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Analog Devices
(NASDAQ:ADI)
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Rating:74Outperform
Price Target:
$422.00
▲(13.48% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial performance (high margins and robust free cash flow) and a very positive earnings call with strong forward guidance. Offsetting these strengths are elevated valuation (high P/E with modest yield) and a mixed near-term technical picture, with corporate events adding a smaller, mixed impact due to liquidity support but cybersecurity-related risk.
Positive Factors
Broad-Based End-Market Growth
Growth across industrial, automotive and communications reduces dependence on one market and supports durable adoption of ADI’s analog, power and signal-processing products in essential electronic systems.
Negative Factors
Cyclical Revenue and Earnings Exposure
ADI serves industrial, automotive and communications customers whose capital spending can fluctuate. Prior contraction shows that strong margins and growth can weaken materially during inventory corrections or economic downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-Based End-Market Growth
Growth across industrial, automotive and communications reduces dependence on one market and supports durable adoption of ADI’s analog, power and signal-processing products in essential electronic systems.
Read all positive factors
Analog Devices Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Shows how revenue is distributed across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
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The Fly
The FlyAnalog Devices (ADI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$179.41B
Dividend Yield1.12%
Average Volume (3M)4.64M
Price to Earnings (P/E)44.0
Beta (1Y)1.62
Revenue Growth33.65%
EPS Growth114.59%
CountryUS
Employees24,500
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)8.47
Shares Outstanding484,565,460
10 Day Avg. Volume3,570,393
30 Day Avg. Volume4,643,838
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)3.42
Price to Sales (P/S)10.50
P/FCF Ratio27.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$475.33Price Target Upside27.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)12.8
Revenue Forecast (FY)$15.05B
Analog Devices Business Overview & Revenue Model
Company Description
Analog Devices, Inc. (ADI) is a technology leader specializing in the conception, production, validation, and global marketing of integrated circuits (ICs), software solutions, and advanced subsystems. Their offerings leverage sophisticated analog...
How the Company Makes Money
ADI primarily makes money by selling semiconductor products and related solutions to original equipment manufacturers (OEMs) and other customers that integrate ADI chips into end equipment (e.g., factory automation and instrumentation systems, veh...
Analog Devices Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive performance and outlook: record revenue, margin and EPS, exceptional data center and industrial momentum, robust free cash flow and strategic capability expansion (notably in power and optics). Management acknowledged manageable near‑term tradeoffs (higher balance sheet inventory, acquisition cash outflow) and industry‑wide risks (inflation, capacity planning, macro/geopolitical uncertainty), but emphasized design wins, a broadened SAM and sustained multi‑year growth drivers. Overall the positives materially outweigh the listed challenges.Positive Updates
Record Quarterly Revenue
Revenue of $4.02 billion in Q3 — ADI's first $4 billion quarter; +11% sequentially and +40% year‑over‑year.
Negative Updates
Cash Balance Decline from Acquisition
Cash and short‑term investments decreased to $2.3 billion following the $1.5 billion all‑cash Empower acquisition, reducing near‑term liquidity relative to prior quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue of $4.02 billion in Q3 — ADI's first $4 billion quarter; +11% sequentially and +40% year‑over‑year.
