Analog Devices (NASDAQ:ADI) Issues Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Analog Devices (NASDAQ:ADI) released its quarterly earnings results on Wednesday. The semiconductor company reported $3.09 EPS for the quarter, beating the consensus estimate of $2.89 by $0.20, FiscalAI reports. The company had revenue of $3.62 billion for the quarter, compared to analyst estimates of $3.51 billion. Analog Devices had a net margin of 26.01% and a return on equity of 14.37%. The firm’s revenue was up 37.2% on a year-over-year basis. During the same quarter last year, the business earned $1.85 earnings per share. 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 Stock Down 3.5%

Shares of NASDAQ ADI opened at $384.21 on Friday. The company’s 50-day simple moving average is $360.07 and its 200-day simple moving average is $315.22. Analog Devices has a 52-week low of $206.00 and a 52-week high of $435.72. The firm has a market cap of $187.57 billion, a price-to-earnings ratio of 57.09, a price-to-earnings-growth ratio of 1.60 and a beta of 1.19. The company has a quick ratio of 1.35, a current ratio of 1.75 and a debt-to-equity ratio of 0.21.

Analog Devices Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be given a $1.10 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $4.40 annualized dividend and a dividend yield of 1.1%. Analog Devices’s dividend payout ratio (DPR) is 80.44%.

Key Analog Devices News

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

• Positive Sentiment: ADI reported record fiscal Q2 results, with EPS of $3.09 and revenue of $3.62 billion, both above estimates, while revenue rose 37.2% year over year and management issued Q3 guidance that also topped consensus. Analog Devices Reports Record Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: Analysts raised price targets after the earnings beat, with firms pointing to stronger-than-expected execution and improving outlook for ADI’s analog and AI-related businesses. Analog Devices Analysts Boost Their Forecasts Following Upbeat Q2 Results
• Positive Sentiment: ADI announced a $1.5 billion all-cash acquisition of Empower Semiconductor, aimed at strengthening its AI data-center power-management portfolio and positioning the company for higher-density power delivery demand. Analog Devices to Participate in the Bank of America Global Technology Conference
• Neutral Sentiment: ADI will present at the Bank of America Global Technology Conference on June 2, which should keep investors focused on management’s commentary about demand trends, integration plans, and AI opportunities. Analog Devices to Participate in the Bank of America Global Technology Conference
• Negative Sentiment: Despite the strong report, the stock initially fell as investors appeared to “sell the news” after a large run-up and weighed near-term acquisition and integration risk from the Empower deal. Why is Analog Devices stock falling despite strong earnings and AI deal?

Insider Activity

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

Hedge Funds Weigh In On Analog Devices

Several hedge funds and other institutional investors have recently modified their holdings of ADI. Bank of America Corp DE lifted its stake in shares of Analog Devices by 42.8% in the fourth quarter. Bank of America Corp DE now owns 9,715,095 shares of the semiconductor company’s stock worth $2,634,734,000 after buying an additional 2,912,666 shares in the last quarter. Amundi lifted its stake in shares of Analog Devices by 44.8% in the third quarter. Amundi now owns 6,215,129 shares of the semiconductor company’s stock worth $1,507,740,000 after buying an additional 1,922,302 shares in the last quarter. Raymond James Financial Inc. lifted its stake in shares of Analog Devices by 29.2% in the third quarter. Raymond James Financial Inc. now owns 4,829,931 shares of the semiconductor company’s stock worth $1,186,714,000 after buying an additional 1,091,004 shares in the last quarter. Rafferty Asset Management LLC lifted its stake in shares of Analog Devices by 47.5% in the second quarter. Rafferty Asset Management LLC now owns 1,802,338 shares of the semiconductor company’s stock worth $428,992,000 after buying an additional 580,546 shares in the last quarter. Finally, Lansdowne Partners UK LLP lifted its stake in shares of Analog Devices by 319.3% in the fourth quarter. Lansdowne Partners UK LLP now owns 634,754 shares of the semiconductor company’s stock worth $172,145,000 after buying an additional 483,353 shares in the last quarter. 86.81% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently commented on ADI shares. JPMorgan Chase & Co. raised their price target on shares of Analog Devices from $320.00 to $400.00 and gave the company an “overweight” rating in a research report on Thursday, February 19th. Barclays lifted their target price on shares of Analog Devices from $430.00 to $450.00 and gave the company an “overweight” rating in a research report on Thursday. Piper Sandler lifted their target price on shares of Analog Devices from $250.00 to $360.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. Needham & Company LLC lifted their target price on shares of Analog Devices from $400.00 to $440.00 and gave the company a “buy” rating in a research report on Thursday. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $450.00 target price on shares of Analog Devices in a research report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $423.79.

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.