10-K – 2025-11-25 – adi-20251101.htm

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(1) The sum of the individual percentages may not equal the total due to rounding.
In all periods presented, the predominant regions comprising “Rest of North and South America” are Mexico and Canada; the predominant regions comprising “Europe” are Germany, the Netherlands, France and Israel; and the predominant regions comprising “Rest of Asia” are Taiwan, South Korea, Malaysia and Singapore.
Total revenue increased in fiscal 2025 as compared to fiscal 2024 in most regions due to broad-based demand increases as discussed above under the heading Revenue Trends by End Market.
Gross Margin
  Fiscal Year
  2025 2024 $ Change % Change
Gross margin $ 6,773,478  $ 5,381,343  $ 1,392,135  26  %
Gross margin % 61.5  % 57.1  %

Gross margin percentage in fiscal 2025 increased by 440 basis points compared to fiscal 2024, primarily due to higher utilization of our factories due to increased customer demand as well as a decrease in amortization expense related to acquired intangible assets.
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Research and Development (R&D)
  Fiscal Year
  2025 2024 $ Change % Change
R&D expenses $ 1,766,001  $ 1,487,863  $ 278,138  19  %
R&D expenses as a % of revenue 16  % 16  %

R&D expenses increased in fiscal 2025 as compared to fiscal 2024, primarily as a result of higher R&D employee related variable compensation expenses and higher salary and benefit expenses, partially offset by the impact of an additional week of operations in fiscal 2024 as compared to fiscal 2025.
R&D expenses as a percentage of revenue will fluctuate from year-to-year depending on the amount of revenue and the success of new product development efforts, which we view as critical to our future growth. We expect to continue the development of innovative technologies and processes for new products. We believe that a continued commitment to R&D is essential to maintain product leadership with our existing products as well as to provide innovative new product offerings.
Selling, Marketing, General and Administrative (SMG&A)
  Fiscal Year
  2025 2024 $ Change % Change
SMG&A expenses $ 1,255,339  $ 1,068,640  $ 186,699  17  %
SMG&A expenses as a % of revenue 11  % 11  %

SMG&A expenses increased in fiscal 2025 as compared to fiscal 2024, primarily as a result of higher SMG&A employee related variable compensation expenses and salary and benefit expenses, partially offset by an additional week of operations in fiscal 2024 as compared to fiscal 2025.
Amortization of Intangibles
  Fiscal Year
  2025 2024 $ Change % Change
Amortization expenses $ 749,662  $ 754,784  $ (5,122) (1) %
Amortization expenses as a % of revenue 7  % 8  %

Amortization expenses decreased in fiscal 2025 as compared to fiscal 2024, primarily as a result of a portion of our acquired intangible assets becoming fully amortized.
Special Charges, Net
  Fiscal Year
  2025 2024 $ Change % Change
Special charges, net $ 69,980  $ 37,258  $ 32,722  88  %
Special charges, net as a % of revenue 1  % —  %

Special charges, net increased in fiscal 2025 as compared to fiscal 2024, primarily due to increased charges related to our Global Repositioning Actions. See Note 5, Special Charges, Net , of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for more information.
Nonoperating Expense (Income)
  Fiscal Year
  2025 2024 $ Change % Change

Nonoperating expense (income)
$ 220,384  $ 255,458  $ (35,074) (14) %

The year-over-year decrease in nonoperating expense in fiscal 2025 as compared to fiscal 2024 was primarily the result of higher interest income from higher cash, cash equivalents and short-term investments balances during fiscal 2025.
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Provision for Income Taxes
  Fiscal Year
  2025 2024 $ Change % Change
Provision for income taxes $ 444,770  $ 142,067  $ 302,703  213  %
Effective income tax rate 16.4  % 8.0  %

Our effective tax rates for fiscal 2025 and fiscal 2024 were below the U.S. statutory rate of 21% due to lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. For fiscal 2025 and fiscal 2024 our pretax income was primarily generated in Ireland at a tax rate of 12.5%. Our effective tax rate for fiscal 2025 was impacted by a net deferred tax expense of $153.8 million related to the remeasurement of our Global Intangible Low-Taxed Income related deferred tax assets and liabilities attributable to the passage of the One Big Beautiful Bill Act.
See Note 10, Income Taxes , of the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K for further discussion.
Net Income
  Fiscal Year
  2025 2024 $ Change % Change
Net income $ 2,267,342  $ 1,635,273  $ 632,069  39  %
Net income, as a % of revenue 20.6  % 17.3  %
Diluted EPS $ 4.56  $ 3.28  $ 1.28  39  %

The increase in net income in fiscal 2025 as compared to fiscal 2024 was a result of a $899.7 million increase in operating income and a $35.1 million decrease in nonoperating expense, partially offset by a $302.7 million increase in provision for income taxes.

Liquidity and Capital Resources
At November 1, 2025, our principal source of liquidity was $3.7 billion of cash, cash equivalents and short-term investments, of which approximately $2.4 billion was held in the United States, with the balance held outside the United States in various foreign subsidiaries. We manage our worldwide cash requirements by, among other things, reviewing available funds held by our foreign subsidiaries and the cost effectiveness by which those funds can be accessed in the United States. We do not expect current regulatory restrictions or taxes on repatriation to have a material adverse effect on our overall liquidity, financial condition or results of operations. Our cash, cash equivalents and short-term investments consist of highly liquid investments, including money market funds and corporate and bank obligations. We maintain these balances with counterparties with high credit ratings and continually monitor the amount of credit exposure to any one issuer and diversify our investments in order to minimize our credit risk.
We believe that our existing sources of liquidity and cash expected to be generated from future operations, together with existing and anticipated available short- and long-term financing, will be sufficient to fund operations, capital expenditures, research and development efforts and dividend payments (if any) in the immediate future and for at least the next twelve months.
  Fiscal Year
  2025 2024
Net cash provided by operating activities $ 4,812,202  $ 3,852,529 
Net cash provided by operating activities as a % of revenue 44  % 41  %
Net cash used for investing activities
$ (1,321,521) $ (1,104,858)
Net cash used for financing activities $ (2,982,617) $ (1,714,390)

The following changes contributed to the net change in cash and cash equivalents from fiscal 2024 to fiscal 2025.
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Operating Activities
Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities. The increase in cash provided by operating activities during fiscal 2025 as compared to fiscal 2024 was primarily a result of higher net income adjusted for noncash items and changes in working capital.
Investing Activities
Investing cash flows generally consist of purchases of property, plant and equipment, available-for-sale investments and acquisitions of other businesses. The change in cash used for investing activities during fiscal 2025 as compared to fiscal 2024 was primarily the result of the net impact of purchases and maturities of available-for-sale investments, partially offset by a decrease in cash used for capital expenditures.
Financing Activities
Financing cash flows generally consist of payments of dividends to shareholders, repurchases of common stock, issuance and repayment of debt and proceeds from the sale of shares of common stock pursuant to employee equity incentive plans. The increase in cash used for financing activities during fiscal 2025 as compared to fiscal 2024 was primarily the result of increased common stock repurchases and dividend payments to shareholders, partially offset by the net proceeds from our debt obligations.
Working Capital
  Fiscal Year
  2025 2024 $ Change % Change
Accounts receivable, net $ 1,436,075  $ 1,336,331  $ 99,744  7  %
Days sales outstanding (1)
46  54 
Inventory $ 1,656,323  $ 1,447,687  $ 208,636  14  %
Days cost of sales in inventory (1)
133  139 

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(1) We use the average of the current year and prior year ending net accounts receivable and ending inventory balance in our calculation of days sales outstanding and days cost of sales in inventory, respectively.
The increase in accounts receivable for fiscal 2025 compared to fiscal 2024 was primarily the result of variations in the timing of collections and billings and increased revenue levels in the fourth quarter of fiscal 2025 as compared to the fourth quarter of fiscal 2024.
Inventory increased in fiscal 2025 as compared to fiscal 2024, primarily as a result of our efforts to balance manufacturing production, demand and inventory levels. Our inventory levels are impacted by our need to support forecasted sales demand and variations between those forecasts and actual demand.
Current liabilities increased to $3.2 billion at November 1, 2025 from $3.0 billion recorded at the end of fiscal 2024, primarily due to increases in accrued liabilities and income taxes payable, partially offset by a decrease in current debt.
Revolving Credit Facility
Our Fourth Amended and Restated Revolving Credit Agreement, dated as of April 11, 2025, with Bank of America N.A. as administrative agent and the other banks identified therein as lenders (the Revolving Credit Agreement) provides for a five year unsecured revolving credit facility in an aggregate principal amount not to exceed $3.0 billion (subject to certain terms and conditions).
We may borrow under the Revolving Credit Agreement in the future and use the proceeds for repayment of existing indebtedness, stock repurchases, acquisitions, capital expenditures, working capital and other lawful corporate purposes. The terms of the Revolving Credit Agreement impose restrictions on our ability to undertake certain transactions, to create certain liens on assets and to incur certain subsidiary indebtedness. In addition, the Revolving Credit Agreement contains an interest coverage covenant which requires the ratio of consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) to consolidated interest charges to be greater than 3.0 to 1.0. As of November 1, 2025, we were in compliance with these covenants. See Note 11, Revolving Credit Facility, of the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K for further information on our revolving credit facility.
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Debt
As of November 1, 2025, we had approximately $8.1 billion of carrying value outstanding on our senior notes. The difference in the carrying value of the debt and the principal is due to the unamortized discount and issuance fees and other adjustments on these instruments. The indentures governing certain of our debt instruments contain covenants that may limit our ability to: incur, create, assume or guarantee any debt or borrowed money secured by a lien upon a principal property; enter into sale and lease-back transactions with respect to a principal property; and consolidate with or merge into, or transfer or lease all or substantially all of our assets to, any other party. As of November 1, 2025, we were compliant with these covenants. See Note 12, Debt of the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K for further information on our outstanding debt.
Commercial Paper Program
Under our commercial paper program, we may issue short-term, unsecured commercial paper notes in amounts up to a maximum aggregate face amount of $3.0 billion outstanding at any time, with maturities of up to 397 days from the date of issuance. As of November 1, 2025, we had $446.6 million of outstanding borrowings under the commercial paper program recorded in the Consolidated Balance Sheet. We intend to use the net proceeds of the commercial paper program for general corporate purposes, including without limitation, repayment of indebtedness, stock repurchases, acquisitions, capital expenditures and working capital.
Stock Repurchase Program
As of November 1, 2025, our Board of Directors had authorized us to repurchase $26.7 billion of our common stock under our common stock repurchase program and $9.7 billion remained available for repurchases under the current authorized program. Repurchased shares are held as authorized but unissued shares of common stock. Unless terminated earlier by resolution of our Board of Directors, the repurchase program will expire when the full dollar amount of the authorization has been used to repurchase shares under the program. Future repurchases of common stock will be dependent upon our financial position, results of operations, outlook, liquidity and other factors we deem relevant.
Capital Expenditures
Net additions to property, plant and equipment were $533.6 million in fiscal 2025. We expect capital expenditures for fiscal 2026 to be between approximately 4% and 6% of fiscal 2026 revenue. These capital expenditures will be funded with a combination of cash on hand and cash expected to be generated from future operations, together with existing and anticipated available short- and long-term financing.
Dividends
On November 24, 2025, our Board of Directors declared a cash dividend of $0.99 per outstanding share of common stock. The dividend will be paid on December 22, 2025 to all shareholders of record at the close of business on December 8, 2025 and is expected to total approximately $484.8 million. We currently expect quarterly dividends to continue in future periods, although they remain subject to determination and declaration by our Board of Directors. The payment of future dividends, if any, will be based on several factors, including our financial performance, outlook and liquidity.
Contractual Obligations
The table below summarizes our material contractual obligations in specified periods as of November 1, 2025:
    Payment due by period
    Less than     More than
(thousands) Total 1 Year 1-3 Years 3-5 Years 5 Years

Debt obligations (1)
$ 8,663,716  $ 446,639  $ 2,940,212  $ 650,000  $ 4,626,865 
Interest payments associated with debt obligations 3,192,312  290,787  517,777  389,089  1,994,659 
Investment-related commitments (2)
186,892  37,378  74,757  74,757  — 
Transition tax (3)
167,856  167,856  —  —  — 
Operating leases ( 4)
394,961  85,606  142,960  109,501  56,894 
Inventory-related purchase commitments (5) 269,737  122,643  103,761  40,000  3,333 

