Analog Devices (NASDAQ:ADI) Announces Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Analog Devices (NASDAQ:ADI) issued its earnings results on Wednesday. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.11, Zacks reports. The business had revenue of $4.02 billion for the quarter, compared to analyst estimates of $3.91 billion. Analog Devices had a net margin of 26.01% and a return on equity of 14.37%. Analog Devices’s revenue was up 39.2% on a year-over-year basis. During the same period in the prior year, the firm earned $2.05 earnings per share. Analog Devices updated its Q4 2026 guidance to 3.710-4.010 EPS.

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

• Record third-quarter results exceeded guidance, with revenue of $4.02 billion, up 40% year over year, and adjusted EPS of $3.45, up 68%. Growth was broad-based, led by industrial, automotive, and communications.
• Data center revenue more than doubled year over year in both optical and power, while ADI said its data center and energy serviceable addressable market has more than doubled from its estimate a year ago. Management expects strong double-digit growth in these markets through at least 2030.
• Fourth-quarter guidance calls for revenue of $4.3 billion plus or minus $100 million and adjusted EPS of $3.86 plus or minus $0.15. Operating margin is expected to reach 52%, supported by favorable mix, higher utilization, and previously announced pricing actions.
• Management expressed confidence in fiscal 2027 growth, citing AI infrastructure, aerospace and defense, cyclical recovery, content gains, share gains, and continued Maxim synergies expected to exceed $1 billion in 2027.
• ADI is building inventory and expanding internal and external manufacturing capacity to support accelerating demand, but executives noted potential inflation, geopolitical volatility, macroeconomic risks, and a possible slowdown in AI capital spending.

Analog Devices Trading Down 0.9%

ADI opened at $373.26 on Thursday. Analog Devices has a fifty-two week low of $223.47 and a fifty-two week high of $445.91. The firm has a market capitalization of $181.81 billion, a PE ratio of 55.46, a P/E/G ratio of 0.98 and a beta of 1.20. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.75 and a quick ratio of 1.34. The company’s 50-day moving average is $389.98 and its 200 day moving average is $370.68.

Analog Devices Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Tuesday, September 1st. Analog Devices’s dividend payout ratio is currently 65.38%.

Wall Street Analyst Weigh In

ADI has been the topic of several research reports. Barclays upped their price objective on shares of Analog Devices from $430.00 to $450.00 and gave the company an “overweight” rating in a report on Thursday, May 21st. Wall Street Zen raised Analog Devices from a “hold” rating to a “buy” rating in a research report on Sunday, May 24th. Weiss Ratings downgraded Analog Devices from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 28th. Wells Fargo & Company increased their price target on Analog Devices from $470.00 to $515.00 and gave the stock an “overweight” rating in a report on Thursday, May 21st. Finally, Citigroup raised their price objective on Analog Devices from $400.00 to $460.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $443.24.

Key Headlines Impacting Analog Devices

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

• Positive Sentiment: Strong quarterly beat: ADI reported adjusted EPS of $3.45, topping the $3.34 consensus, while revenue rose 39.2% year over year to a record $4.02 billion, ahead of expectations near $3.91 billion. Analog Devices Reports Record Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: AI and data-center momentum: Management highlighted more than 100% growth in data-center revenue, alongside strong industrial demand. Industrial revenue increased 53% and communications revenue rose 84%, helping drive record margins and profitability. Analog Devices’ quarterly forecast tops estimates on AI-fueled chip demand
• Positive Sentiment: Upbeat fourth-quarter guidance: ADI forecast revenue of $4.2 billion to $4.4 billion and EPS of $3.71 to $4.01, exceeding consensus estimates of approximately $4.1 billion and $3.53, respectively. The outlook suggests momentum may extend into 2027. Analog Devices Guides for Above-Consensus Fourth Quarter
• Positive Sentiment: Analyst support and shareholder returns: TD Cowen reaffirmed a Buy rating with a $460 price target, while Goldman Sachs maintained its Buy rating and $450 target. ADI also declared a quarterly dividend of $1.10 per share, payable September 15.
• Neutral Sentiment: ADI’s valuation remains elevated at roughly 55 times earnings, which could leave the stock sensitive to any slowdown in AI spending, margin expansion, or semiconductor demand.
• Negative Sentiment: Reported insider-trading data showed 81 open-market insider sales and no purchases during the past six months. While such transactions may reflect diversification or scheduled selling, the pattern could temper bullish sentiment.

Insider Buying and Selling

In other news, SVP Martin Cotter sold 17,594 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $418.00, for a total value of $7,354,292.00. Following the transaction, the senior vice president owned 56,332 shares in the company, valued at $23,546,776. This trade represents a 23.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Karen Golz sold 1,000 shares of Analog Devices stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $389.83, for a total value of $389,830.00. Following the transaction, the director directly owned 11,019 shares in the company, valued at approximately $4,295,536.77. The trade was a 8.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 105,274 shares of company stock worth $42,247,986 over the last 90 days. Company insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On Analog Devices

A number of institutional investors and hedge funds have recently bought and sold shares of ADI. Sunbelt Securities Inc. lifted its stake in Analog Devices by 2.0% during the 4th quarter. Sunbelt Securities Inc. now owns 3,891 shares of the semiconductor company’s stock valued at $1,055,000 after acquiring an additional 76 shares in the last quarter. Compound Planning Inc. grew its stake in shares of Analog Devices by 25.4% in the 4th quarter. Compound Planning Inc. now owns 4,928 shares of the semiconductor company’s stock worth $1,337,000 after acquiring an additional 997 shares in the last quarter. Axxcess Wealth Management LLC grew its stake in shares of Analog Devices by 1,409.7% in the 4th quarter. Axxcess Wealth Management LLC now owns 14,493 shares of the semiconductor company’s stock worth $3,930,000 after acquiring an additional 13,533 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Analog Devices by 22.8% in the fourth quarter. Corient Private Wealth LLC now owns 526,110 shares of the semiconductor company’s stock valued at $142,681,000 after purchasing an additional 97,535 shares during the last quarter. Finally, Blue Sparrow LLC DE purchased a new stake in shares of Analog Devices in the fourth quarter valued at about $16,272,000. 86.81% of the stock is owned by hedge funds and other institutional investors.

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.