Analog Devices, Inc. (ADI)
NASDAQ:ADI
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Analog Devices
(NASDAQ:ADI)
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Rating:81Outperform
Price Target:
$479.00
▲(28.95% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by strong financial performance (high margins and robust free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). A strong earnings call and upbeat guidance further support the outlook, while the elevated P/E and modest dividend yield are the main offsets.
Positive Factors
Margin Strength
Sustained high gross and net margins reflect durable product differentiation in analog and power solutions, allowing ADI to convert revenue into cash. Strong margins support reinvestment, pricing flexibility and buffer cyclical downturns, underpinning long-term earnings quality and competitive resilience.
Negative Factors
Cyclical Earnings Volatility
Semiconductor end-market cyclicality produces uneven revenue and profit across cycles, constraining consistency of returns. Moderate ROE implies capital intensity limits uplift from margins; planning for capacity and R&D must balance cycles, risking earnings swings and slower equity-return profile over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Strength
Sustained high gross and net margins reflect durable product differentiation in analog and power solutions, allowing ADI to convert revenue into cash. Strong margins support reinvestment, pricing flexibility and buffer cyclical downturns, underpinning long-term earnings quality and competitive resilience.
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.
Data provided by:
The Fly
The FlyAnalog Devices (ADI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.33B
Dividend Yield1.43%
Average Volume (3M)3.49M
Price to Earnings (P/E)41.2
Beta (1Y)1.57
Revenue Growth29.75%
EPS Growth83.33%
CountryUS
Employees24,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)6.76
Shares Outstanding487,087,040
10 Day Avg. Volume4,065,234
30 Day Avg. Volume3,492,443
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)3.42
Price to Sales (P/S)10.50
P/FCF Ratio27.05
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue15.21
Enterprise Value/Gross Profit23.59
Enterprise Value/Ebitda31.29
Forecast
1Y Price Target
$459.56Price Target Upside23.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)12.18
Revenue Forecast (FY)$14.61B
Analog Devices Business Overview & Revenue Model
Company Description
Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company provides data converter products, which ...
How the Company Makes Money
ADI primarily makes money by selling semiconductor products (integrated circuits and related components) to electronics manufacturers and OEMs through direct sales and distribution channels. Its core revenue streams come from broad product categor...
Analog Devices Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call communicated strong, broad-based demand and record financial results (revenue, EPS, margins) driven by industrial and data center momentum, robust cash generation and strategic moves (Empower) to capture AI-related power opportunities. Management acknowledged near-term risks including macro/geopolitical tensions, supply-chain choke points, elevated inventory days, a modest near-term gross margin headwind (~50 bps) and that the Empower acquisition will not be materially accretive in the immediate quarter. On balance the positives — strong growth, margin expansion, cash flow and capacity resilience — substantially outweigh the cautions.Positive Updates
Record Revenue and Earnings
Revenue of $3.62B (record) — +15% sequential, +37% year-over-year. Adjusted EPS $3.09 (record) — +26% sequential, +67% year-over-year.
Negative Updates
Macro and Geopolitical Risks
Management noted heightened geopolitical tensions and ongoing macro uncertainty; supply-chain choke points (notably memory) could constrain some customers, particularly in consumer markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Earnings
Revenue of $3.62B (record) — +15% sequential, +37% year-over-year. Adjusted EPS $3.09 (record) — +26% sequential, +67% year-over-year.
Read all positive updates
Company Guidance
Management guided third-quarter fiscal 2026 revenue of $3.9 billion ± $100 million, operating margin at a 49% midpoint ±100 basis points, a tax rate of 12%–14% and adjusted EPS of $3.30 ± $0.15, and they expect Q3 gross margin to be roughly 50 basis points lower than Q2’s 73% (reflecting the absence of a prior one‑time channel repricing benefit) with channel inventory weeks expected to remain flat in the 6–7‑week range. They reiterated fiscal‑year CapEx in the 4%–6% of revenue long‑term model; at quarter end cash and short‑term investments were $3.4 billion, net leverage ~0.8, days of inventory 168, trailing‑12‑month operating cash flow $5.1 billion, TTM CapEx $0.5 billion, free cash flow $4.6 billion (36% of revenue) and $5.0 billion returned to shareholders over the past 12 months.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 | 12.74B | 11.02B | 9.43B | 12.31B | 12.01B | 7.32B |
| Gross Profit | 8.22B | 6.77B | 5.38B | 7.88B | 7.80B | 4.86B |
| EBITDA | 6.19B | 5.03B | 4.20B | 6.17B | 5.60B | 2.59B |
| Net Income | 3.31B | 2.27B | 1.64B | 3.31B | 2.75B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 47.95B | 47.99B | 48.23B | 48.79B | 50.30B | 52.32B |
| Cash, Cash Equivalents and Short-Term Investments | 3.44B | 3.65B | 2.36B | 958.06M | 1.47B | 1.98B |
| Total Debt | 8.68B | 8.66B | 7.65B | 7.01B | 6.60B | 6.82B |
| Total Liabilities | 14.21B | 14.18B | 13.05B | 13.23B | 13.84B | 14.33B |
| Stockholders Equity | 33.74B | 33.82B | 35.18B | 35.57B | 36.47B | 37.99B |
Cash Flow | ||||||
| Free Cash Flow | 4.57B | 4.28B | 3.12B | 3.56B | 3.78B | 2.39B |
| Operating Cash Flow | 5.11B | 4.81B | 3.85B | 4.82B | 4.48B | 2.74B |
| Investing Cash Flow | -1.61B | -1.32B | -1.10B | -1.27B | -657.37M | 2.14B |
| Financing Cash Flow | -3.43B | -2.98B | -1.71B | -4.06B | -4.29B | -3.96B |
Analog Devices Technical Analysis
Neutral
371.45
Price Trends
363.21
Positive
339.84
Positive
292.82
Positive
Market Momentum
11.18
Positive
44.66
Neutral
20.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Neutral. The current price of 371.45 is below the 20-day moving average (MA) of 407.07, above the 50-day MA of 363.21, and above the 200-day MA of 292.82, indicating a neutral trend. The MACD of 11.18 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 20.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $213.45B | 4.59 | 40.19% | 2.01% | 5.21% | -6.72% | |
81 Outperform | $194.33B | 41.21 | 9.79% | 1.43% | 29.75% | 83.33% | |
80 Outperform | $338.75B | 28.64 | 39.78% | 0.69% | 3.35% | 29.52% | |
77 Outperform | $78.30B | 10.55 | 26.14% | 1.79% | 2.37% | 13.28% | |
75 Outperform | $163.55B | 42.24 | 19.38% | 0.28% | 42.09% | ― | |
74 Outperform | $277.47B | 28.56 | 32.49% | 3.11% | 14.89% | 10.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ADI
Analog Devices
384.21
175.46
84.06%
AMAT
Applied Materials
427.36
268.01
168.19%
MRVL
Marvell
190.69
129.01
209.15%
NXPI
NXP Semiconductors
299.38
106.55
55.25%
QCOM
Qualcomm
213.41
69.41
48.21%
TXN
Texas Instruments
298.39
123.10
70.22%
Analog Devices Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Analog Devices Shareholders Back Board, Pay and Auditor
Positive
Mar 12, 2026
At its 2026 Annual Meeting of Shareholders, Analog Devices, Inc. saw all ten board nominees elected to serve until the next annual meeting, and investors gave advisory approval to the company’s executive compensation program. Shareholders al...
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.