Total $ 12,875,474  $ 1,150,909  $ 3,779,467  $ 1,263,347  $ 6,681,751 

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(1) Debt obligations are assumed to be held to maturity.
(2) Commitments related to certain investments in venture funds directed to our strategic areas of targeted growth in digital biology, life sciences and sustainability, among others.
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(3) Tax obligation relates to the one-time tax on deemed repatriated earnings under the Tax Cuts and Jobs Act.
(4) Certain of our operating lease obligations include escalation clauses. These escalating payment requirements are reflected in the table.
(5) We have supplier commitments for the purchase of materials and supplies in advance or with minimum purchase quantities.
As of November 1, 2025, our total liabilities associated with uncertain tax positions was $199.7 million, which are included in non-current income taxes payable in our Consolidated Balance Sheets contained in Part II, Item 8 of this Annual Report on Form 10-K. Due to the complexity associated with our tax uncertainties, we cannot make a reasonably reliable estimate of the period in which we expect to settle the non-current liabilities associated with these uncertain tax positions. Therefore, we have not included these uncertain tax positions in the above contractual obligations table.
New Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) and are adopted by us as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards will not have a material impact on our future financial condition and results of operations. See Note 2s, New Accounting Pronouncements, of the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K for a description of recently issued and adopted accounting pronouncements, including the dates of adoption and impact on our financial condition and results of operations.
Critical Accounting Policies and Estimates
Management’s discussion and analysis of the financial condition and results of operations is based upon the Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience, knowledge of current conditions and beliefs of what could occur in the future based on available information. We consider the following accounting policies to be both those most important to the portrayal of our financial condition and those that require the most subjective judgment. If actual results differ significantly from management’s estimates and projections, there could be a material effect on our financial statements. We also have other policies that we consider key accounting policies; however, the application of these policies does not require us to make significant estimates or judgments that are difficult or subjective.
Revenue Recognition
Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration that we expect to receive in exchange for those products or services. We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of our shipping terms permit us to recognize revenue at point of shipment or delivery. Certain shipping terms require the goods to be through customs or be received by the customer before title passes. In those instances, we defer the revenue recognized until title and control of the promised goods have passed to the customer. Shipping costs are charged to selling, marketing, general and administrative expense as incurred. Sales taxes are excluded from revenue.
Revenue from contracts with the United States government, government prime contractors and certain commercial customers is recorded over time using either units delivered or costs incurred as the measurement basis for progress toward completion. These measures are used to measure results directly and is generally the best measure of progress toward completion in circumstances in which a reliable measure of output can be established. Estimated revenue in excess of amounts billed is reported as unbilled receivables. Contract accounting requires judgment in estimating costs and assumptions related to technical issues and delivery schedule. Contract costs include material, subcontract costs, labor and an allocation of indirect costs. The estimation of costs at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Changes in contract performance, estimated gross margin, including the impact of final contract settlements, and estimated losses are recognized in the period in which the changes or losses are determined.
Performance Obligations : Substantially all of our contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. Such sales represent a single performance obligation because the sale is one type of good or includes multiple goods that are neither capable of being distinct nor separable from the other promises in the contract. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates and with an original expected duration of one year or less. We generally warrant that our products will meet their
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published specifications, and that we will repair or replace defective products, for one year from the date title passes from us to the customer. Specific accruals are recorded for known product warranty issues.
Transaction Price : The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to direct customers and sales to distributors in which both the sale to the distributor and the sale to the end customer occur within the same reporting period. Variable consideration includes sales in which the amount of consideration that we will receive is unknown as of the end of a reporting period. The vast majority of such consideration are credits issued to the distributor due to price protection, but also include sales made to distributors under agreements that allow certain rights of return, referred to as stock rotation. Price protection represents price discounts granted to certain distributors to allow the distributor to earn an appropriate margin on sales negotiated with certain customers and in the event of a price decrease subsequent to the date the product was shipped and billed to the distributor. Stock rotation allows distributors limited levels of returns in order to reduce the amounts of slow-moving, discontinued or obsolete product from their inventory. A liability for distributor credits covering variable consideration is made based on management’s estimate of historical experience rates as well as considering economic conditions and contractual terms. To date, actual distributor claims activity has been materially consistent with the provisions we have made based on our historical estimates.
Contract Balances : Accounts receivable represents our unconditional right to receive consideration from our customers. Payments are typically due within 30 to 45 days of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the Consolidated Balance Sheets in any of the periods presented.
Inventory Valuation
We value inventories at the lower of cost (first-in, first-out method) or net realizable value. Because of the cyclical nature of the semiconductor industry, changes in inventory levels, obsolescence of technology, and product life cycles, we write down inventories to net realizable value. We employ a variety of methodologies to determine the net realizable value of inventory. While a portion of the calculation is determined via reference to the age of inventory and lower of cost or net realizable value calculations, an element of the calculation is subject to significant judgments made by us about future demand for our inventory. If actual demand for our products is less than our estimates, additional adjustments to existing inventories may need to be recorded in future periods. To date, our actual results have not been materially different than our estimates.
Goodwill
We evaluate goodwill for impairment annually, as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable, utilizing either the qualitative or quantitative method. We have determined that the business operates as a single operating segment and has a single reporting unit for the purpose of goodwill impairment testing. We test goodwill on an annual basis on the first day of the fourth quarter (August 3, 2025 in fiscal 2025) or more frequently if indicators of impairment exist or we reorganize our business.
We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its net book value. When using the qualitative method, we consider several factors, including the following:
– the amount by which the fair value of our reporting unit exceeded its carrying value as of the date of the most recent quantitative impairment analysis, which indicated there would need to be substantial negative developments in the markets in which our reporting unit operates in order for there to be potential impairment;
– the carrying value of our reporting unit as of the assessment date compared to the previously calculated fair value as of the date of the most recent quantitative impairment analysis;
– the current forecasts as compared to the forecasts included in the most recent quantitative impairment analysis;
– public information from competitors and other industry information to determine if there were any significant adverse trends in our competitors’ businesses;
– changes in the value of major U.S. stock indices that could suggest declines in overall market stability that could impact the valuation of our reporting unit;
– changes in our market capitalization and overall enterprise valuation to determine if there were any significant decreases that could be an indication that the valuation of our reporting unit had significantly decreased; and
– whether there had been any significant increases to the weighted-average cost of capital rates used, which could materially lower our prior valuation conclusions under a discounted cash flow approach.
If we elect not to use this option, or we determine that it is more likely than not that the fair value of our reporting unit is less than its net book value, then we perform the quantitative goodwill impairment test. The quantitative goodwill impairment test requires us to compare the fair value of our reporting unit with its carrying amount. If fair value is determined to be less
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than carrying value, an impairment loss is recognized for the amount of the carrying value that exceeds the amount of the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Additionally, we consider income tax effects from any tax deductible goodwill on the carrying amount of our reporting unit when measuring the goodwill impairment loss, if applicable. We determine the fair value of our reporting unit using a weighting of the income and market approaches. Under the income approach, we use a discounted cash flow methodology which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, we use the guideline public company method. Under this method we utilize information from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain the respective fair value. In order to assess the reasonableness of the calculated reporting unit fair value, we reconcile the fair value of our reporting unit determined, as described above, to our total company market capitalization, allowing for a reasonable control premium.
During fiscal 2025, we used a combination of the quantitative and qualitative methods of assessing goodwill. During fiscal 2024, we used the qualitative method of assessing goodwill. In all periods presented, we concluded the reporting unit fair values exceeded their carrying amounts as of the assessment dates and no risk of impairment existed.
Accounting for Income Taxes
We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of income tax credits, benefits, and deductions, and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of the recognition of certain expenses for tax and financial statement purposes. We assess the likelihood of the realization of deferred tax assets and record a corresponding valuation allowance as necessary if we determine those deferred tax assets may not be realized due to the uncertainty of the timing and amount to be realized of certain state and international tax credit carryovers. In reaching our conclusion, we evaluate certain relevant criteria including the existence of deferred tax liabilities that can be used to realize deferred tax assets, the taxable income in prior carryback years in the impacted state and international jurisdictions that can be used to absorb net operating losses and taxable income in future years. Our judgments regarding future profitability may change due to future market conditions, changes in U.S. or international tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets, which may result in an increase or decrease to our income tax provision in future periods.
We account for uncertain tax positions by first determining if it is “more likely than not” that a tax position will be sustained by the appropriate taxing authorities prior to recording any benefit in the financial statements. An uncertain income tax position is not recognized if it has less than a 50% likelihood of being sustained. For those tax positions where it is more likely than not that a tax position will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. We classify interest and penalties related to uncertain tax positions within the provision for income taxes line of the Consolidated Statements of Income. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in known facts or circumstances, changes in tax law, effectively settled issues under audit, and new guidance on legislative interpretations. A change in these factors could result in the recognition of an increase or decrease to our income tax provision, which could materially impact our consolidated financial position and results of operations.
In the ordinary course of global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of cost reimbursement and royalty arrangements among related entities. Although we believe our estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in our historical income tax provisions and income tax liabilities. In the event our assumptions are incorrect, the differences could have a material impact on our income tax provision and operating results in the period in which such determination is made. In addition to the factors described above, our current and expected effective tax rate is based on then-current tax law. Significant changes during the year in enacted tax law could affect these estimates.
See Note 10, Income Taxes , of the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K for further discussion.
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ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Exposure
Our interest income and expense are sensitive to changes in the general level of interest rates. In this regard, changes in interest rates affect the interest earned or paid on our marketable securities and debt, as well as the fair value of our investments and debt.
Based on our floating rate debt outstanding as of November 1, 2025 and November 2, 2024, inclusive of our commercial paper notes and interest rate swap outstanding, as applicable, our annual interest expense would change by approximately $14.5 million and $15.5 million, respectively, for each 100-basis point increase in interest rates.
Based on our cash and marketable securities outstanding as of November 1, 2025 and November 2, 2024, our annual interest income would change by approximately $36.5 million and $19.9 million, respectively, for each 100-basis point increase in interest rates.
To provide a meaningful assessment of the interest rate risk associated with our investment portfolio, we performed a sensitivity analysis to determine the impact a change in interest rates would have on the value of our investment portfolio assuming an immediate 100-basis point parallel shift in the yield curve. Based on investment positions as of November 1, 2025 and November 2, 2024, a hypothetical 100-basis point increase in interest rates across all maturities would not materially impact the fair market value of the portfolio in either period. Any losses would only be realized if we sold the investments prior to maturity.
As of November 1, 2025 we had $1.0 billion notional of fixed for floating interest rate swaps outstanding, with the swap payable having a fair value of $12.6 million. A hypothetical 100-basis point increase in interest rates would increase the swap payable by approximately $45.9 million with a corresponding adjustment to the carrying value of the related debt.
As of November 1, 2025, we had $8.2 billion in principal amount of senior unsecured notes outstanding, with a fair value of $7.5 billion. We also had $446.6 million of commercial paper notes outstanding. As commercial paper notes issuances are at then-current rates and with very short maturities, the carrying value will approximate the fair value. The fair value of our notes is subject to interest rate risk, market risk and other factors. Generally, the fair value of our notes will increase as interest rates fall and decrease as interest rates rise. The fair values of our notes as of November 1, 2025 and November 2, 2024, assuming a hypothetical 100 basis point increase in market interest rates, are as follows:

November 1, 2025 November 2, 2024
(thousands) Principal Amount Outstanding Fair Value Fair Value given an increase in interest rates of 100 basis points Principal Amount Outstanding Fair Value Fair Value given an increase in interest rates of 100 basis points

Commercial paper notes
$ 446,639  $ 446,624  $ 446,423  $ 547,738  $ 547,718  $ 547,532 
2025 Notes, due April 2025 —  —  —  400,000  397,027  395,418 

2026 Notes, due December 2026 900,000  895,623  886,176  900,000  882,795  865,439 

2027 Notes, due June 2027 440,212  436,916  430,163  440,212  421,077  410,868 
2028 Notes, due June 2028 850,000  856,345  835,576  —  —  — 
2028 Notes, due October 2028 750,000  704,186  684,787  750,000  673,316  648,856 
2030 Notes, due June 2030 650,000  659,834  633,147  —  —  — 
2031 Notes, due October 2031 1,000,000  884,390  837,631  1,000,000  843,766  792,665 
2032 Notes, due October 2032 300,000  301,546  284,226  300,000  287,172  268,903 
2034 Notes, due April 2034 550,000  571,370  533,837  550,000  553,375  514,043 
2036 Notes, due December 2036 144,278  138,756  127,435  144,278  136,718  124,895 
2041 Notes, due October 2041 750,000  555,925  493,618  750,000  534,435  472,539 
2045 Notes, due December 2045 332,587  327,992  291,047  332,587  322,942  285,905 
2051 Notes, due October 2051 1,000,000  662,609  568,102  1,000,000  655,668  560,843 
2054 Notes, due April 2054 550,000  541,087  470,454  550,000  541,912  470,255 

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Foreign Currency Exposure
As more fully described in Note 2i, Derivative and Hedging Agreements , of the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K, we regularly hedge our non-U.S. dollar-based exposures by entering into forward foreign currency exchange contracts. The terms of these contracts are for periods matching the duration of the underlying exposure and generally range from one to twelve months. Currently, our largest foreign currency exposure is the Euro, primarily because our European operations have the highest proportion of our local currency denominated expenses. Relative to the net unhedged foreign currency exposures existing at November 1, 2025 and November 2, 2024, an immediate 10% unfavorable movement in foreign currency exchange rates would result in approximately $89.6 million of losses and $32.2 million of losses, respectively, in changes in earnings or cash flows over the course of the year.
The market risk associated with our derivative instruments results from currency exchange rates that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. The counterparties to the agreements relating to our foreign exchange instruments consist of a number of major international financial institutions with high credit ratings. Based on the credit ratings of our counterparties as of November 1, 2025, we do not believe that there is significant risk of nonperformance by them. While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of our exposure to credit risk. The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed our obligations to the counterparties.
The following table illustrates the effect that an immediate 10% unfavorable or favorable movement in foreign currency exchange rates, relative to the U.S. dollar, would have on the fair value of our forward exchange contracts as of November 1, 2025 and November 2, 2024:
November 1, 2025 November 2, 2024
Fair value of forward exchange contracts $ (1,267) $ (8,961)
Fair value of forward exchange contracts after a 10% unfavorable movement in foreign currency exchange rates asset $ 47,703  $ 31,564 
Fair value of forward exchange contracts after a 10% favorable movement in foreign currency exchange rates liability $ (45,730) $ (45,922)

The calculation assumes that each exchange rate would change in the same direction relative to the U.S. dollar. In addition to the direct effects of changes in exchange rates, such changes typically affect the volume of sales or the foreign currency sales price as competitors’ products become more or less attractive. Our sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency selling prices.
41

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Analog Devices, Inc.

Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Analog Devices, Inc. (the Company) as of November 1, 2025 and November 2, 2024, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended November 1, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 1, 2025 and November 2, 2024, and the results of its operations and its cash flows for each of the three years in the period ended November 1, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of November 1, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated November 25, 2025 expressed an unqualified opinion thereon.

Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

Revenue Recognition – Measuring Price Protection Credits
Description of the Matter As described in Note 2n to the consolidated financial statements, the Company’s sales contracts provide certain distributors with credits for price protection and rights of return, which results in variable consideration. During 2025, sales to distributors were $6.1 billion net of expected price protection credits and rights of return for which the liability balance as of November 1, 2025 was $785 million, of which the vast majority relates to the price protection credits.

Auditing the Company’s measurement for price protection credits under distributor contracts involved especially challenging judgment because the calculation involves subjective management assumptions about estimates of expected price protection credits. For example, estimated price protection credits included in the transaction price reflects management’s evaluation of contractual terms, historical experience and assumptions about future economic conditions. Changes in those assumptions can have a material effect on the amount recognized for price protection credits.

42

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to calculate the price protection credits. For example, we tested controls over the appropriateness of assumptions management used as well as controls over the completeness and accuracy of the data underlying estimates of expected price protection credits.

Our audit procedures included, among others, inspecting contractual terms in distributor agreements and testing the underlying data used in management’s calculation for completeness and accuracy as well as evaluating the significant assumptions used in the estimation of the price protection credits. We evaluated the Company’s methods and assumptions used in the estimates, which included comparing the assumptions to historical trends. We inspected and tested the results of the Company’s retrospective review analysis of actual price protection credits claimed by distributors, evaluated the estimates made based on historical experience and performed sensitivity analyses of the Company’s significant assumptions to assess the impact on the price protection credits. We also evaluated whether the Company appropriately considered new information that could significantly change the estimated future price protection credits.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1967.