Read all positive updates
Company Guidance
For fiscal Q4 the company guided revenue of $4.3 billion ± $0.1 billion (range $4.2–4.4B), gross margin to increase roughly 150 basis points to about 74%, operating margin at a midpoint of 52% ±100 bps (51–53%), non‑operating expenses of ~ $80 million, a tax rate of 12–14% and adjusted EPS of $3.86 ± $0.15 (range $3.71–$4.01). For context, Q3 revenue was $4.02B (up 11% sequentially, 40% YoY) with 72.5% gross margin, 50% operating margin, non‑op expense $69M, tax rate 13.1% and EPS $3.45; trailing‑12‑month operating cash flow and CapEx were $5.5B and $0.6B, free cash flow was a record $4.9B (36% of revenue), cash & short‑term investments $2.3B after a $1.5B acquisition, net leverage 0.9, inventory days 156 and channel weeks below the 6–7 week target, and fiscal ’26 CapEx is expected to be within the 4–6% of revenue long‑term model.Analog Devices Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.88B | 11.02B | 9.43B | 12.31B | 12.01B | 7.32B |
| Gross Profit | 9.13B | 6.77B | 5.38B | 7.88B | 7.80B | 4.86B |
| EBITDA | 6.53B | 5.03B | 4.20B | 6.17B | 5.60B | 2.59B |
| Net Income | 4.14B | 2.27B | 1.64B | 3.31B | 2.75B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 48.42B | 47.99B | 48.23B | 48.79B | 50.30B | 52.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.32B | 3.65B | 2.36B | 958.06M | 1.47B | 1.98B |
| Total Debt | 9.12B | 8.66B | 7.65B | 7.01B | 6.60B | 6.82B |
| Total Liabilities | 14.87B | 14.18B | 13.05B | 13.23B | 13.84B | 14.33B |
| Stockholders Equity | 33.55B | 33.82B | 35.18B | 35.57B | 36.47B | 37.99B |
Cash Flow | ||||||
| Free Cash Flow | 4.94B | 4.28B | 3.12B | 3.56B | 3.78B | 2.39B |
| Operating Cash Flow | 5.55B | 4.81B | 3.85B | 4.82B | 4.48B | 2.74B |
| Investing Cash Flow | -1.10B | -1.32B | -1.10B | -1.27B | -657.37M | 2.14B |
| Financing Cash Flow | -4.60B | -2.98B | -1.71B | -4.06B | -4.29B | -3.96B |
Analog Devices Technical Analysis
Negative
371.86
Price Trends
388.61
Negative
388.61
Negative
340.67
Positive
Market Momentum
-2.19
Positive
45.35
Neutral
9.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Negative. The current price of 371.86 is below the 20-day moving average (MA) of 376.00, below the 50-day MA of 388.61, and above the 200-day MA of 340.67, indicating a neutral trend. The MACD of -2.19 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 9.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADI.
Analog Devices Risk Analysis
Analog Devices disclosed 30 risk factors in its most recent earnings report. Analog Devices reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Analog Devices Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $56.23B | 19.15 | 28.05% | 1.51% | 8.77% | 39.24% | |
78 Outperform | $242.56B | 39.99 | 35.77% | 2.01% | 16.66% | 20.14% | |
74 Outperform | $179.41B | 44.05 | 12.26% | 1.12% | 33.65% | 114.59% | |
73 Outperform | $219.83B | 80.65 | 16.84% | 0.12% | 34.07% | ― | |
72 Outperform | $168.81B | 18.31 | 37.33% | 2.15% | 1.87% | -16.70% | |
71 Outperform | $393.97B | 42.19 | 40.44% | 0.36% | 7.77% | 38.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ADI
Analog Devices
373.09
124.23
49.92%
AMAT
Applied Materials
492.32
330.72
204.66%
MRVL
Marvell
237.04
164.20
225.41%
NXPI
NXP Semiconductors
225.56
-5.17
-2.24%
QCOM
Qualcomm
160.75
6.00
3.88%
TXN
Texas Instruments
264.36
63.50
31.62%
Analog Devices Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Analog Devices Evaluates New Cybersecurity Issue and Impact
Negative
Jul 29, 2026
On June 23, 2026, Analog Devices detected unauthorized access to certain company systems and immediately activated incident response protocols, engaging external cybersecurity experts and coordinating with law enforcement while keeping operations ...
Business Operations and StrategyPrivate Placements and Financing
Analog Devices Boosts Liquidity With New Credit Facility
Positive
Jul 2, 2026
On July 2, 2026, Analog Devices, Inc. entered into a new 364-day revolving credit agreement providing a $3.0 billion multicurrency credit facility with a syndicate of global banks led by Bank of America as administrative agent. The facility, which...
Business Operations and StrategyM&A Transactions
Analog Devices to Acquire Empower Semiconductor for AI Power
Positive
May 19, 2026
On May 19, 2026, Analog Devices announced a definitive agreement to acquire Empower Semiconductor, a Silicon Valley-based provider of integrated voltage regulators and silicon capacitor technology, in an all-cash deal valued at $1.5 billion. The t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.