adjusted Results
Adjusted gross margin	$	2,403		$	1,660		45	%	$	8,842		$	5,186			70	%
Adjusted gross margin percentage		74.0	%		70.9	%	310 bps			73.6	%		70.9	%	270 bps
Adjusted operating income	$	1,659		$	1,009		64	%	$	5,939		$	3,104			91	%
Adjusted operating margin		51.1	%		43.1	%	800 bps			49.4	%		42.4	%	700 bps
Adjusted diluted earnings per share	$	2.73		$	1.73		58	%	$	9.57		$	6.46			48	%

							Three Months Ended					Trailing Twelve Months
Cash Generation							Oct 29, 2022					Oct 29, 2022
Net cash provided by operating activities							$			1,149		$				4,475
% of revenue										35	%					37	%
Capital expenditures							$			(305	)	$				(699	)
Free cash flow							$			845		$				3,776
% of revenue										26	%					31	%

							Three Months Ended					Trailing Twelve Months (2)
Cash Return							Oct 29, 2022					Oct 29, 2022
Dividend paid							$			(390	)	$				(1,545	)
Stock repurchases										(818	)					(3,077	)
Total cash returned							$			(1,209	)	$				(4,622	)

(1) The sum and/or computation of the individual amounts may not equal the total due to rounding.
(2) Includes $500 million of stock repurchases, which were prepaid in the fourth quarter of fiscal 2021 as part of our accelerated share repurchase program.

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