Boston, Massachusetts
November 25, 2025
43

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ANALOG DEVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Years ended November 1, 2025, November 2, 2024 and October 28, 2023

(thousands, except per share amounts) 2025 2024
2023

Revenue      
Revenue $ 11,019,707   $ 9,427,157   $ 12,305,539  
Costs and Expenses      
Cost of sales 4,246,229   4,045,814   4,428,321  
Gross margin 6,773,478   5,381,343   7,877,218  
Operating expenses:      
Research and development 1,766,001   1,487,863   1,660,194  
Selling, marketing, general and administrative 1,255,339   1,068,640   1,273,584  
Amortization of intangibles 749,662   754,784   959,618  
Special charges, net 69,980   37,258   160,710  

 Total operating expenses
3,840,982   3,348,545   4,054,106  
Operating income: 2,932,496   2,032,798   3,823,112  
Nonoperating expense (income):      
Interest expense 317,716   322,227   264,641  

Interest income ( 105,266 ) ( 78,817 ) ( 41,287 )
Other, net 7,934   12,048   ( 8,245 )
 Total nonoperating expense (income)
220,384   255,458   215,109  
Earnings      
Income before income taxes 2,712,112   1,777,340   3,608,003  

Provision for income taxes
444,770   142,067   293,424  
Net income $ 2,267,342   $ 1,635,273   $ 3,314,579  

Shares used to compute earnings per common share — basic 494,381   496,166   502,232  
Shares used to compute earnings per common share — diluted 496,709   498,697   505,959  

Basic earnings per common share $ 4.59   $ 3.30   $ 6.60  
Diluted earnings per common share $ 4.56   $ 3.28   $ 6.55  

See accompanying Notes.
44

ANALOG DEVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years ended November 1, 2025, November 2, 2024 and October 28, 2023

(thousands) 2025 2024 2023

Net income $ 2,267,342   $ 1,635,273   $ 3,314,579  
Foreign currency translation adjustment ( 189 ) 1,033   ( 408 )

Change in unrecognized gains/losses on derivative instruments designated as cash flow hedges:      
Changes in fair value of derivatives (net of tax of $ 6,747 in 2025, $ 5,948 in 2024 and $ 486 in 2023)
( 5,584 ) 4,533   7,948  
Adjustment for realized loss reclassified into earnings (net of tax of $ 3,228 in 2025, $ 2,140 in 2024 and $ 3,311 in 2023)
21,009   12,308   9,622  
Total change in derivative instruments designated as cash flow hedges, net of tax 15,425   16,841   17,570  
Changes in accumulated other comprehensive loss — pension plans:      

Change in actuarial (loss)/gain (net of tax of $ 1,828 in 2025, $ 1,198 in 2024 and $ 312 in 2023)
15,438   ( 14,828 ) ( 7,312 )

Other comprehensive income 30,674   3,046   9,850  
Comprehensive income $ 2,298,016   $ 1,638,319   $ 3,324,429  

See accompanying Notes.
45

ANALOG DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
November 1, 2025 and November 2, 2024

(thousands, except per share amounts) 2025 2024
ASSETS  
Current Assets    
Cash and cash equivalents $ 2,499,406   $ 1,991,342  
Short-term investments 1,152,915   371,822  
Accounts receivable less allowances of $ 5,441 ($ 7,160 in 2024)
1,436,075   1,336,331  
Inventories 1,656,323   1,447,687  

Prepaid expenses and other current assets 363,342   337,472  
Total current assets 7,108,061   5,484,654  
Other Assets  

Net property, plant and equipment 3,315,696   3,415,550  

Goodwill 26,945,180   26,909,775  
Intangible assets, net 8,013,815   9,585,464  
Deferred tax assets 1,867,102   2,083,752  
Other assets 742,858   749,082  
Total non-current assets
40,884,651   42,743,623  
 TOTAL ASSETS
$ 47,992,712   $ 48,228,277  
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current Liabilities    
Accounts payable $ 543,760   $ 487,457  

Income taxes payable 610,370   447,379  
Debt, current
—   399,636  
Commercial paper notes
446,639   547,738  
Accrued liabilities 1,645,032   1,106,070  
Total current liabilities 3,245,801   2,988,280  
Non-current Liabilities  
Long-term debt 8,145,066   6,634,313  
Deferred income taxes 2,163,281   2,624,392  

Income taxes payable 100,963   260,486  
Other non-current liabilities 521,846   544,489  
Total non-current liabilities 10,931,156   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, 489,654,097 shares outstanding ( 496,296,854 on November 2, 2024)
81,611   82,718  
Capital in excess of par value 23,349,185   25,082,243  
Retained earnings 10,539,541   10,196,612  
Accumulated other comprehensive loss ( 154,582 ) ( 185,256 )
Total shareholders’ equity 33,815,755   35,176,317  
 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$ 47,992,712   $ 48,228,277  

See accompanying Notes.
46

ANALOG DEVICES, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Years ended November 1, 2025, November 2, 2024 and October 28, 2023

Capital in Accumulated
Other
  Common Stock Excess of Retained Comprehensive
(thousands) Shares Amount Par Value Earnings (Loss) Income
BALANCE, OCTOBER 29, 2022
509,296   $ 84,880   $ 27,857,270   $ 8,721,325   $ ( 198,152 )

Net Income — 2023
      3,314,579    
Dividends declared and paid - $ 3.34 per share
      ( 1,679,106 )  
Issuance of stock under stock plans
3,440   574   118,034      

Stock-based compensation expense     299,823      

Other comprehensive income         9,850  
Common stock repurchased ( 16,474 ) ( 2,742 ) ( 2,961,213 )    
BALANCE, OCTOBER 28, 2023
496,262   82,712   25,313,914   10,356,798   ( 188,302 )

Net Income — 2024
      1,635,273    
Dividends declared and paid - $ 3.62 per share
      ( 1,795,459 )  
Issuance of stock under stock plans
3,216   536   120,679      

Stock-based compensation expense     262,710      

Other comprehensive income         3,046  
Common stock repurchased ( 3,181 ) ( 530 ) ( 615,060 )    
BALANCE, NOVEMBER 2, 2024
496,297   82,718   25,082,243   10,196,612   ( 185,256 )

Net Income — 2025
      2,267,342    
Dividends declared and paid - $ 3.89 per share
      ( 1,924,413 )  
Issuance of stock under stock plans
2,805   468   108,445      
Stock-based compensation expense     321,560      
Other comprehensive income
        30,674  
Common stock repurchased ( 9,448 ) ( 1,575 ) ( 2,163,063 )    
BALANCE, NOVEMBER 1, 2025
489,654   $ 81,611   $ 23,349,185   $ 10,539,541   $ ( 154,582 )

See accompanying Notes.
47

ANALOG DEVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended November 1, 2025, November 2, 2024 and October 28, 2023

(thousands) 2025 2024 2023

Cash flows from operating activities:      
Net income $ 2,267,342   $ 1,635,273   $ 3,314,579  
Adjustments to reconcile net income to net cash provided by operations:      
Depreciation 406,801   362,771   334,704  
Amortization of intangibles 1,592,044   1,741,545   1,958,399  

Stock-based compensation expense 321,560   262,710   299,823  

Deferred income taxes ( 246,645 ) ( 367,563 ) ( 452,946 )
Other ( 9,909 ) 23,050   8,665  
Change in operating assets and liabilities:      
Accounts receivable ( 90,960 ) 133,402   330,728  
Inventories ( 208,636 ) 191,170   ( 242,299 )
Prepaid expenses and other current assets 9,107   ( 53,004 ) 4,543  

Accounts payable and accrued liabilities 657,305   ( 133,758 ) ( 499,316 )

Income taxes payable
94,303   91,648   ( 263,716 )
Other assets 6,664   ( 34,521 ) ( 25,819 )
Other liabilities 13,226   ( 194 ) 50,289  
Total adjustments 2,544,860   2,217,256   1,503,055  
Net cash provided by operating activities 4,812,202   3,852,529   4,817,634  

Cash flows from investing activities:      
Purchases of short-term available-for-sale investments ( 1,150,240 ) ( 438,901 ) —  

Maturities of short-term available-for-sale investments 372,778   69,279   —  
Additions to property, plant and equipment, net
( 533,552 ) ( 730,463 ) ( 1,261,463 )

Proceeds from sale of property, plant and equipment, net 58,892   —   —  
Payments for acquisitions, net of cash acquired ( 45,652 ) —   —  
Other ( 23,747 ) ( 4,773 ) ( 4,922 )
Net cash used for investing activities ( 1,321,521 ) ( 1,104,858 ) ( 1,266,385 )

Cash flows from financing activities:      
Proceeds from debt 1,490,785   1,087,856   —  
Early termination of debt —   —   ( 65,688 )
Debt repayments ( 399,998 ) ( 499,966 ) —  

Proceeds from commercial paper notes 9,462,691   10,184,439   5,287,124  
Payments of commercial paper notes ( 9,563,790 ) ( 10,183,925 ) ( 4,739,900 )

Dividend payments to shareholders ( 1,924,413 ) ( 1,795,459 ) ( 1,679,106 )
Repurchase of common stock ( 2,164,638 ) ( 615,590 ) ( 2,963,955 )
Proceeds from employee stock plans 108,913   121,215   118,608  

Other 7,833   ( 12,960 ) ( 20,843 )

Net cash used for financing activities ( 2,982,617 ) ( 1,714,390 ) ( 4,063,760 )

Net increase (decrease) in cash and cash equivalents 508,064   1,033,281   ( 512,511 )
Cash and cash equivalents at beginning of year 1,991,342   958,061   1,470,572  
Cash and cash equivalents at end of year $ 2,499,406   $ 1,991,342   $ 958,061  

See accompanying Notes.
48

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years ended November 1, 2025, November 2, 2024 and October 28, 2023
(all tabular amounts in thousands except per share amounts)

1. Description of Business
Analog Devices, Inc. (Analog Devices or the Company) is a global semiconductor leader dedicated to solving its customers’ most complex engineering challenges. Since its inception in 1965, the Company has played a critical role at the intersection of the physical and digital worlds by providing the building blocks to sense, measure, interpret, connect and power. The Company designs, manufactures, tests and markets a broad portfolio of solutions, including integrated circuits (ICs), software and subsystems that leverage high-performance analog, mixed-signal and digital signal processing technologies. The Company’s comprehensive product portfolio, deep domain expertise and advanced manufacturing capabilities extend across high-performance precision and high-speed mixed-signal, power management and processing technologies. The Intelligent Edge is characterized by ubiquitous sensing, hyper-scale and edge computing, artificial intelligence (AI) and pervasive connectivity. These technological trends drive new generations of applications that expand the demand for Analog Devices’ high-performance analog, mixed-signal, power and radio frequency ICs. The Company’s focus is largely on the business-to-business end markets of Industrial, Automotive and Communications and related applications, as well as Consumer applications, with the goal of driving sustainable and profitable growth over the long term.

2. Summary of Significant Accounting Policies
a. Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and all of its subsidiaries. Upon consolidation, all intercompany accounts and transactions are eliminated. Certain amounts reported in previous years have been reclassified to conform to the presentation for the fiscal year ended November 1, 2025 (fiscal 2025). Such reclassified amounts are immaterial.
The Company’s fiscal year is the 52 -week or 53 -week period ending on the Saturday closest to the last day in October. Fiscal 2025 was a 52 -week fiscal period, while the fiscal year ended November 2, 2024 (fiscal 2024) was a 53 -week fiscal period and the fiscal year ended October 28, 2023 (fiscal 2023) was a 52 -week fiscal period. The additional week in fiscal 2024 was included in the first quarter ended February 3, 2024. Therefore, fiscal 2025 and fiscal 2023 include one less week of operations as compared to fiscal 2024.
b. Cash, Cash Equivalents and Short-term Investments
Cash and cash equivalents are highly liquid investments with insignificant interest rate risk and maturities of ninety days or less at the time of acquisition. Short-term investments have original maturities of greater than ninety days at the time of acquisition. Cash, cash equivalents and short-term investments consist primarily of government and institutional money market funds, corporate obligations such as commercial paper and floating rate notes, bonds, demand deposit accounts, money market deposit accounts and bank time deposits.
The Company classifies its investments in readily marketable debt and equity securities as “held-to-maturity,” “available-for-sale” or “trading” at the time of purchase. The Company’s readily marketable cash equivalents and short-term investments are classified as available-for-sale. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of related tax, reported in accumulated other comprehensive (loss) income (AOCI). Adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease in AOCI, unless the adjustment is considered an other-than-temporary impairment, in which case the adjustment is recorded as a charge in the Consolidated Statements of Income.
The Company reviews available-for-sale securities and evaluates impairment whenever the fair value of the security is less than its amortized cost. If the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the Company will write down the security to its fair value at the reporting date, recognizing the difference as a charge in the Consolidated Statements of Income. If the impairment is partially or wholly due to a credit loss, the Company will recognize the portion of the fair value adjustment due to credit loss in the Consolidated Statements of Income.
Realized gains or losses on investments are determined based on the specific identification basis and are recognized in nonoperating (income) expense. There were no material net realized gains or losses from the sales of available-for-sale investments during any of the fiscal periods presented.
49

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The components of the Company’s cash and cash equivalents and short-term investments as of November 1, 2025 and November 2, 2024 were as follows:
2025 2024
Cash and Cash Equivalents:
   
Cash and cash equivalents
$ 1,360,969   $ 1,398,782  
Available-for-sale securities 1,138,437   592,560  

Total cash and cash equivalents $ 2,499,406   $ 1,991,342  
Short-term investments:    
Available-for-sale securities
1,152,915   371,822  

Total short-term investments $ 1,152,915   $ 371,822  

See Note 2j, Fair Value , of the Notes to Consolidated Financial Statements for additional information on the Company’s cash equivalents and short-term investments.
c. Supplemental Cash Flow Statement Information

2025 2024 2023
Cash paid during the fiscal year for:      
Income taxes $ 568,137   $ 414,838   $ 987,225  
Interest $ 255,637   $ 268,192   $ 206,415  

d. Inventories
Inventories are valued at the lower of cost (first-in, first-out method) or net realizable value. The valuation of inventory requires the Company to estimate obsolete or excess inventory as well as inventory that is not of saleable quality. The Company employs a variety of methodologies to determine the net realizable value of its inventory. While a portion of the calculation to record inventory at its net realizable value is based on the age of the inventory and lower of cost or net realizable value calculations, a key factor in estimating obsolete or excess inventory requires the Company to estimate the future demand for its products. If actual demand is less than the Company’s estimates, impairment charges, which are recorded to cost of sales, may need to be recorded in future periods. Inventory in excess of saleable amounts is not valued, and the remaining inventory is valued at the lower of cost or net realizable value.
Inventories at November 1, 2025 and November 2, 2024 were as follows:
2025 2024
Raw materials $ 70,183   $ 93,608  
Work in process 1,218,625   1,047,022  
Finished goods 367,515   307,057  
Total inventories $ 1,656,323   $ 1,447,687  

50

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

e. Property, Plant and Equipment
The following table presents details of the Company’s property, plant and equipment (PP&E), net of accumulated depreciation:

