ANALOG DEVICES (ADI) Company Report

Analog Devices reported nine consecutive quarters of above-seasonal performance, driven by idiosyncratic growth in ATE (+40% Y/Y in 2025), data center (+50% Y/Y), aerospace & defense, record auto content gains, and diversified consumer segments.
The industrial business is entering a broad-based upcycle: 90% of usual upcycle parts are moving, book-to-bills >1 across all submarkets and geographies, and channel inventories at a lean six-week level with normalized lead times and strong turns.
In communications, two-thirds of revenue is data center split equally between power and optical: shipping 1.6 T optical modules while developing 3.2 T, and rolling out vertical power solutions with 30% lower power loss to key hyperscaler customers.
Executing Q1 price increases to offset input cost inflation; gross margin at 71% with a path to 74% driven by mix and pricing; Q2 operating margin guidance up 200 bps; returning 100% of cash via dividends (11% increase) and buybacks, reducing shares by 10% since Maxim.
On track to capture $1 billion of revenue synergies from the Maxim acquisition by 2027; continuing tuck-in M&A in digital, software, and AI while maintaining balance sheet flexibility.

6 hours ago

Transcript

Analog Devices reports strong 9-quarter performance and outlines growth drivers

ADI

Guidance Update

M&A

Share Buyback

Strong idiosyncratic drivers: ATE business grew over 40% YoY in 2025, aerospace & defense markets boosted by rising government spend, data center grew 50% YoY in the last three quarters of 2025, automotive hit back-to-back record years, and consumer end-markets have grown for 6+ consecutive quarters.
Broad industrial recovery: book-to-bill ratios exceeded 1.0 across all industrial sub-markets and geographies entering Q2, after two years of channel destocking and inventory normalization.
Heavy R&D investment at 16% of revenue, targeting data center power and optical: shipping 1.6 Tb/s optical modules and developing 3.2 Tb/s, plus deploying vertical power delivery (VPD) with one major customer.
Path to 74% gross margin (currently 71%) supported by Q1 price increases and favorable mix; operating expenses to grow at roughly 50% of revenue growth in 2026, with Q2 operating margin up 200 bps.
Maxim merger synergies of $1 billion on track by 2027; maintains 100% cash-return policy with 40–60% dividends (11% increase) and share buybacks—reducing share count by 10% since acquisition.

7 hours ago

Transcript

Analog Devices outlines growth drivers and strategic priorities at Morgan Stanley TMT Conference 2026

ADI

Revenue Acceleration/Inflection

M&A

Dividends

Nine consecutive quarters of above-seasonal performance driven by idiosyncratic strength in ATE (>40% YoY growth in 2025), aerospace & defense, data center (50% YoY in late 2025), automotive, and diversified consumer segments.
Broad-based industrial cyclical recovery with over 90% of expected parts moving, normalized lead times, lean channel inventories, and strong turns volumes signaling sustainable upcycle momentum.
Robust data center momentum, underpinned by 16% of revenue invested in R&D, shipping 1.6 Tb optical modules and vertical power solutions with ~30% lower losses, while developing 3.2 Tb optical solutions.
Margin expansion and disciplined cost management with gross margins at 71% targeting 74% via favorable mix and price increases; operating expenses planned to grow at ~50% of revenue growth in 2026.
Strategic execution on Maxim synergies and capital returns, on track for $1 billion of synergies by 2027; maintaining 100% cash return policy, 11% dividend increase, and 10% reduction in share count since Maxim merger.

7 hours ago

Transcript

Analog Devices reports Q1 2026 results

ADI

Earnings

Guidance Update

Dividends

First quarter revenue was $3.16 billion, up 3% sequentially and 30% year-over-year; EPS was $2.46, up 9% sequentially and 51% year-over-year.
Industrial now represents 47% of revenue, growing 5% sequentially and 38% year-over-year; communications +20% seq/+63% yoy; automotive −8% seq/+8% yoy; consumer +2% seq/+27% yoy.
Second quarter outlook: revenue of $3.5 billion ± $0.1 billion and operating margin of 47.5% ± 100 bps.
Trailing-12-month free cash flow was $4.6 billion (39% of revenue); net leverage of 0.8x; raised quarterly dividend by 11% to $1.10 and maintain target of returning 100% of FCF.

