Analog Devices (NASDAQ:ADI) Releases Earnings Results, Beats Estimates By $0.20 EPS

Analog Devices (NASDAQ:ADI) announced its earnings results on Wednesday. The semiconductor company reported $3.09 EPS for the quarter, topping analysts’ consensus estimates of $2.89 by $0.20, FiscalAI reports. The firm had revenue of $3.62 billion during the quarter, compared to analysts’ expectations of $3.51 billion. Analog Devices had a return on equity of 12.49% and a net margin of 23.02%.The company’s quarterly revenue was up 37.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.85 EPS. Analog Devices updated its Q3 2026 guidance to 3.150-3.450 EPS.

Here are the key takeaways from Analog Devices’ conference call:

• Analog Devices reported record Q2 revenue of $3.62 billion, with EPS of $3.09 and gross margin of 73%, all above the high end of guidance. Management said demand remains strong despite a challenging macro and geopolitical backdrop.
• Industrial was the standout, making up 50% of revenue and rising 20% sequentially and 56% year over year. ADI highlighted especially strong performance in aerospace and defense, ATE, ETM, automation, healthcare, and the broad market.
• Data center growth accelerated sharply, with communications revenue up 79% year over year and data center now more than 75% of that segment. Management said power and optical portfolios are both growing strongly and expects data center to remain the fastest-growing business sequentially.
• ADI raised its Q3 outlook to revenue of $3.9 billion plus or minus $100 million and EPS of $3.30 plus or minus $0.15, while guiding operating margin around 49%. The company expects industrial, automotive, and communications to grow above seasonality, while consumer should decline sequentially.
• Management reiterated confidence in longer-term growth drivers, including AI infrastructure, automation, energy storage, healthcare, and automotive content gains. ADI also said its planned Empower Semiconductor acquisition should strengthen its power platform and expand its AI-related addressable market.

Analog Devices Trading Down 3.9%

Shares of NASDAQ ADI opened at $398.05 on Thursday. The company has a quick ratio of 1.35, a current ratio of 1.76 and a debt-to-equity ratio of 0.21. The business has a fifty day simple moving average of $358.76 and a two-hundred day simple moving average of $314.16. The firm has a market cap of $194.33 billion, a PE ratio of 72.77, a price-to-earnings-growth ratio of 1.67 and a beta of 1.19. Analog Devices has a twelve month low of $206.00 and a twelve month high of $435.72.

Analog Devices Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be given a dividend of $1.10 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. Analog Devices’s payout ratio is 80.44%.

More Analog Devices News

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: Analog Devices posted record fiscal Q2 results, with EPS of $3.09 beating estimates and revenue of $3.62 billion topping forecasts, showing broad-based year-over-year growth. Analog Devices Reports Record Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: The company also issued Q3 guidance above Wall Street estimates, signaling continued momentum in demand for its power-management chips and sensors amid the AI boom. Chipmaker Analog Devices forecasts third-quarter revenue above estimates amid AI boom
• Positive Sentiment: ADI said it will buy Empower Semiconductor for $1.5 billion in cash, expanding its AI data-center power portfolio and targeting a key bottleneck in next-generation AI infrastructure. Analog Devices to buy Empower Semiconductor for $1.5 billion to boost AI power portfolio
• Neutral Sentiment: Analysts responded positively, with Needham raising its target to $440 and reiterating a bullish stance, suggesting the earnings beat and AI strategy may support the long-term outlook. Analog Devices Wins Higher $440 Target on Strong Beat, Upgraded Outlook, and Empower Semiconductor AI Deal
• Negative Sentiment: Despite the strong numbers, the stock is getting hit by a likely sell-the-news reaction after a large year-to-date advance, and some investors may be weighing integration risk and the cash outlay from the Empower deal. Why is Analog Devices stock falling despite strong earnings and AI deal?

Insider Activity

In other Analog Devices news, CEO Vincent Roche sold 10,000 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $397.91, for a total transaction of $3,979,100.00. Following the completion of the transaction, the chief executive officer owned 187,538 shares of the company’s stock, valued at $74,623,245.58. This represents a 5.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michael Sondel sold 4,199 shares of the stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $361.02, for a total value of $1,515,922.98. Following the transaction, the chief accounting officer directly owned 14,740 shares of the company’s stock, valued at $5,321,434.80. The trade was a 22.17% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 24,199 shares of company stock worth $8,676,423. Company insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Analog Devices

A number of hedge funds have recently made changes to their positions in ADI. Brighton Jones LLC increased its stake in Analog Devices by 39.5% during the fourth quarter. Brighton Jones LLC now owns 1,867 shares of the semiconductor company’s stock worth $397,000 after acquiring an additional 529 shares during the last quarter. Pinnacle Financial Partners Inc. increased its stake in Analog Devices by 16.8% during the third quarter. Pinnacle Financial Partners Inc. now owns 19,574 shares of the semiconductor company’s stock worth $4,809,000 after acquiring an additional 2,815 shares during the last quarter. Sivia Capital Partners LLC increased its stake in Analog Devices by 36.0% during the second quarter. Sivia Capital Partners LLC now owns 1,752 shares of the semiconductor company’s stock worth $417,000 after acquiring an additional 464 shares during the last quarter. Wealth Watch Advisors INC increased its stake in Analog Devices by 33.0% during the fourth quarter. Wealth Watch Advisors INC now owns 504 shares of the semiconductor company’s stock worth $137,000 after acquiring an additional 125 shares during the last quarter. Finally, Opal Capital LLC acquired a new stake in Analog Devices during the fourth quarter worth $183,000. Institutional investors and hedge funds own 86.81% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on ADI shares. Robert W. Baird set a $365.00 target price on Analog Devices in a report on Thursday, February 19th. Bank of America lifted their target price on Analog Devices from $400.00 to $425.00 and gave the stock a “buy” rating in a report on Monday, April 13th. Morgan Stanley reiterated an “overweight” rating and issued a $373.00 target price on shares of Analog Devices in a report on Thursday, February 19th. Needham & Company LLC upgraded Analog Devices from a “hold” rating to a “buy” rating and set a $400.00 price objective for the company in a report on Thursday, February 19th. Finally, Cantor Fitzgerald boosted their price objective on Analog Devices from $400.00 to $510.00 and gave the company an “overweight” rating in a report on Wednesday, May 13th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $388.42.

Analog Devices Company Profile

Analog Devices, Inc (NASDAQ: ADI) is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.

The company’s product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.