2025 2024 (1)
Land and buildings $ 2,118,530   $ 2,077,384  
Machinery and equipment 4,592,126   4,441,293  
Office equipment 499,227   477,884  
Leasehold improvements 195,707   191,427  
7,405,590   7,187,988  
Less accumulated depreciation and amortization 4,089,894   3,772,438  
Net property, plant and equipment $ 3,315,696   $ 3,415,550  
_______________________________________
(1) Certain amounts previously reported between land and buildings and machinery and equipment have been reclassified to conform to the current year presentation.
PP&E is recorded at cost, less allowances for depreciation and amortization. The straight-line method of depreciation is used for all classes of assets for financial statement purposes while both straight-line and accelerated methods are used for income tax purposes. Leasehold improvements are depreciated over the lesser of the term of the lease or the useful life of the asset. Repairs and maintenance charges are expensed as incurred. Depreciation is based on the following ranges of estimated useful lives:
Buildings Up to 30  years

Machinery & equipment 4 - 10  years

Office equipment 2 - 10  years

Leasehold improvements 5 - 20 years

The Company reviews PP&E for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of these assets is determined by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate over their remaining economic lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. If such assets are not impaired, but their useful lives have decreased, the remaining net book value is depreciated over the revised useful life.
PP&E is identified as held for sale when it meets the held for sale criteria of Accounting Standards Codification Topic 360, Property, Plant, and Equipment (ASC 360). Depreciation is not recorded for assets that are classified as held for sale. When an asset meets the held for sale criteria, the lower of its carrying value or fair value less costs to sell is reclassified from the relevant PP&E line items and into current assets on the balance sheet, where it remains until it is either sold or it no longer meets the held for sale criteria. If the assets held for sale were carried at fair value, it would be considered a Level 3 fair value measurement, and determined based on the use of appraisals and input from market participants.
During the fourth quarter of fiscal 2025, the Company determined its facility located in Penang, Malaysia met the held for sale criteria specified in ASC 360. No write-downs to fair value were required upon this determination as the fair value of the asset group, less costs to sell, was greater than the carrying value. As of November 1, 2025, prepaid expenses and other current assets includes the following assets held for sale:

Land and buildings $ 60,890  
Machinery and equipment 25,756  
Office equipment 6,519  
Less accumulated depreciation and amortization ( 39,005 )
Net property, plant and equipment reclassified to Prepaid expenses and other current assets $ 54,160  

51

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

f. Goodwill and Intangible Assets
Goodwill
The Company evaluates goodwill for impairment annually, as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable, utilizing either the qualitative or quantitative method. The Company has determined that its business operates as a single operating segment and has a single reporting unit for the purpose of goodwill impairment testing. The Company tests goodwill on an annual basis on the first day of the fourth quarter (August 3, 2025 in fiscal 2025) or more frequently if indicators of impairment exist or the Company reorganizes its business.
The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its net book value. When using the qualitative method, the Company considers several factors, including the following:
– the amount by which the fair value of a reporting unit exceeded its carrying value as of the date of the most recent quantitative impairment analysis, which indicated there would need to be substantial negative developments in the markets in which the reporting unit operates in order for there to be potential impairment;
– the carrying value of the reporting unit as of the assessment date compared to the previously calculated fair value as of the date of the most recent quantitative impairment analysis;
– the Company’s current forecasts as compared to the forecasts included in the most recent quantitative impairment analysis;
– public information from competitors and other industry information to determine if there were any significant adverse trends in the Company’s competitors’ businesses;
– changes in the value of major U.S. stock indices that could suggest declines in overall market stability that could impact the valuation of the Company’s reporting unit;
– changes in the Company’s market capitalization and overall enterprise valuation to determine if there were any significant decreases that could be an indication that the valuation of its reporting unit had significantly decreased; and
– whether there had been any significant increases to the weighted-average cost of capital rates used, which could materially lower the Company’s prior valuation conclusions under a discounted cash flow approach.
If the Company elects not to use this option, or it determines that it is more likely than not that the fair value of its reporting unit is less than its net book value, then the Company performs the quantitative goodwill impairment test. The quantitative goodwill impairment test requires the Company to compare the fair value of its reporting unit with its carrying amount. If fair value is determined to be less than carrying value, an impairment loss is recognized for the amount of the carrying value that exceeds the amount of its reporting unit’s fair value, not to exceed the total amount of goodwill allocated to its reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of its reporting unit when measuring the goodwill impairment loss, if applicable. Management determines the fair value of its reporting unit using a weighting of the income and market approaches. Under the income approach, it uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates and long-term discount rates, among others. For the market approach, it uses the guideline public company method. Under this method management utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit, to create valuation multiples that are applied to the operating performance of its reporting unit being tested, in order to obtain its respective fair value. In order to assess the reasonableness of the calculated value, the fair value of the reporting unit is reconciled to the Company’s total market capitalization, allowing for a reasonable control premium.
During fiscal 2025, the Company used a combination of the quantitative and qualitative methods of assessing goodwill. During fiscal 2024, the Company elected to use the qualitative method of assessing goodwill. In all periods presented, management concluded the reporting unit fair values exceeded their carrying amounts as of the assessment dates and no risk of impairment existed.
The Company’s next annual impairment assessment will be performed as of the first day of the fourth quarter of the fiscal year ending October 31, 2026 (fiscal 2026) unless indicators arise that would require the Company to reevaluate at an earlier date.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table presents the changes in goodwill during fiscal 2025 and fiscal 2024:

  2025 2024
Balance at beginning of year $ 26,909,775   $ 26,909,775  
Acquisition (1)
35,405   —  
Balance at end of year $ 26,945,180   $ 26,909,775  

_______________________________________
(1) The fiscal 2025 acquisition was not material to the Company.

Intangible Assets
The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of assets may not be recoverable. If required, recoverability of these assets is determined by comparison of their carrying value to the estimated future undiscounted cash flows the assets are expected to generate over their remaining estimated useful lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their estimated fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique.
As of November 1, 2025 and November 2, 2024, the Company’s intangible assets consisted of the following:
  November 1, 2025 November 2, 2024
  Gross Carrying
Amount Accumulated
Amortization Gross Carrying
Amount Accumulated
Amortization
Customer relationships $ 10,335,903   $ 5,311,189   $ 10,335,903   $ 4,561,856  
Technology-based 7,617,866   4,628,765   7,597,471   3,786,054  
Trade-name 72,200   72,200   72,200   72,200  

Assembled workforce 1,800   1,800   1,800   1,800  

Total $ 18,027,769   $ 10,013,954   $ 18,007,374   $ 8,421,910  

Amortization expense related to intangible assets was $ 1.6  billion, $ 1.7  billion and $ 2.0  billion in fiscal 2025, 2024 and 2023, respectively, and is recorded in cost of sales and amortization of intangibles on the Consolidated Statements of Income. The remaining amortization expense will be recognized over the remaining weighted average life of approximately 3.4 years.
The Company expects annual amortization expense for intangible assets as follows:
Fiscal Year Amortization Expense
2026 $ 1,537,505  
2027 $ 1,533,013  
2028 $ 1,465,336  
2029 $ 1,128,237  
2030 $ 404,189  

g. Grant Accounting
Certain of the Company’s subsidiaries have received grants from governmental agencies. These grants include capital, employment and research and development grants. Capital grants for the acquisition of property, plant and equipment are netted against the related capital expenditures and amortized as a credit to depreciation expense over the estimated useful life of the related asset. Employment grants, which relate to employee hiring and training, and research and development grants are recognized in earnings in the period in which the related expenditures are incurred by the Company.
In August 2022, the U.S. government enacted the CHIPS and Science Act of 2022 (CHIPS Act), which provides funding for manufacturing grants and research investments and establishes an investment tax credit for certain investments in U.S. semiconductor manufacturing. As of November 1, 2025, the Company recorded $ 96.3  million and $ 167.2  million as offsets within current income taxes payable and in other assets , respectively, with corresponding reductions to the carrying amounts of the qualifying manufacturing assets on the Consolidated Balance Sheet. As of November 2, 2024, the Company recorded $ 106.3 million and $ 174.5 million as offsets within current income taxes payable and in other assets , respectively, with a corresponding reduction to the carrying amounts of the qualifying manufacturing assets on the Consolidated Balance Sheet.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

h. Translation of Foreign Currencies
Generally, the functional currency of the Company’s foreign operations is the U.S. dollar. In certain entities where that is not the case, gains and losses resulting from translation of the foreign currencies into U.S. dollars are recorded in AOCI. Transaction gains and losses and re-measurement of foreign currency denominated assets and liabilities are included in income currently, including those at the Company’s principal foreign manufacturing operations where the functional currency is the U.S. dollar. Foreign currency transaction gains or losses are included in other, net in the Consolidated Statements of Income.
i. Derivative Instruments and Hedging Agreements
Foreign Exchange Exposure Management  — The Company enters into forward foreign currency exchange contracts to offset certain operational and balance sheet exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar, primarily the Euro; other significant exposures include the British Pound, Philippine Peso, Thai Baht, Malaysian Ringgit and the Japanese Yen. Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less. Hedges related to anticipated transactions are matched with the underlying exposures at inception and designated and documented as cash flow hedges. They are qualitatively evaluated for effectiveness on a quarterly basis. The gain or loss on the derivatives are reported as a component of AOCI in shareholders’ equity and reclassified into earnings in the same line item on the Consolidated Statements of Income as the impact of the hedged transaction in the same period during which the hedged transaction affects earnings.
The total notional amounts of forward foreign currency derivative instruments designated as hedging instruments of cash flow hedges as of November 1, 2025 and November 2, 2024 was $ 297.0 million and $ 257.0 million, respectively. The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s Consolidated Balance Sheets as of November 1, 2025 and November 2, 2024 were as follows:
Fair Value At
Balance Sheet Location November 1, 2025 November 2, 2024
Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 4,403   $ 780  
Forward foreign currency exchange contracts Accrued liabilities $ 4,399   $ 4,235  

Additionally, the Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the re-measurement of certain recorded assets and liabilities in a non-functional currency. Changes in the fair value of these undesignated hedges are recognized in other (income) expense immediately as an offset to the changes in the fair value of the asset or liability being hedged. As of November 1, 2025 and November 2, 2024, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $ 207.3 million and $ 176.8 million, respectively.
Fair Value At
Balance Sheet Location November 1, 2025 November 2, 2024
Undesignated hedges related to forward foreign currency exchange contracts
Prepaid expenses and other current assets $ 2,305   $ 6,538  
Undesignated hedges related to forward foreign currency exchange contracts
Accrued liabilities $ 3,576   $ 12,044  

All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparties to net settle amounts owed to each other. As of November 1, 2025 and November 2, 2024, none of the netting arrangements involved collateral.
Interest Rate Exposure Management  — The Company’s current and future debt may be subject to interest rate risk. The Company utilizes interest rate derivatives to alter interest rate exposure in an attempt to reduce the effects of changes in interest rates. During fiscal 2023, the Company entered into interest rate swap transactions related to its outstanding $ 1.0  billion aggregate principal amount of 2.1 % senior unsecured notes (the 2031 Notes) where the Company swapped the notional amount of its $ 1.0  billion of fixed rate debt at 2.1 % into floating interest rate debt through April 1, 2031. The fair value of the swaps at inception was zero and subsequent changes in the fair value of the interest rate swaps were reflected in the carrying value of the interest rate swaps on the balance sheet. The carrying value of the debt on the balance sheet was adjusted by an equal and offsetting amount. The interest rate swaps were designated and qualified as fair value hedges. The Company does not consider
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

the risk of counterparty default to be significant. The gain or loss on the hedged item attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows:

November 1, 2025 November 2, 2024
Balance Sheet Location Loss on Swaps Gain on Note Loss on Swaps Gain on Note
Accrued liabilities $ 12,550   $ —   $ 36,855   $ —  
Long-term debt
$ —   $ 12,550   $ —   $ 36,855  

The market risk associated with the Company’s derivative instruments results from currency exchange rate or interest rate movements that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. The counterparties to the agreements relating to the Company’s derivative instruments consist of a number of major international financial institutions with high credit ratings. Based on the credit ratings of the Company’s counterparties as of November 1, 2025 and November 2, 2024, nonperformance is not perceived to be a material risk. Furthermore, none of the Company’s derivatives are subject to collateral or other security arrangements and none contain provisions that are dependent on the Company’s credit ratings from any credit rating agency. While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of the Company’s exposure to credit risk. The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the obligations of the Company to the counterparties. As a result of the above considerations, the Company does not consider the risk of counterparty default to be significant.
The Company records the fair value of its derivative financial instruments in its Consolidated Financial Statements in other current assets, other assets, accrued liabilities, other non-current liabilities and long-term debt, depending on their net position, regardless of the purpose or intent for holding the derivative contract. Changes in the fair value of designated cash flow hedges are recorded in AOCI and reclassified into earnings in the same line item on the Consolidated Statements of Income as the impact of the hedged transaction when the underlying contract matures. Changes in the fair value of designated fair value hedges are recorded on the Consolidated Balance Sheets as a swap asset or an accrued liability with an offsetting increment/decrement to the long-term debt balance, which is the underlying item being hedged. Changes in the fair values of derivatives not qualifying for hedge accounting are reported in earnings as they occur.
For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the Consolidated Statements of Income related to forward foreign currency exchange contracts, see Note 2o, Accumulated Other Comprehensive (Loss) Income, of the Notes to Consolidated Financial Statements.
j. Fair Value
The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Level 1  — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2  — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3  — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.
The tables below, set forth by level, presents the Company’s financial assets and liabilities, excluding accrued interest components, that were accounted for at fair value on a recurring basis as of November 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 November 1, 2025 and November 2, 2024, the Company held $ 1.4 billion and $ 1.4 billion, respectively, of cash that was
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

excluded from the tables below.
  November 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 $ 740,730   $ —   $ 740,730  
Corporate obligations (1) —   397,707   397,707  

Short-term investments (2) :

Available-for-sale:

Corporate obligations (1) —   656,839   656,839  
Bank obligations (1) —   496,076   496,076  

Other assets:
Forward foreign currency exchange contracts (3) —   6,708   6,708  
Deferred compensation investments 105,188   —   105,188  

Total assets measured at fair value $ 845,918   $ 1,557,330   $ 2,403,248  
Liabilities

Forward foreign currency exchange contracts (3) $ —   $ 7,975   $ 7,975  
Interest rate derivatives (4) —   12,550   12,550  
Total liabilities measured at fair value $ —   $ 20,525   $ 20,525  

(1) The amortized cost of the Company’s investments classified as available-for-sale as of November 1, 2025 was $ 1.6  billion.
(2) Available-for-sale securities are classified as current assets on the Consolidated Balance Sheets if the securities are available to be converted into cash to fund current operations.
(3) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of the Notes to Consolidated Financial Statements for more information related to the Company’s master netting arrangements.
(4) 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 2i, Derivative Instruments and Hedging Agreements, of the Notes to Consolidated Financial Statements.

