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Analog Devices
(NASDAQ:ADI)
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Rating:71Outperform
Price Target:
$404.00
▲(8.64% Upside)
Action:Reiterated
Date:07/30/26
ADI scores well on fundamentals and earnings-call execution: strong margins, strong free-cash-flow generation, and constructive guidance supported by industrial/data-center demand. The score is held back by weak near-term technical positioning (trading below key moving averages) and a demanding valuation (P/E ~54), which increases sensitivity to any cyclical or margin/inventory setbacks.
Positive Factors
High margins & profitability
Sustained, industry-leading gross and net margins reflect ADI’s differentiated analog/RF/DSP IP and long product lifecycles. High margins underpin durable cash generation, allow reinvestment in capacity and R&D, and provide buffer through semiconductor cycles over the next several quarters.
Negative Factors
Elevated inventory and working capital
High inventory days tie up cash and raise obsolescence risk in fast-moving end markets. Persistent elevated working capital reduces effective free cash flow and increases sensitivity to any demand softening or channel destocking over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sustained, industry-leading gross and net margins reflect ADI’s differentiated analog/RF/DSP IP and long product lifecycles. High margins underpin durable cash generation, allow reinvestment in capacity and R&D, and provide buffer through semiconductor cycles over the next several quarters.
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
$178.60B
Dividend Yield1.14%
Average Volume (3M)4.64M
Price to Earnings (P/E)54.4
Beta (1Y)1.63
Revenue Growth29.75%
EPS Growth83.33%
CountryUS
Employees24,500
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)6.76
Shares Outstanding487,087,040
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
$463.75Price Target Upside24.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)12.4
Revenue Forecast (FY)$14.75B
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:May 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 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 | 6.23B | 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
Negative
371.86
Price Trends
397.41
Negative
378.38
Negative
329.98
Positive
Market Momentum
-7.03
Positive
41.50
Neutral
37.91
Neutral
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 379.37, below the 50-day MA of 397.41, and above the 200-day MA of 329.98, indicating a neutral trend. The MACD of -7.03 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 37.91 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $398.39B | 47.49 | 39.78% | 0.36% | 3.35% | 29.52% | |
75 Outperform | $61.82B | 19.45 | 26.14% | 1.51% | 2.37% | 13.28% | |
71 Outperform | $178.60B | 54.35 | 9.79% | 1.12% | 29.75% | 83.33% | |
71 Outperform | $254.58B | 41.72 | 35.77% | 2.01% | 16.66% | 20.14% | |
69 Neutral | $159.18B | 16.81 | 37.33% | 2.15% | 1.87% | -16.70% | |
68 Neutral | $160.53B | 63.82 | 16.84% | 0.12% | 34.07% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ADI
Analog Devices
367.41
148.64
67.94%
AMAT
Applied Materials
507.67
328.99
184.12%
MRVL
Marvell
187.56
113.27
152.47%
NXPI
NXP Semiconductors
229.16
22.91
11.11%
QCOM
Qualcomm
147.61
2.48
1.71%
TXN
Texas Instruments
275.74
99.45
56.41%
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.