ANALOG DEVICES INC 10-K

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. 52 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. 53 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 54 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 55 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. 56 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. 57 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 58 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 59 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 ) 60 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 61 ANALOG DEVICES, INC. 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. 62 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. 63 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. 64 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. 65 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. 66 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. 67 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 68 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 69 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.