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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

  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 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 2i, Derivative Instruments and Hedging Agreements , of the Notes to 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 2i, Derivative Instruments and Hedging Agreements, of the Notes to Consolidated Financial Statements.
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
Cash equivalents and short-term investments — These investments are adjusted to fair value based on quoted market prices or are determined using a yield curve model based on current market rates.
Deferred compensation plan investments  — The fair value of these mutual fund, money market fund and equity investments are based on quoted market prices.
Forward foreign currency exchange contracts  — The estimated fair value of forward foreign currency exchange contracts, which includes derivatives that are accounted for as cash flow hedges and those that are not designated as cash flow hedges, is based on the estimated amount the Company would receive if it sold these agreements at the reporting date taking into consideration current exchange rates as well as the creditworthiness of the counterparty for assets and the Company’s creditworthiness for liabilities. The fair value of these instruments is based upon valuation models using current market information such as strike price, spot rate, forward points, and maturity date.
Interest rate derivative  — The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Assets and Liabilities Not Recorded at Fair Value on a Recurring Basis
Held for sale assets — The Company has classified the assets held for sale at carrying value. However, if they were to be carried at fair value, they would be considered a Level 3 fair value measurement and would be determined based on the use of appraisals and input from market participants.
Debt — The table below presents the estimated fair value 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 ($ 446.6  million and $ 547.7  million as of November 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. See Note 12, Debt , of the Notes to Consolidated Financial Statements for further discussion related to outstanding debt.

November 1, 2025 November 2, 2024
Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value

2025 Notes, due April 2025 $ —   $ —   $ 400,000   $ 397,027  

2026 Notes, due December 2026 900,000   895,623   900,000   882,795  

2027 Notes, due June 2027 440,212   436,916   440,212   421,077  
2028 Notes, due June 2028 850,000   856,345   —   —  
2028 Notes, due October 2028 750,000   704,186   750,000   673,316  
2030 Notes, due June 2030 650,000   659,834   —   —  
2031 Notes, due October 2031 1,000,000   884,390   1,000,000   843,766  
2032 Notes, due October 2032 300,000   301,546   300,000   287,172  
2034 Notes, due April 2034 550,000   571,370   550,000   553,375  
2036 Notes, due December 2036 144,278   138,756   144,278   136,718  
2041 Notes, due October 2041 750,000   555,925   750,000   534,435  
2045 Notes, due December 2045 332,587   327,992   332,587   322,942  
2051 Notes, due October 2051 1,000,000   662,609   1,000,000   655,668  
2054 Notes, due April 2054 550,000   541,087   550,000   541,912  
Total Debt $ 8,217,077   $ 7,536,579   $ 7,117,077   $ 6,250,203  

k. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates relate to the useful lives of fixed assets and identified intangible assets; allowances for doubtful accounts and customer returns; the net realizable value of inventory; potential reserves relating to litigation matters; accrued liabilities, including estimates of variable consideration related to distributor sales; accrued taxes; uncertain tax positions; deferred tax valuation allowances; assumptions pertaining to stock-based compensation payments and defined benefit plans; and fair value of acquired assets and liabilities, including inventory, property, plant and equipment, goodwill and acquired intangibles; and other reserves. Actual results could differ from those estimates and such differences may be material to the financial statements.
l. Concentrations of Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments and trade accounts receivable.
The Company maintains cash, cash equivalents and short-term investments with high credit quality counterparties, continuously monitors the amount of credit exposure to any one issuer and diversifies its investments in order to minimize its credit risk.
The Company sells its products to distributors and original equipment manufacturers (OEMs) involved in a variety of industries including industrial, communications, automotive and consumer end markets. The Company has adopted credit policies and standards to accommodate growth in these markets. The Company performs continuing credit evaluations of its
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

customers’ financial condition and although the Company generally does not require collateral, the Company may require letters of credit from customers in certain circumstances. The Company provides reserves for estimated amounts of accounts receivable that may not be collected.
Revenue attributable to significant distributors whose revenue as a percentage of total revenue was 10% or greater of total revenue is presented in the following table:

Year Ended

November 1, 2025 November 2, 2024 October 28, 2023
Distributor 1
24 % 24 % 25 %
Distributor 2
* 12 % 10 %
Distributor 3
13 % 12 % *

___________________________________________________________
* Revenue for this distributor was not greater than 10% of total revenue for this period.
No other customer accounted for greater than 10% of total revenue in any period presented.
m. Concentration of Other Risks
The semiconductor industry is characterized by rapid technological change, competitive pricing pressures and cyclical market patterns. The Company’s financial results are affected by a wide variety of factors, including general economic conditions worldwide, economic conditions specific to the semiconductor industry, the timely implementation of new manufacturing technologies, the ability to safeguard patents and intellectual property in a rapidly evolving market and reliance on assembly and test subcontractors, third-party wafer fabricators and independent distributors. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns at various times. The Company is exposed to the risk of obsolescence of its inventory depending on the mix of future business. Additionally, more than half of the Company’s purchases of external wafer and foundry services are from a limited number of suppliers, such as Taiwan Semiconductor Manufacturing Company (TSMC) and others. If these suppliers or any of the Company’s other key suppliers are unable or unwilling to manufacture and deliver sufficient quantities of components, on the time schedule and of the quality that the Company requires, the Company may be forced to engage additional or replacement suppliers, which could result in significant expenses and disruptions or delays in manufacturing, product development and shipment of product to the Company’s customers.
n. Revenue Recognition
Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company recognizes revenue when all of the following criteria are met: (1) the Company has entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of the Company’s shipping terms permit the Company to recognize revenue at point of shipment or delivery. Certain shipping terms require the goods to be through customs or be received by the customer before title passes. In those instances, the Company defers the revenue recognized until title and control of the promised goods have passed to the customer. Shipping costs are charged to selling, marketing, general and administrative expense as incurred. Sales taxes are excluded from revenue.
Revenue from contracts with the United States government, government prime contractors and certain commercial customers is recorded over time using either units delivered or costs incurred as the measurement basis for progress toward completion. These measures are used to measure results directly and is generally the best measure of progress toward completion in circumstances in which a reliable measure of output can be established. Estimated revenue in excess of amounts billed is reported as unbilled receivables. Contract accounting requires judgment in estimating costs and assumptions related to technical issues and delivery schedule. Contract costs include material, subcontract costs, labor and an allocation of indirect costs. The estimation of costs at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Changes in contract performance, estimated gross margin, including the impact of final contract settlements, and estimated losses are recognized in the period in which the changes or losses are determined.
Performance Obligations : Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit products. Such sales represent a single performance obligation because the sale is one type of good or includes multiple goods that are neither capable of being distinct nor separable from the other
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

promises in the contract. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates and with an original expected duration of one year or less. The Company generally offers a twelve-month warranty for its products. The Company’s warranty policy provides for replacement of defective products. Specific accruals are recorded for known product warranty issues. Product warranty expenses during fiscal 2025, fiscal 2024 and fiscal 2023 were not material.
Transaction Price : The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to direct customers and sales to distributors in which both the sale to the distributor and the sale to the end customer occur within the same reporting period. Variable consideration includes sales in which the amount of consideration that the Company will receive is unknown as of the end of a reporting period. The vast majority of such consideration are credits issued to the distributor due to price protection, but also include sales made to distributors under agreements that allow certain rights of return, referred to as stock rotation. Price protection represents price discounts granted to certain distributors to allow the distributor to earn an appropriate margin on sales negotiated with certain customers and in the event of a price decrease subsequent to the date the product was shipped and billed to the distributor. Stock rotation allows distributors limited levels of returns in order to reduce the amounts of slow-moving, discontinued or obsolete product from their inventory. A liability for distributor credits covering variable consideration is made based on the Company’s estimate of historical experience rates as well as considering economic conditions and contractual terms. To date, actual distributor claims activity has been materially consistent with the provisions the Company has made based on its historical estimates. For fiscal 2025 and fiscal 2024, sales to distributors were approximately $ 6.1 billion and $ 5.5 billion, respectively, net of variable consideration for which the liability balances as of November 1, 2025 and November 2, 2024 were $ 785.1 million and $ 508.7 million, respectively, and were recorded in accrued liabilities on the Consolidated Balance Sheets.
Contract Balances : Accounts receivable represents the Company’s unconditional right to receive consideration from its customers. Payments are typically due within 30 to 45 days of invoicing and do not include a significant financing component. To date, there have been no material credit losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the Consolidated Balance Sheets in any of the periods presented.
o. Accumulated Other Comprehensive (Loss) Income
AOCI includes certain transactions that have generally been reported in the Consolidated Statement of Shareholders’ Equity. The changes in components of AOCI at November 1, 2025 and November 2, 2024 consisted of the following:
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 ( 189 ) 1,163   11,516   12,490  
Amounts reclassified out of other comprehensive income
—   17,781   2,094   19,875  
Tax —   ( 3,519 ) 1,828   ( 1,691 )
Other comprehensive income ( 189 ) 15,425   15,438   30,674  
November 1, 2025 $ ( 71,700 ) $ ( 69,777 ) $ ( 13,105 ) $ ( 154,582 )

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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The amounts reclassified out of AOCI into the Consolidated Statements of Income, with presentation location during each period were as follows:

Comprehensive Income Component 2025 2024 Location
Changes in unrealized holding gains/losses on derivatives
Currency forwards $ 1,338   $ ( 775 ) Cost of sales
936   ( 219 ) Research and development
583   ( 3,762 ) Selling, marketing, general and administrative

Interest rate derivatives 14,924   14,924   Interest expense
17,781   10,168   Total before tax
( 3,228 ) ( 2,140 ) Tax

$ 14,553   $ 8,028  

Amortization of pension components included in the computation of net periodic benefit cost

Actuarial losses (1) $ 2,094   $ 1,032  

Total amounts reclassified out of AOCI, net of tax $ 16,647   $ 9,060  

_______________________________________
(1) The amortization of pension components is included in the computation of net periodic benefit cost. See Note 9, Retirement Plans, of the Notes to Consolidated Financial Statements for further information .
p. Income Taxes
The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of income tax credits, benefits, and deductions, and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of the recognition of certain expenses for tax and financial statement purposes. The likelihood of the realization of deferred tax assets is assessed and a corresponding valuation allowance is recorded as necessary if management determines those deferred tax assets may not be realized due to the uncertainty of the timing and amount to be realized of certain state and international tax credit carryovers. In reaching this conclusion, the Company evaluates certain relevant criteria including the existence of deferred tax liabilities that can be used to realize deferred tax assets, the taxable income in prior carryback years in the impacted state and international jurisdictions that can be used to absorb net operating losses and taxable income in future years. Judgments regarding future profitability may change due to future market conditions, changes in U.S. or international tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets, which may result in an increase or decrease to the income tax provision in future periods.
The Company accounts for uncertain tax positions by first determining if it is “more likely than not” that a tax position will be sustained by the appropriate taxing authorities prior to recording any benefit in the Consolidated Financial Statements. An uncertain income tax position is not recognized if it has less than a 50% likelihood of being sustained. For those tax positions where it is more likely than not that a tax position will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Management classifies interest and penalties related to uncertain tax positions within the provision for income taxes line of the Consolidated Statements of Income. Management reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in known facts or circumstances, changes in tax law, effectively settled issues under audit, and new guidance on legislative interpretations. A change in these factors could result in the recognition of an increase or decrease to the Company’s income tax provision which could materially impact its consolidated financial position and results of operations.
In the ordinary course of global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of cost reimbursement and royalty arrangements among related entities. Although the Company believes its estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in the historical income tax provisions and income tax liabilities. In the event management’s assumptions are incorrect, the differences could have a material impact on its income tax provision and operating results in the period in which such determination is made. In addition to the factors described above, the current and expected effective tax rate is based on then-current tax law. Significant changes in enacted tax law could affect these
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

estimates. See Note 10, Income Taxes, of the Notes to Consolidated Financial Statements for further information related to income taxes.
q. Earnings Per Share of Common Stock    
Basic earnings per share is computed based only on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential future issuances of common stock relating to stock option programs and other potentially dilutive securities using the treasury stock method. In calculating diluted earnings per share, the dilutive effect of stock options and restricted stock units is computed using the average market price for the respective period. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money and restricted stock units. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of in-the-money stock options. Potential shares related to certain of the Company’s outstanding stock options and restricted stock units were excluded because they were anti-dilutive. Those potential shares, determined based on the weighted average exercise prices during the respective periods, could be dilutive in the future.
The following table sets forth the computation of basic and diluted earnings per share:
2025 2024 2023
Net income $ 2,267,342   $ 1,635,273   $ 3,314,579  

Basic shares:      
Weighted-average shares outstanding 494,381   496,166   502,232  
Earnings per common share basic $ 4.59   $ 3.30   $ 6.60  

Diluted shares:      
Weighted-average shares outstanding 494,381   496,166   502,232  
Assumed exercise of common stock equivalents 2,328   2,531   3,727  
Weighted-average common and common equivalent shares 496,709   498,697   505,959  
Earnings per common share diluted $ 4.56   $ 3.28   $ 6.55  
Anti-dilutive shares related to:      
Outstanding stock options 94   71   253  

r. Stock-Based Compensation
Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards ultimately expected to vest and is recognized as an expense on a straight-line basis over the vesting period, which is generally four years for stock options and restricted stock units, or in annual installments of 25 % on each of the first, second, third and fourth anniversaries of the date of grant. Restricted stock units with service and performance or market conditions generally vest in one installment on the third anniversary of the date of grant. The maximum contractual term of all stock options is ten years .
Determining the amount of stock-based compensation expense to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of awards. These estimates may be based on different valuation models depending upon the type of award and may include assumptions, such as expected volatility, expected term, risk-free interest rate, expected dividend yield, forfeiture rate and others. The Company uses the Black-Scholes valuation model to calculate the grant-date fair value of stock option awards. The grant-date fair value of restricted stock units with a service condition and restricted stock units with both service and performance conditions is calculated using the value of the Company’s common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting. For restricted stock units with both service and performance conditions, this grant-date fair value is also impacted by the number of units that are expected to vest during the performance period and is adjusted through the related stock-based compensation expense at each reporting period based on the probability of achievement of that performance condition. If the Company determines that an award is unlikely to vest, any previously recorded stock-based compensation expense is reversed in the period of that determination. The grant date fair value of restricted stock units and performance-based stock options with both service and market conditions is calculated using the Monte Carlo simulation model to estimate the probability of satisfying the performance condition stipulated in the award grant, including the possibility that the market condition may not be satisfied.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The fair value of shares issued under the Company’s employee stock purchase plan (ESPP) is computed using the Black-Scholes model at the commencement of an offering period in June and December of each year and the related expense is recorded over the offering period.
See Note 3, Stock-Based Compensation and Shareholders ’ Equity , of the Notes to Consolidated Financial Statements for additional information relating to stock-based compensation.
s. Other Investments
Other investments consist of interests in venture capital funds and other long-term investments and are recorded in Other assets on the Consolidated Balance Sheets. Investments are accounted for using the equity method of accounting or cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. For equity method investments, realized gains and losses are reflected in other, net based upon the Company’s ownership share of the investee’s financial results.
t. New Accounting Pronouncements
Standards 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. The Company adopted ASU 2023-07 in fiscal 2025. See Note 4, Industry, Segment and Geographic Information, of the Notes to Consolidated Financial Statements for additional information.
Standards to Be Implemented
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.

