Analog Devices: Q3 Earnings Forecast and Market Outlook (2025)

Analog Devices is attracting significant attention ahead of its forecasted Q3 earnings report, with 10 analysts set to release updated figures on Tuesday, 25 November 2025. With strong expectations for earnings growth, the stock could be primed for a potential bullish rally—although valuation concerns may limit upside momentum.

Forecasted Q3 Earnings: Strong EPS Growth Expected

Analog Devices is projected to deliver a 32.93% year-on-year increase in earnings per share (EPS), rising from $1.67 in 2024 to an estimated $2.22 in 2025.
Despite this robust growth, the share price has already surged 89.94%, moving from $83.97 in 2024 to $159.49 in 2025. This steep price appreciation raises the possibility that the stock is becoming overvalued, which could mean that some of the anticipated bullish reaction to earnings has already been priced in.

Technical Analysis: Signs of Consolidation

From a technical perspective, Analog Devices appears to be consolidating, with several indicators signalling reduced momentum:

• Price positioned mid-range between Bollinger Bands and key Fibonacci levels
• MACD showing very small histograms, indicating weak momentum
• Low trading volume, suggesting limited conviction
• RSI at 53, reflecting a neutral market stance

Overall, the technical setup reflects indecision, rather than a clear bullish or bearish trend.

Fundamental Analysis: Strong Growth but Valuation Risks

Fundamentally, Analog Devices shows both positive and negative signals:

• Current P/E ratio: 60.74, suggesting the stock is trading at a premium
• Forward P/E ratio: 25.41, implying a more reasonable future valuation

However, the sharp drop between the current and forward P/E ratios could signal potential volatility, increasing risk for investors. This volatility generates broad price target ranges:

• High target: $570.68 (a 257.82% upside)
• Low target: $336.65 (a 111.08% downside)

These figures appear overly optimistic relative to analyst estimates. Current consensus forecasts a price target of $281.11, representing only a 21% upside—well below what P/E-derived valuations might suggest. This reinforces concerns that the stock may already be overextended.

Outlook for Traders and Investors

With strong earnings forecasts and improving fundamentals, Analog Devices does have bullish potential. However, concerns about overvaluation and elevated volatility may dampen the strength of any rally following the Q3 report.

The stock may be too risky for conservative investors, given the wide valuation projections and the current premium price. Still, the combination of a solid analyst price target and expected EPS growth suggests that Analog Devices maintains an overall bullish outlook, albeit with caution warranted.