Analog Devices' (ADI) fiscal Q3 results and Q4 outlook topped Street estimates, supported by cyclical recovery and growth across all segments and regions, Oppenheimer said.

The company recorded strong industrial segment growth as aerospace and defense demand outpaced supply. "No signs of tariff-related pull-ins as channel remains lean," analysts wrote in a Wednesday research note.

Oppenheimer said it modeled Q4 auto revenue down 10% sequentially as management expects an unwind from expiring electric vehicle tax credits and tariffs.

Gross margin slipped 100 basis points in Q3 to 69.7% due to mix and a one-time event at a European fab, but the brokerage expects margins to rebound above 70% in Q4 on better utilization and as industrial approaches 50% of mix.

"We view ADI as a prime beneficiary of cyclical rebound in core auto/industrial," according to the note.

The brokerage raised its 2025 and 2026 EPS forecasts to $8.31 and $9.77, respectively, from $7.98 and $9.27 previously.

Oppenheimer reiterated its outperform rating on the stock, with a $265 price target.

Shares of Analog Devices were up 1.6% in recent Thursday trading.

Price: 248.85, Change: +3.98, Percent Change: +1.62