3. Stock-Based Compensation and Shareholders’ Equity
Equity Compensation Plans
The Company grants, or has granted, stock options and other stock and stock-based awards under the Company’s 2020 Equity Incentive Plan (2020 Plan), which was approved by shareholders in March 2020. The 2020 Plan provides for the issuance of up to 21.2 million shares of the Company’s common stock, which includes shares that remained available or became available under the Company’s previous equity compensation plans, including the Amended and Restated 2006 Stock Incentive Plan and the Amended and Restated 2010 Equity Incentive Plan. The 2020 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. Employees, officers, directors, consultants and advisors of the Company and its subsidiaries are eligible to be granted awards under the 2020 Plan. No award may be made under the 2020 Plan after March 11, 2030, but awards previously granted may extend beyond that date. The Company does not intend to grant further equity awards under any previous legacy equity compensation plans. As of November 1, 2025, a total of 11.6 million shares of the Company’s common stock were available for future issuance under the 2020 Plan.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Modification of Awards
The Company has, from time to time, modified the terms of its equity awards to employees and directors. The modifications made to the Company’s equity awards in fiscal 2025, fiscal 2024 and fiscal 2023 did not result in significant incremental compensation costs, either individually or in the aggregate.
Employee Stock Purchase Plan
The Company offers an ESPP to eligible employees, providing the opportunity to purchase shares of the Company’s common stock at a discount through payroll deductions. Offering periods begin in June and December each year. U.S. employees are allowed to purchase the Company’s common stock at the lesser of 85 % of the fair market value of the common stock at either the beginning or end of the offering period. Eligible employees outside of the U.S. are allowed to purchase the Company’s common stock at the lesser of 80 % of the fair market value of the common stock at either the beginning or end of the offering period. As of November 1, 2025, a total of 3.7  million shares of the Company’s common stock were available for future grant under the ESPP.
Stock-Based Compensation Expense
The amount of stock-based compensation expense recognized during a period is based on the value of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered stock-based award. Based on an analysis of its historical forfeitures, the Company has applied an annual forfeiture rate of 5.0 % to all unvested stock-based awards as of November 1, 2025. This analysis will be re-evaluated annually and the forfeiture rate will be adjusted as necessary. Ultimately, the actual expense recognized over the vesting period will only be for those awards that vest.
Total stock-based compensation expense recognized is as follows:
2025 2024 2023
Cost of sales $ 40,202   $ 31,233   $ 36,703  
Research and development 134,245   109,011   116,354  
Selling, marketing, general and administrative 142,286   114,638   143,789  
Special charges, net 4,827   7,828   2,977  
Total stock-based compensation expense $ 321,560   $ 262,710   $ 299,823  

As of November 1, 2025 and November 2, 2024, the Company capitalized $ 14.5  million and $ 10.4 million, respectively, of stock-based compensation in inventory.
Stock-Based Compensation Activity
A summary of the stock option activity as of November 1, 2025 and changes during the fiscal year then ended is presented below:
Options
Outstanding
(in thousands) Weighted-
Average Exercise
Price Per Share Weighted-
Average
Remaining
Contractual
Term in Years Aggregate
Intrinsic
Value
Options outstanding at November 2, 2024
1,639   $ 105.94  

Options exercised ( 441 ) $ 81.09  
Options forfeited ( 1 ) $ 68.77  

Options outstanding and exercisable at November 1, 2025
1,197   $ 115.14   3.7 $ 142,441  

The total intrinsic value of options exercised (i.e., the difference between the market price at exercise and the price paid by the employee to exercise the options) during fiscal 2025, fiscal 2024 and fiscal 2023 was $ 64.2 million, $ 93.9 million and $ 95.0 million, respectively.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

A summary of the Company’s restricted stock unit and award activity as of November 1, 2025 and changes during the fiscal year then ended is presented below:
Restricted
Stock Units/Awards
Outstanding
(in thousands) Weighted-
Average Grant-
Date Fair Value
Per Share
Restricted stock units/awards outstanding at November 2, 2024
4,481   $ 186.81  
Units/Awards granted 2,379   $ 164.33  
Restrictions lapsed ( 1,957 ) $ 172.32  
Forfeited ( 476 ) $ 191.82  
Restricted stock units/awards outstanding at November 1, 2025
4,427   $ 180.59  

As of November 1, 2025, there was $ 640.2 million of total unrecognized compensation cost related to unvested stock-based awards comprised of restricted stock unit awards. That cost is expected to be recognized over a weighted-average period of 1.5 years. The total grant-date fair value of awards that vested during fiscal 2025, fiscal 2024 and fiscal 2023 was approximately $ 345.1 million, $ 309.0 million and $ 298.2 million, respectively.
Common Stock Repurchases
The Company’s share repurchase program has been in place since August 2004. In the aggregate, the Board of Directors has authorized the Company to repurchase $ 26.7 billion of the Company’s common stock under the program, which includes the $ 10.0 billion authorization approved by the Board of Directors on February 18, 2025. The Company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of the Company’s Board of Directors, the repurchase program will expire when the Company has repurchased all shares authorized under the program. As of November 1, 2025, the Company had repurchased a total of approximately 216.5 million shares of its common stock for approximately $ 17.0 billion under this program. An additional $ 9.7 billion remains available for repurchase of shares under the current authorized program. The repurchased shares are held as authorized but unissued shares of common stock.
The Company also, from time to time, repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units/awards or the exercise of stock options. The withholding amount is based on the employee’s minimum statutory withholding requirement.
Preferred Stock
The Company has 471,934 authorized shares of $ 1.00 par value preferred stock, none of which is issued or outstanding. The Board of Directors is authorized to fix designations, relative rights, preferences and limitations on the preferred stock at the time of issuance.

4.      Industry, Segment and Geographic Information
The Company operates and tracks its results at the consolidated company level in one operating segment and one reportable segment. The Company designs, develops, manufactures and markets a broad range of ICs. The Company uses a highly-integrated approach in developing its products in that discrete technologies developed by the Company are frequently integrated across many of its products, and substantially all of the Company’s ICs are manufactured under similar processes with raw materials in either the Company’s own production facilities or by third-party wafer fabricators using proprietary processes. The ICs marketed by the Company are sold globally through a direct sales force, third-party distributors, independent sales representatives and via the Company’s website to the same types of customers spanning a wide range of applications. Accordingly, the Company operates under a single operating segment.
The Company’s Chair and Chief Executive Officer has been identified as its Chief Operating Decision Maker (CODM). The Company’s organizational structure is based along functional lines with each functional manager reporting to the CODM or to a direct report of the CODM. The CODM regularly reviews income and expense items at the consolidated company level. He primarily uses consolidated net income as reported on the Consolidated Statements of Operations to evaluate performance and allocate resources. This measure is utilized during the Company’s budgeting and forecasting process to assess profitability and inform strategic initiatives, capital allocation and other operating decisions. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table presents a summary of consolidated net income inclusive of significant segment expenses and other expense information provided to the CODM:
Year Ended
November 1, 2025 November 2, 2024 October 28, 2023
Revenue
$ 11,019,707   $ 9,427,157   $ 12,305,539  
Less:
Cost of sales, including human capital expenses therein 4,246,229   4,045,814   4,428,321  
Operating expenses:
Employee compensation costs 2,148,609   1,768,311   2,051,976  
Amortization of acquired intangible assets 749,662   754,784   959,618  
Research and development related costs (excluding employee compensation costs) 530,071   466,134   498,281  
Special charges, net 69,980   37,258   160,710  

Other operating expense (excluding employee compensation costs) (1)
342,660   322,058   383,521  
Nonoperating expense (income)
220,384   255,458   215,109  
Provision for income taxes 444,770   142,067   293,424  
Net income $ 2,267,342   $ 1,635,273   $ 3,314,579  

_______________________________________
(1) Includes depreciation and amortization expenses, facilities expenses, legal expenses and other discretionary expenses.
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.
  2025 2024 2023
Revenue % of
Total
Revenue (1) Revenue % of
Total
Revenue (1) Revenue % of
Total
Revenue (1)
Industrial $ 4,929,409   45   % $ 4,290,324   46   % $ 6,565,376   53   %
Automotive 3,277,865   30   % 2,837,522   30   % 2,903,979   24   %
Consumer 1,434,568   13   % 1,207,880   13   % 1,244,598   10   %
Communications 1,377,865   13   % 1,091,431   12   % 1,591,586   13   %
Total revenue $ 11,019,707   100   % $ 9,427,157   100   % $ 12,305,539   100   %

_______________________________________
(1) The sum of the individual percentages may not equal the total due to rounding.
Revenue by Sales Channel
The following table summarizes revenue by sales 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 (OEMs). Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time.
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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2025 2024 2023
Revenue % of
Total
Revenue (1) Revenue % of
Total
Revenue (1) Revenue % of
Total
Revenue (1)
Distributors $ 6,144,819   56   % $ 5,505,779   58   % $ 7,534,894   61   %
Direct customers 4,718,993   43   % 3,772,945   40   % 4,603,166   37   %
Other 155,895   1   % 148,433   2   % 167,479   1   %
Total revenue $ 11,019,707   100   % $ 9,427,157   100   % $ 12,305,539   100   %

_______________________________________
(1) The sum of the individual percentages may not equal the total due to rounding.
Geographic Information
Geographic revenue information for fiscal 2025, fiscal 2024 and fiscal 2023 reflects the geographic location of the distributors or OEMs who purchased the Company’s products. This may differ from the geographic location of the end customers particularly in cases where a third-party contract manufacturer purchases the Company’s products through distributors. In all periods presented, the predominant regions comprising “Rest of North and South America” are Mexico and Canada; the predominant regions comprising “Europe” are Germany, the Netherlands, France and Israel; and the predominant regions comprising “Rest of Asia” are Taiwan, South Korea, Malaysia and Singapore.
2025 2024 2023
Revenue      
United States $ 3,238,145   $ 2,840,426   $ 4,165,296  
Rest of North and South America 162,470   62,318   88,579  
Europe 2,285,598   2,109,529   3,001,871  
Japan 989,916   1,085,631   1,397,119  
China 2,858,286   2,128,840   2,229,631  
Rest of Asia 1,485,292   1,200,413   1,423,043  
Subtotal all foreign regions
7,781,562   6,586,731   8,140,243  
Total revenue $ 11,019,707   $ 9,427,157   $ 12,305,539  
Property, plant and equipment      
United States $ 1,832,598   $ 1,907,527   $ 1,577,914  
Ireland 651,330   625,658   573,684  
Philippines 432,972   468,900   620,453  
Thailand 263,939   195,150   209,660  

Malaysia 36,922   108,286   123,574  
All other regions
97,935   110,029   113,872  
Subtotal all foreign regions
1,483,098   1,508,023   1,641,243  
Total property, plant and equipment $ 3,315,696   $ 3,415,550   $ 3,219,157  

5.     Special Charges, Net
The Company monitors global macroeconomic conditions on an ongoing basis and continues to assess opportunities for improved operational effectiveness and efficiency, as well as a better alignment of expenses with revenues. As a result of these assessments, the Company has undertaken various actions resulting in special charges over the past several years.

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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Liabilities related to special charges, net are presented in accrued liabilities and other non-current liabilities on the Consolidated Balance Sheets. The activity is detailed below:
Accrued Special Charges Global Repositioning Actions Q4 2023 Plan

Balance at October 29, 2022
$ 52,070   $ —  
Employee severance and benefit costs 45,064   113,995  

Severance and benefit payments, net ( 60,153 ) ( 3,549 )

Balance at October 28, 2023
$ 36,981   (1) $ 110,446  
Employee severance and benefit costs ( 5,106 ) 41,907  

Severance and benefit payments, net ( 18,020 ) ( 151,636 )

Balance at November 2, 2024
$ 13,855   $ 717  
Employee severance and benefit costs 63,968   —  

Severance and benefit payments, net ( 73,708 ) ( 717 )

Balance at November 1, 2025
$ 4,115   $ —  

_________________________________________________________
(1) As of October 28, 2023, this balance was comprised of $ 13.8  million and $ 23.1  million recorded in Accrued liabilities and Other non-current liabilities, respectively, on the Consolidated Balance Sheet.

Global Repositioning Actions
The Company recorded net special charges of $ 591.6  million on a cumulative basis through November 1, 2025, as part of the integration of the acquisition of Maxim Integrated Products, Inc. (Maxim) and continued organizational initiatives to consolidate its global footprint related to certain manufacturing, engineering, sales, marketing and administrative offices and to better align its global workforce with the Company’s long-term strategic plan. The special charges include severance and fringe benefit costs, in accordance with the Company’s ongoing benefit plan or statutory requirements at foreign locations, and the write-off of acquired intellectual property due to the Company’s decision to discontinue certain product development strategies.
Q4 2023 Plan
In fiscal 2023, the Company committed to a plan to reorganize its business (the Q4 2023 Plan). The Company recorded net special charges of $ 155.9  million on a cumulative basis through November 2, 2024 related to the Q4 2023 Plan. The Q4 2023 Plan, consisting of voluntary and involuntary reductions-in-force and other cost-savings initiatives, was commenced to adjust the Company’s cost structure and business activities to better align with then weaker market demand and continued economic uncertainty in its end markets, as well as to make certain strategic shifts in its workforce necessary to achieve its long-term vision. The reductions-in-force impacted positions in manufacturing, engineering and selling, marketing, general and administrative functions.

