Analog Devices (NASDAQ:ADI) saw its shares surge over 6% intra-day today after delivering better-than-expected first-quarter earnings and issuing an optimistic outlook for the second quarter.

For Q1, the semiconductor company posted earnings per share of $1.63, surpassing analyst expectations of $1.54. Revenue fell 4% year-over-year to $2.42 billion, but still came in ahead of the $2.36 billion consensus forecast.

Margins also exceeded estimates, with an adjusted gross margin of 68.8%, compared to the 67.8% projection, while its adjusted operating margin reached 40.5%, slightly above the expected 40.2%.

Management highlighted an improving demand cycle and strong execution across key business segments, positioning Analog Devices for a gradual recovery despite macroeconomic and geopolitical challenges.

For Q2 2025, the company forecasts earnings per share of $1.68, plus or minus $0.10, slightly exceeding the $1.66 analyst consensus. Revenue guidance of $2.5 billion, plus or minus $100 million, also landed above the $2.457 billion Wall Street estimate.