Analog Devices reported a 19% year-over-year increase in its consumer segment revenues for fiscal 2025, propelled by robust demand in premium audio components, hearables and wearable devices. The company cited a 25% uptick in unit shipments of its custom digital-to-analog converters for high-fidelity headphones and a 30% increase in sensor revenue from health-monitoring wearables. This outperformance helped the overall consumer business contribute roughly $1.1 billion to quarterly revenues, compared with $925 million a year earlier.

Growth in gaming peripherals and immersive technologies boosted sales of ADI’s high-performance power management ICs and ultra-low-noise amplifiers by 22% year-over-year. The company has secured design wins with three leading AR/VR headset makers, targeting more than $200 million in incremental revenue over the next two years. Engineers are also integrating ADI’s signal-processing platforms into edge-AI modules for next-generation consumer electronics, a trend ADI expects will drive mid-teens percentage growth in its industrial and consumer end markets through fiscal 2027.

To support accelerating product demand, ADI plans to expand its wafer fabrication capacity in Limerick, Ireland, with a $500 million investment scheduled for completion in late 2026. The company also increased R&D spending by 12% year-over-year, allocating $800 million toward next-generation mixed-signal and power management innovations. Management reiterated its long-term gross margin target of 65%, forecasting operating margins to improve by 50 basis points annually as scale and product mix enhancements take hold.