6.     Accrued Liabilities
Accrued liabilities at November 1, 2025 and November 2, 2024 consisted of the following:
2025 2024
Distributor price adjustments and other revenue reserves $ 785,059   $ 508,722  
Accrued compensation and benefits 455,625   220,091  
Lease liabilities 72,905   68,130  
Accrued interest 67,296   45,517  
Interest rate swap 12,550   36,855  
Accrued withholdings related to ESPP 36,802   33,114  
Accrued taxes 35,250   23,143  
Accrued special charges 4,115   14,572  

Other 175,430   155,926  
Total accrued liabilities $ 1,645,032   $ 1,106,070  

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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

7.     Leases
The Company enters into operating leases which primarily relate to certain facilities and, to a lesser extent, finance leases. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. Lease assets represent the Company’s right to use underlying assets for the lease term, and lease liabilities represent the obligation to make lease payments over the lease term. At lease commencement, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. The Company has agreements with lease and non-lease components, which are accounted for as a single lease component. Non-lease components may include real estate taxes, insurance, maintenance, parking and other operating costs. If these costs are variable costs they are not included in the measurement of the right-of-use assets and lease liabilities, but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s leases have remaining lease terms of less than one year to approximately twenty years , some of which may include options to extend the initial term of the lease. These options are included in determining the initial lease term at lease commencement only if the Company is reasonably certain to exercise the option. Lease costs are recognized on a straight-line basis as lease expense over the lease term. For leases with terms of twelve months or less the Company recognizes the related lease payments as expense either on a straight-line basis over the lease term or as incurred depending on whether the lease payments are fixed or variable. The Company subleases certain properties that are not used in its core business operations. Sublease income was $ 15.0  million and $ 12.8  million in fiscal 2025 and fiscal 2024, respectively.
The following table presents supplemental balance sheet information related to the Company’s operating leases:
November 1, 2025 November 2, 2024
Assets
Operating lease right-of-use assets in Other assets $ 229,520   $ 242,548  
Liabilities
Operating lease liabilities in Accrued liabilities $ 72,905   $ 68,130  
Operating lease liabilities in Other non-current liabilities $ 283,904   $ 318,570  

Details of the Company’s operating leases are as follows:
November 1, 2025
November 2, 2024
Lease expense $ 67,340   $ 68,331  

Cash paid for amounts included in the measurement of operating lease liabilities
Cash flows from operating leases $ 83,556   $ 82,070  
Lease assets obtained in exchange for new lease liabilities $ 39,604   $ 15,801  
Weighted average remaining lease term 5.7 years 6.4 years
Weighted average discount rate 3.9 % 3.8 %

The following table presents the maturities of the Company’s operating lease liabilities as of November 1, 2025:
Fiscal year
2026
$ 85,606  
2027 78,456  
2028 64,504  
2029 58,970  
2030 50,531  
Thereafter 56,894  
Total future minimum operating lease payments 394,961  
Less: imputed interest ( 38,152 )
Present value of operating lease liabilities $ 356,809  

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ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table presents the future minimum cash receipts as a result of subleases as of November 1, 2025:
Fiscal year
2026
$ 15,683  
2027 16,153  
2028 16,635  
2029 16,886  
2030 12,480  
Thereafter —  
Total future minimum cash receipts $ 77,837  

8.     Commitments and Contingencies
From time to time, in the ordinary course of the Company’s business, the Company is involved in various claims, charges and litigation arising from, or related to, among other things, contractual matters, acquisitions, patents, trademarks, personal injury, environmental matters, product liability, insurance coverage, employment or employment benefits. As to such claims and litigation, the Company can give no assurance that it will prevail.

9.     Retirement Plans
The Company and its subsidiaries have various savings and retirement plans covering substantially all employees.
Defined Contribution Plans
The Company maintains a defined contribution plan for the benefit of its eligible U.S. employees. This plan provides for Company contributions of up to 5 % of each participant’s total eligible compensation. In addition, the Company contributes an amount equal to each participant’s pre-tax contribution, if any, up to a maximum of 3 % of each participant’s total eligible compensation. The total expense related to the defined contribution plans for all eligible U.S. employees was $ 74.9 million in fiscal 2025, $ 74.3 million in fiscal 2024 and $ 76.0 million in fiscal 2023.
Non-Qualified Deferred Compensation Plan
The Deferred Compensation Plan (DCP) allows certain members of management and other highly-compensated employees and non-employee directors to defer receipt of all or any portion of their compensation. The DCP was established to provide participants with the opportunity to defer receiving all or a portion of their compensation, which includes salary, bonus, commissions and director fees. Under the DCP, the Company provides all participants (other than non-employee directors) with Company contributions equal to 8 % of eligible deferred contributions. The DCP is a non-qualified plan that is maintained in a rabbi trust. The fair value of the investments held in the rabbi trust are included within other investments, with the current portion of the investment included in prepaid expenses and other current assets in the Consolidated Balance Sheets. See Note 2j, Fair Value , of the Notes to Consolidated Financial Statements for further information on these investments. The deferred compensation obligation represents DCP participant accumulated deferrals and earnings thereon since the inception of the DCP net of withdrawals. The deferred compensation obligation is included within other non-current liabilities, with the current portion of the obligation in accrued liabilities in the Consolidated Balance Sheets. The Company’s liability under the DCP is an unsecured general obligation of the Company.
Defined Benefit Pension and Post Retirement Benefit Plans
The Company also has various defined benefit pension and other retirement plans for certain non-U.S. employees that are consistent with local statutory requirements and practices. The total expense related to these plans was $ 71.2 million in fiscal 2025, $ 66.4 million in fiscal 2024 and $ 64.0 million in fiscal 2023.
The Company’s funding policy for its foreign defined benefit pension plans is consistent with the local requirements of each country. The plans’ assets consist primarily of U.S. and non-U.S. equity securities, bonds, property and cash. The Company has elected to measure defined benefit plan assets and obligations as of October 31, which is the month-end that is closest to its fiscal year-ends, which were November 1, 2025 for fiscal 2025 and November 2, 2024 for fiscal 2024.
In addition, the Company has a postretirement plan that provides postretirement medical expenses to certain former Maxim executives in the U.S.
70

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Components of Net Periodic Benefit Cost
Net annual periodic benefit cost of the Company’s pension and postretirement benefit plans for fiscal 2025, fiscal 2024 and fiscal 2023 is presented in the following table:
2025 2024 2023
Service cost $ 12,243   $ 8,643   $ 7,728  
Interest cost 10,172   9,564   8,773  
Expected return on plan assets ( 5,329 ) ( 5,061 ) ( 5,236 )

Recognized actuarial loss 2,107   1,345   1,168  
Subtotal $ 19,193   $ 14,491   $ 12,433  

Settlement impact —   820   173  

Net periodic benefit cost $ 19,193   $ 15,311   $ 12,606  

The service cost component of net periodic benefit cost above is recorded in Cost of sales, Research and development, Selling, marketing, general and administrative expenses within the Consolidated Statements of Income, while the remaining components are recorded to Other, net .
Benefit Obligations and Plan Assets
Obligation and asset data of the Company’s pension and postretirement benefit plans at November 1, 2025 and November 2, 2024 is presented in the following table:
2025 2024
Change in Benefit Obligation    
Benefit obligation at beginning of year $ 202,779   $ 167,868  
Service cost 12,243   8,643  
Interest cost 10,172   9,564  

Plan combinations
—   23,349  

Settlement —   ( 13,240 )

Actuarial (gain)/loss
( 19,248 ) 5,438  
Benefits paid ( 7,213 ) ( 3,152 )
Exchange rate adjustment 1,349   4,309  
Benefit obligation at end of year $ 200,082   $ 202,779  
Change in Plan Assets    
Fair value of plan assets at beginning of year $ 98,648   $ 87,606  
Actual return on plan assets ( 1,987 ) 9,479  
Employer contributions 10,382   10,273  
Plan combinations
—   4,602  

Settlements —   ( 13,240 )

Benefits paid ( 7,213 ) ( 3,152 )

Exchange rate adjustment ( 372 ) 3,080  
Fair value of plan assets at end of year $ 99,458   $ 98,648  
Reconciliation of Funded Status    
Funded status $ ( 100,624 ) $ ( 104,131 )
Amounts Recognized in the Balance Sheet    
Non-current assets $ 12,990   $ 6,111  

Current liabilities ( 3,275 ) ( 3,254 )
Non-current liabilities ( 110,339 ) ( 106,988 )
Net amount recognized $ ( 100,624 ) $ ( 104,131 )

71

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2025 2024
Reconciliation of Amounts Recognized in the Statement of Financial Position    

Net loss ( 12,351 ) ( 25,961 )
Accumulated other comprehensive loss ( 12,351 ) ( 25,961 )
Accumulated contributions less than net periodic benefit cost ( 88,273 ) ( 78,170 )
Net amount recognized $ ( 100,624 ) $ ( 104,131 )
Changes Recognized in Other Comprehensive Income (Loss)    
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss)    

Net gain/loss arising during the year $ ( 11,932 ) $ 1,019  
Plan combinations —   13,413  
Effect of exchange rates on amounts included in AOCI 429   1,363  
Amounts recognized as a component of net periodic benefit cost    

Amortization or settlement recognition of net loss ( 2,107 ) ( 2,165 )
Total recognized in other comprehensive gain/loss $ ( 13,610 ) $ 13,630  
Total recognized in net periodic cost and other comprehensive loss $ 5,583   $ 28,941  
Estimated amounts that will be amortized from AOCI over the next fiscal year    

Net loss $ ( 1,068 ) $ ( 2,148 )

The accumulated benefit obligation for the Company’s pension and postretirement benefit plans was $ 127.2 million and $ 132.7 million at November 1, 2025 and November 2, 2024, respectively.
Information relating to the Company’s pension and postretirement benefit plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets at November 1, 2025 and November 2, 2024 is presented in the following table:
2025 2024
Plans with projected benefit obligations in excess of plan assets:    
Projected benefit obligation $ 160,395   $ 155,777  
Fair value of plan assets $ 46,782   $ 43,944  
Plans with accumulated benefit obligations in excess of plan assets:    
Projected benefit obligation $ 82,486   $ 76,867  
Accumulated benefit obligation $ 56,462   $ 54,675  
Fair value of plan assets $ 7,751   $ 5,777  

Assumptions
The range of assumptions used for the Company’s pension and postretirement benefit plans reflects the different economic environments within the various countries as well as the differences in the attributes of the participants.
The projected benefit obligation was determined using the following weighted-average assumptions:
2025 2024
Discount rate 5.73   % 5.20   %
Rate of increase in compensation levels 5.85   % 5.23   %

Net annual periodic benefit cost was determined using the following weighted average assumptions:
2025 2024
Discount rate 5.20   % 5.73   %
Expected long-term return on plan assets 5.34   % 5.69   %
Rate of increase in compensation levels 5.23   % 4.34   %

72

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The expected long-term rate of return on assets is a weighted-average of the long-term rates of return selected for the various countries where the Company has funded pension plans. The expected long-term rate of return on assets assumption is selected based on the facts and circumstances that exist as of the measurement date and the specific portfolio mix of plan assets. Management, in conjunction with its actuaries, reviewed anticipated future long-term performance of individual asset categories and considered the asset allocation strategy adopted by the Company and/or the trustees of the plans. While the review considered recent fund performance and historical returns, the assumption is primarily a long-term prospective rate.
The Company’s investment strategy is based on an expectation that equity securities will outperform debt securities over the long term. Investments within each asset class are diversified to reduce the impact of losses in single investments. The use of derivative instruments is permitted where appropriate and necessary to achieve overall investment policy objectives and asset class targets. The Company establishes strategic asset allocation percentage targets and appropriate benchmarks for each significant asset class to obtain a prudent balance between return and risk. The interaction between plan assets and benefit obligations is periodically studied by the Company and its actuaries to assist in the establishment of strategic asset allocation targets.
Fair value of plan assets
The following table presents plan assets measured at fair value on a recurring basis by investment categories as of November 1, 2025 and November 2, 2024 using the same three-level hierarchy described in Note 2j, Fair Value , of the Notes to Consolidated Financial Statements:
November 1, 2025 November 2, 2024
Fair Value Measurement at Reporting Date Using: Fair Value Measurement at Reporting Date Using:
Quoted Prices in Active Markets for Identical Assets
(Level 1) Significant Other Observable Inputs
(Level 2) Total Quoted Prices in Active Markets for Identical Assets
(Level 1) Significant Other Observable Inputs
(Level 2) Total
Unit trust funds(1) $ —   $ 529   $ 529   $ —   $ 7,264   $ 7,264  
Equities(1) 7,407   2,368   9,775   6,675   —   6,675  
Fixed income securities(2) —   27,822   27,822   —   24,013   24,013  
Property (3) —   4,402   4,402   —   4,446   4,446  
Investment Funds (4) —   46,921   46,921   —   47,282   47,282  
Pooled Funds (5) —   6,178   6,178   —   4,582   4,582  
Cash and cash equivalents 3,831   —   3,831   4,386   —   4,386  
Total assets measured at fair value $ 11,238   $ 88,220   $ 99,458   $ 11,061   $ 87,587   $ 98,648  

_______________________________________
(1) The majority of the assets in these categories are invested in a mix of equities, including those from North America, Europe and Asia. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. Due to the nature of the underlying assets of these funds, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with governing documents. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded.
(2) Consists of funds primarily concentrated in non-U.S. debt instruments. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund.
(3) Consists of funds that primarily invest in global real estate and infrastructure funds. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund.
(4) Consists of liability driven investment funds that may hold a range of low-risk hedging instruments including but not limited to government bonds, interest rate and inflation swaps, physical inflation-linked and nominal gilts, synthetic gilts, cash and money market instruments. The investment funds are valued at the closing price reported if traded on an active market or at yields currently available on comparable securities of issuers with similar credit ratings.
(5) Consists of a fund-based variable insurance policy that declares a fixed return on a quarterly or annual basis. The fair value is the estimated surrender value of the policy.
73

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Estimated future cash flows
Expected fiscal 2026 Company contributions and estimated future benefit payments are as follows:
Expected Company Contributions  
2026 $ 9,353  
Expected Benefit Payments  

2025 $ 6,758  
2026 $ 7,201  
2027 $ 8,253  
2028 $ 9,344  
2029 $ 8,928  
2030 through 2034
$ 77,411  

10.     Income Taxes
The Company’s effective tax rate reflects the applicable tax rate in effect in the various tax jurisdictions around the world where the Company’s income is earned. The reconciliation of income tax computed at the U.S. federal statutory rates to income tax expense for fiscal 2025, fiscal 2024 and fiscal 2023 is as follows:
2025 2024 2023
U.S. federal statutory tax rate 21.0   % 21.0   % 21.0   %
Income tax provision reconciliation:      
Tax at statutory rate $ 569,544   $ 373,241   $ 757,681  
Net foreign income subject to lower tax rate ( 391,616 ) ( 219,294 ) ( 358,944 )
State income taxes, net of federal benefit 79,000   ( 10,646 ) 4,453  
Valuation allowance ( 79,204 ) 10,615   ( 6,641 )
Federal research and development tax credits ( 36,014 ) ( 53,420 ) ( 65,391 )
Change in uncertain tax positions 14,179   ( 19,514 ) 17,985  
Amortization of purchased intangibles 106,611   114,679   142,358  

Taxes attributable to the Tax Cuts and Jobs Act of 2017 ( 4,101 ) ( 3,977 ) ( 81,695 )
Taxes attributable to the One Big Beautiful Bill Act
153,763   —   —  
U.S. effects of international operations 51,314   ( 6,300 ) ( 98,286 )
Windfalls (under ASU 2016-09) ( 18,304 ) ( 22,985 ) ( 24,211 )

Other, net ( 402 ) ( 20,332 ) 6,115  
Total income tax provision
$ 444,770   $ 142,067   $ 293,424  