Feb 18, 2026, 3:00 PM

Transcript

Analog Devices reports Q1 FY2026 results

ADI

Earnings

Guidance Update

Dividends

Revenue of $3.16 B, up 3% sequentially and 30% year-over-year; EPS of $2.46, up 9% sequentially and 51% year-over-year
Gross margin of 71.2% (+140 bps sequentially, +240 bps YoY) and operating margin of 45.5%, above the high end of guidance
Industrial segment (47% of revenue) grew 5% sequentially and 38% YoY; Communications +20% sequentially/63% YoY; Automotive and Consumer also delivered double-digit YoY growth
Trailing-12-month free cash flow of $4.6 B (39% of revenue); announced 11% dividend increase to $1.10 per quarter
Q2 guidance: Revenue of $3.5 B ± $0.1 B; Operating margin of 47.5% ± 100 bps

Feb 18, 2026, 3:00 PM

Transcript

Analog Devices reports Q1 2026 results

ADI

Earnings

Guidance Update

Dividends

Analog Devices posted Q1 2026 revenue of $3.16 billion, up 3% sequentially and 30% year-over-year; gross margin was 71.2%, operating margin 45.5%, and EPS $2.46.
By end market, industrial made up 47% of sales (+38% YoY), communications 15% (+63% YoY), automotive 25% (+8% YoY), and consumer 13% (+27% YoY), with strength in ATE and data center optical and power.
Trailing-12-month free cash flow reached $4.6 billion (39% of revenue), net leverage was 0.8×, and the quarterly dividend was raised 11% to $1.10.
Q2 guidance targets $3.5 billion ± $100 million in revenue and 47.5% ± 100 bp in operating margin, reflecting about 11% sequential growth driven by industrial (+20% seq) and communications (high-single-digit seq).

Feb 18, 2026, 3:00 PM

Transcript

Analog Devices reports Q1 2026 results

ADI

Earnings

Dividends

Guidance Update

Revenue of $3.16 billion, up 30% year-over-year, led by strength in Industrial and Communications end markets.
Operating income of $997 million (31.5% margin) and diluted EPS of $1.69, increasing 117% year-over-year.
Trailing twelve-month free cash flow of $4.6 billion (39% of revenue) and $1.0 billion returned to shareholders in Q1 via dividends and share repurchases.
Quarterly dividend raised 11% to $1.10, marking 22 consecutive years of increases; payable March 17, 2026.
Q2 guidance: revenue of $3.5 billion ± $100 million, reported operating margin ~36.4%, and EPS of $2.19 ± $0.15.

Feb 18, 2026, 12:02 PM

8-K

Analog Devices raises quarterly dividend by 11%

ADI

Dividends

Share Buyback

The Board of Directors approved an 11% increase in the quarterly dividend to $1.10 per share, payable March 17, 2026 to shareholders of record March 3, 2026.
This marks the 22nd consecutive year of dividend increases and follows 29 consecutive years of positive free cash flow.
Since launching its capital return program 22 years ago, ADI has returned over $32 billion to shareholders via dividends and share repurchases and commits to return 100% of free cash flow over the long term.

Feb 17, 2026, 10:30 PM

Press Release

Analog Devices highlights strong segment performance and AI-driven growth at UBS conference

ADI

Revenue Acceleration/Inflection

M&A

ADI reported a broad-based recovery across industrial end-markets, exiting Q4 with a book-to-bill above one in industrial and guiding above-seasonal growth for the January quarter.
China delivered a record revenue year, with automotive achieving its second record and representing about one-third of ADI’s global auto revenue; other China end-markets remain below prior peaks.
Maxim acquisition has generated hundreds of millions in revenue synergies in 2025, with ADI on track to achieve its $1 billion synergy target by 2027, potentially earlier.
The data center business, split evenly between optical and power, has grown 50% year-over-year for three consecutive quarters, driven by AI infrastructure demand.
ADI’s pricing discipline and premium ASPs on newer products have preserved margins, with potential for gross margins to reach around 71% under high-growth scenarios.

Dec 2, 2025, 5:15 PM

Transcript

ADI outlines growth drivers at UBS 2025 Global Tech and AI Conference

ADI

Guidance Update

M&A

Revenue Acceleration/Inflection

ADI announced above-seasonal guidance for its January quarter, citing a broad-based recovery with industrial book-to-bill above 1 and tailwinds from AI-driven test demand and rising aerospace and defense spending.
Two-thirds of ADI’s communications revenue is in wireline/data centers, which has grown significantly amid the AI infrastructure boom; the test business reached $800 M, while aerospace and defense exceeded $1 B, driven by high-performance modules.
China sales comprised 26% of revenue, grew 26% in fiscal 2025—outpacing total revenue—and China auto now represents ~33% of ADI’s global auto business, fueled by design wins and higher content per vehicle.
The Maxim acquisition delivered hundreds of millions in revenue synergies in 2025, keeping the $1 B synergy target by 2027 on track; future M&A will focus on software, digital, and AI capabilities to complement ADI’s analog portfolio.

Dec 2, 2025, 5:15 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for ANALOG DEVICES.

Q1 2026

Feb 18, 2026

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Q4 2025

Nov 25, 2025

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Q3 2025

Aug 20, 2025

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ANALOG DEVICES (ADI)

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