Income before income taxes for fiscal 2025, fiscal 2024 and fiscal 2023 includes the following components:
Income before income taxes (1) 2025 2024 2023

Domestic $ 520,188   $ 517,555   $ 846,592  
Foreign 2,191,924   1,259,785   2,761,411  
Income before income taxes $ 2,712,112   $ 1,777,340   $ 3,608,003  

_______________________________________
(1) Income before income taxes reflects deemed intercompany royalties in all periods presented.
74

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The components of the provision for income taxes for fiscal 2025, fiscal 2024 and fiscal 2023 are as follows:
2025 2024 2023
Current:      
Federal tax $ 492,570   $ 348,144   $ 303,146  
State 14,175   14,399   11,772  
Foreign 184,670   147,087   431,452  
Total current $ 691,415   $ 509,630   $ 746,370  
Deferred:      
Federal $ ( 455,194 ) $ ( 492,578 ) $ ( 508,741 )
State ( 7,018 ) 3,579   2,063  
Foreign 215,567   121,436   53,732  
Total deferred $ ( 246,645 ) $ ( 367,563 ) $ ( 452,946 )
Provision for income taxes
$ 444,770   $ 142,067   $ 293,424  

The Company accounts for global intangible low-taxed income (GILTI) under the deferred method. In fiscal 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, which revised the applicable GILTI tax rate for the Company’s fiscal years beginning in 2027. As a result, in fiscal 2025, the Company recorded a net deferred tax expense of $ 153.8 million related to the remeasurement of its GILTI-related deferred tax assets and liabilities.
The Company’s effective tax rate for fiscal 2023 was impacted by a discrete income tax benefit recorded of $ 81.7  million resulting from the approval granted by the Joint Committee on Taxation of its federal corporate income tax relief claim which reduced the amount of transition tax owed under the Tax Cuts and Jobs Act.
The Company carries other outside basis differences in its subsidiaries, primarily arising from acquisition accounting adjustments and certain undistributed earnings that are considered indefinitely reinvested. As of November 1, 2025, the Company has not recognized deferred income tax on $ 33.6 billion of outside basis differences because of its intent and ability to indefinitely reinvest these basis differences. These basis differences could be reversed through a sale of the subsidiaries or the receipt of dividends from the subsidiaries, as well as various other events, none of which are considered probable at this time. Determination of the amount of unrecognized deferred income tax liability related to these outside basis differences is not practicable.
75

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The significant components of the Company’s deferred tax assets and liabilities for fiscal 2025 and fiscal 2024 are as follows:
2025 2024
Deferred tax assets:    
Inventory reserves $ 35,338   $ 29,139  

Reserves for compensation and benefits 56,983   48,801  
Tax credit carryovers 241,678   318,469  

Stock-based compensation 23,812   22,290  

Net operating losses 33,461   41,340  
Intangible assets 1,684,244   1,871,218  
Lease liability 71,335   74,715  
Capitalization of R&D expenses (1)
804,017   624,682  
Other 68,118   71,049  
Total gross deferred tax assets 3,018,986   3,101,703  
Valuation allowance ( 263,875 ) ( 343,079 )
Total deferred tax assets 2,755,111   2,758,624  
Deferred tax liabilities:    

Depreciation ( 142,031 ) ( 139,556 )
Deferred GILTI tax liabilities (2)
( 2,272,775 ) ( 2,442,068 )
Right of use asset ( 50,965 ) ( 53,303 )
Acquisition-related intangibles ( 585,519 ) ( 664,337 )

Total gross deferred tax liabilities ( 3,051,290 ) ( 3,299,264 )
Net deferred tax liabilities $ ( 296,179 ) $ ( 540,640 )

_______________________________________________
(1) The Company included the effects of the mandatory capitalization and amortization of research and development expenses which began in fiscal 2023 under the Tax Cuts and Jobs Act.
(2) The Company’s effective tax rate for fiscal 2025 was impacted by a net deferred tax expense of $ 153.8 million recorded in fiscal 2025 related to the remeasurement of our GILTI-related deferred tax assets and liabilities attributable to the passage of the OBBBA.
The valuation allowances of $ 263.9  million and $ 343.1  million as of November 1, 2025 and November 2, 2024, respectively, are primarily for the Company’s state R&D credit carryforwards, foreign net operating losses and international credit carryforwards. The Company believes that it is more-likely-than-not that these credit carryovers will not be realized and as a result has recorded a partial valuation allowance.
The federal and state net operating losses of $ 21.0  million will begin to expire in fiscal 2027 while foreign net operating loss carryovers of $ 131.8  million have no expiration date. There are also $ 227.4  million of federal and state credit carryovers and $ 14.3  million of foreign investment tax credit carryovers that begin to expire in the fiscal year ending October 31, 2026.
As of November 1, 2025 and November 2, 2024, the Company had unrealized tax benefits, net of indirect tax benefits, of $ 166.2 million and $ 162.7 million, respectively, which if settled in the Company’s favor, would lower the Company’s effective tax rate in the period recorded. Liabilities for unrealized tax benefits are primarily classified as non-current because the Company believes that the ultimate payment or settlement of these liabilities will not occur within the next twelve months. As of November 1, 2025 and November 2, 2024, the Company had liabilities of approximately $ 87.8 million and $ 73.7 million, respectively, for interest and penalties, which is included within the provision for income taxes in the Consolidated Statements of Income.
76

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2023 through fiscal 2025:
Unrealized Tax Benefits

Balance, October 29, 2022
$ 165,327  

Additions for tax positions related to current year 5,895  
Additions for tax positions related to prior years
17,096  
Reductions due to lapse of applicable statute of limitations ( 903 )
Balance, October 28, 2023
$ 187,415  

Additions for tax positions related to current year 5,793  
Reductions for tax positions related to prior years
( 27,499 )
Reductions due to lapse of applicable statute of limitations ( 3,013 )
Balance, November 2, 2024
$ 162,696  

Additions for tax positions related to current year 5,603  
Additions for tax positions related to prior years
38  
Reductions due to lapse of applicable statute of limitations ( 2,139 )
Balance, November 1, 2025
$ 166,198  

In fiscal 2025, the Company continued to engage in discussions with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of unrealized tax benefits, including accrued interest and penalties, could decrease by up to $ 150.0  million within the next twelve months due to the completion of federal tax audits, including any administrative appeals. The $ 150.0  million primarily relates to matters involving federal taxation of international income and cross-border transactions.
The Company has numerous audits ongoing throughout the world including: an IRS income tax audit for the fiscal years ended October 30, 2021 (fiscal 2021), November 2, 2019 (fiscal 2019) and November 3, 2018 (fiscal 2018); an IRS income tax audit for Maxim’s fiscal years ended June 27, 2015 through August 26, 2021; and various U.S. state and local audits and international audits, including Irish corporate tax audits for fiscal 2021. The Company’s U.S. federal income tax returns prior to fiscal 2018 are no longer subject to examination, except for the applicable Maxim fiscal years noted above.
During fiscal 2025, the Company received an assessment from the U.S. Internal Revenue Service (IRS) for fiscal 2018 and fiscal 2019, totaling approximately $ 267.0 million, excluding penalties and interest. The assessment pertains to transfer pricing arrangements between the Company and one of its wholly-owned foreign subsidiaries. The Company firmly disagrees with this assessment and maintains that its transfer pricing is appropriate. Consequently, the Company has not recorded any additional tax liability related to fiscal 2018 and fiscal 2019 in relation to this issue, nor to any other periods. The Company intends to vigorously defend its original tax return position and is currently preparing for an appeal with the IRS. Should the IRS ultimately prevail regarding its assessments for fiscal 2018 and fiscal 2019, such a resolution, along with any potential impact on subsequent fiscal years, could have a material adverse effect on the Company’s income tax expense and net earnings in future periods.

11.     Revolving Credit Facility
On April 11, 2025, the Company entered into a Fourth Amended and Restated Credit Agreement with Bank of America, N.A. as administrative agent and the other banks identified therein as lenders (the Revolving Credit Agreement). The Revolving Credit Agreement provides for a  five-year , unsecured, revolving credit facility in an aggregate principal amount not to exceed $ 3.0  billion (subject to certain terms and conditions).
Revolving loans under the Revolving Credit Agreement can be Term SOFR Loans or Base Rate Loans (each as defined in the Revolving Credit Agreement) at the Company’s option. Each Term SOFR Loan will bear interest at a rate per annum equal to the applicable adjusted term SOFR plus a margin based on the Company’s Debt Ratings (as defined in the Revolving Credit Agreement) from time to time of between 0.46 % and 0.90 %. As of November 1, 2025, the Company had no outstanding borrowings under this revolving credit facility but may borrow in the future and use the proceeds for repayment of existing indebtedness, stock repurchases, acquisitions, capital expenditures, working capital and other lawful corporate purposes.
In addition, the Company has agreed to pay a facility fee based on the Company’s Debt Ratings from time to time of between 0.040 % and 0.100 % multiplied by the actual daily amount of the Commitments (as defined in the Revolving Credit Agreement) in effect. The Revolving Credit Agreement includes a multicurrency borrowing feature for certain specified foreign
77

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

currencies. The Company will guarantee the obligations of each subsidiary that is named a Designated Borrower under the Revolving Credit Agreement.
The Revolving Credit Agreement contains customary representations and warranties, and affirmative and negative covenants and events of default applicable to the Company and its subsidiaries. As of November 1, 2025, the Company was in compliance with these covenants.

12.     Debt
On June 16, 2025, in an underwritten public offering, the Company issued $ 850.0 million aggregate principal amount of 4.250 % senior notes due June 15, 2028 (the 2028 Notes) and $ 650.0 million aggregate principal amount of 4.500 % senior notes due June 15, 2030 (the 2030 Notes), in each case with semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing December 15, 2025. The aggregate net proceeds of the offering were $ 1.5 billion, after discounts and issuance costs. Prior to May 15, 2028 with respect to the 2028 Notes and May 15, 2030 with respect to the 2030 Notes (the date that is one month prior to the maturity date of each series of notes), the Company may, at its option, redeem the 2028 or 2030 Notes, as applicable, in whole or in part, at any time and from time to time, at a redemption price equal to the greater of: (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2028 Notes matured on June 15, 2028 and the 2030 Notes matured on June 15, 2030) on a semi-annual basis at the applicable treasury rate plus 10 basis points less (b) interest accrued to the date of redemption, and (2) 100 % of the principal amount of the 2028 or 2030 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to the redemption date. On or after May 15, 2028 with respect to the 2028 Notes or May 15, 2030 with respect to the 2030 Notes, the Company may, at its option, redeem the 2028 or 2030 Notes, as applicable, in whole or in part, at any time and from time to time, at a redemption price equal to 100 % of the principal amount of the 2028 or 2030 Notes, as applicable, being redeemed plus accrued and unpaid interest thereon to the redemption date. The 2028 and 2030 Notes are unsecured and rank equally in right of payment with all of the Company’s other existing and future unsecured senior indebtedness.
The Company’s debt consisted of the following as of November 1, 2025 and November 2, 2024:

November 1, 2025 November 2, 2024

Fixed-rate 3.500 % Senior Notes due on December 5, 2026
$ 900,000   $ 900,000  

Fixed-rate 3.450 % Senior Notes due on June 15, 2027
440,212   440,212  
Fixed-rate 4.250 % Senior Notes due on June 15, 2028
850,000   —  
Fixed-rate 1.700 % Sustainability-Linked Senior Notes due on October 1, 2028
750,000   750,000  
Fixed-rate 4.500 % Senior Notes due on June 15, 2030
650,000   —  
Fixed-rate 2.100 % Senior Notes due on October 1, 2031 (1)
1,000,000   1,000,000  
Fixed-rate 4.250 % Senior Notes due on October 1, 2032
300,000   300,000  
Fixed-rate 5.050 % Senior Notes due on April 1, 2034
550,000   550,000  
Fixed-rate 4.500 % Senior Notes due on December 5, 2036
144,278   144,278  
Fixed-rate 2.800 % Senior Notes due on October 1, 2041
750,000   750,000  
Fixed-rate 5.300 % Senior Notes due on December 15, 2045
332,587   332,587  
Fixed-rate 2.950 % Senior Notes due on October 1, 2051
1,000,000   1,000,000  
Fixed-rate 5.300 % Senior Notes due on April 1, 2054
550,000   550,000  
   Total Long-Term Debt 8,217,077   6,717,077  

Fixed-rate 2.950 % Senior Notes due on April 1, 2025
—   400,000  
Commercial paper notes 446,639   547,738  

   Total Short-Term Debt
446,639   947,738  
Unamortized discounts, debt issuance costs and fair value adjustments ( 72,011 ) ( 83,128 )
Total Debt $ 8,591,705   $ 7,581,687  

_________________________________
(1) Includes fair value adjustment related to interest rate swap related to outstanding debt. See Note 2i, Derivative Instruments and Hedge Agreements, for more information.
78

ANALOG DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The indentures governing the Company’s senior notes contain covenants that, among other things, limit the Company’s ability to incur, create, assume or guarantee any debt for borrowed money secured by a lien upon a principal property; enter into certain sale and lease-back transactions with respect to a principal property; and consolidate with or merge into, or transfer or lease all or substantially all of its assets to, any other party. As of November 1, 2025, the Company was in compliance with all covenants under its debt agreements.

13.     Subsequent Events
On November 24, 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 December 22, 2025 to all shareholders of record at the close of business on December 8, 2025 and is expected to total approximately $ 484.8 million.
79

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Not applicable.

ITEM 9A.     CONTROLS AND PROCEDURES
(a)  Evaluation of Disclosure Controls and Procedures.  Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of Analog’s disclosure controls and procedures as of November 1, 2025. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of November 1, 2025, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
(b)  Management ’ s Report on Internal Control Over Financial Reporting.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:
• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Our management assessed the effectiveness of our internal control over financial reporting as of November 1, 2025. In making this assessment, the company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated 2013 Framework.
Based on this assessment, our management concluded that, as of November 1, 2025, our internal control over financial reporting is effective based on those criteria.
Our independent registered public accounting firm that audited the financial statements included in this annual report has issued an attestation report on our internal control over financial reporting. This report appears below.
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(c)  Attestation Report of the Registered Public Accounting Firm

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Analog Devices, Inc.

Opinion on Internal Control Over Financial Reporting
We have audited Analog Devices, Inc.’s internal control over financial reporting as of November 1, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Analog Devices, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of November 1, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of November 1, 2025 and November 2, 2024, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended November 1, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated November 25, 2025 expressed an unqualified opinion thereon.

Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Boston, Massachusetts
November 25, 2025
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(d)  Changes in Internal Controls over Financial Reporting.  No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act) occurred during the fiscal quarter ended November 1, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B.     OTHER INFORMATION
None of our officers or directors adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the fourth quarter of fiscal 2025.

ITEM 9C.     DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
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PART III