Analog Devices (ADI)
NASDAQ:ADI
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Analog Devices
(NASDAQ:ADI)
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Rating:77Outperform
Price Target:
$458.00
▲(23.30% Upside)
Action:ReiteratedDate:04/25/26
ADI scores well on financial quality and cash generation, reinforced by a constructive earnings outlook with expected margin expansion and strong shareholder returns. The score is tempered by stretched technical conditions that raise pullback risk and a relatively expensive valuation (high P/E with a modest dividend yield).
Positive Factors
Cash generation & FCF conversion
Consistently strong operating cash flow and high FCF conversion provide durable financial flexibility. This supports continued R&D and capacity investment, funds the stated goal to return 100% of FCF, and strengthens the balance sheet against semiconductor cycle troughs over the next 2–6 months.
Negative Factors
Cyclical revenue and profitability volatility
Semiconductor cyclical swings have driven sharp revenue and margin moves in recent years, reducing visibility for investment and returns. This structural cyclicality risks uneven capital deployment and short-term margin pressure, requiring conservative planning through demand troughs over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF conversion
Consistently strong operating cash flow and high FCF conversion provide durable financial flexibility. This supports continued R&D and capacity investment, funds the stated goal to return 100% of FCF, and strengthens the balance sheet against semiconductor cycle troughs over the next 2–6 months.
Read all positive factors
Analog Devices (ADI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$196.39B
Dividend Yield1.43%
Average Volume (3M)3.33M
Price to Earnings (P/E)45.7
Beta (1Y)1.57
Revenue Growth25.91%
EPS Growth74.58%
CountryUS
Employees24,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.46
Shares Outstanding488,204,160
10 Day Avg. Volume2,934,432
30 Day Avg. Volume3,331,051
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/Revenue16.66
Enterprise Value/Gross Profit26.51
Enterprise Value/Ebitda35.45
Forecast
1Y Price Target
$395.95Price Target Upside6.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)11.42
Revenue Forecast (FY)$13.99B
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 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 Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call communicated strong, broad-based revenue growth, accelerating ATE and data center demand, robust margins, and exceptional cash generation and shareholder returns. Management provided an upbeat Q2 guide with meaningful margin improvement and reiterated long-term investment and capital return priorities. Near-term risks include automotive softness, an inventory build, and one-time pricing/channel effects that buoyed Q1/Q2 results. On balance the positive operational momentum, margin expansion and cash flow generation materially outweigh the noted headwinds.Positive Updates
Revenue outperformance
Q1 revenue of $3.16 billion, up 3% sequentially and 30% year-over-year, coming in above the midpoint of guidance.
Negative Updates
Automotive softness and near-term headwinds
Automotive represented 25% of revenue but was down 8% sequentially in Q1 despite +8% year-over-year. Management expects auto to be flat to down sequentially in Q2 (below typical seasonality) driven by tariff-related order pull-in/unwind and higher exposure to China; Q1 auto book-to-bill finished under 1.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue outperformance
Q1 revenue of $3.16 billion, up 3% sequentially and 30% year-over-year, coming in above the midpoint of guidance.
Read all positive updates
Company Guidance
For Q2 ADI guided revenue of $3.5 billion ± $100 million (about an 11% sequential increase from Q1’s $3.16B), adjusted EPS of $2.88 ± $0.15, and an operating margin at the midpoint of 47.5% ± 100 bps (Q1 was 45.5%), with a tax rate forecast of 11–13%; gross margin is expected to expand roughly 100 bps q/q (≈150 bps on a normalized basis excluding a one‑time ~50 bps channel repricing). Management said OpEx should rise mid‑single digits in Q2 (Q1 OpEx was $812M) but fall as a percent of revenue, producing ~200 bps of sequential operating‑margin improvement; pricing actions account for ~1/3 of the Q2 sequential revenue increase (about half of that is nonrecurring channel repricing), so ex‑price sequential growth is ~7% versus the 11% headline. By end market, Q2 assumptions include industrial up ~20% sequential (~50% YoY), communications up high‑single digits (~60% YoY), automotive flat to down sequential, and consumer down mid‑single digits. Corporate balance‑sheet and cash‑flow anchors cited: cash & short‑term investments $4.0B, net leverage 0.8, inventory days 171, TTM operating cash flow $5.1B, TTM CapEx $0.5B (fiscal ’26 CapEx expected to be 4–6% of revenue), TTM free cash flow $4.6B (39% of revenue); the company reiterated a long‑term target to return 100% of FCF and raised the quarterly dividend 11% to $1.10.Analog Devices Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.76B | 11.02B | 9.43B | 12.31B | 12.01B | 7.32B |
| Gross Profit | 7.39B | 6.77B | 5.38B | 7.88B | 7.80B | 4.86B |
| EBITDA | 5.52B | 5.03B | 4.20B | 6.17B | 5.60B | 2.59B |
| Net Income | 2.71B | 2.27B | 1.64B | 3.31B | 2.75B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 47.99B | 47.99B | 48.23B | 48.79B | 50.30B | 52.32B |
| Cash, Cash Equivalents and Short-Term Investments | 4.05B | 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 | 14.20B | 14.18B | 13.05B | 13.23B | 13.84B | 14.33B |
| Stockholders Equity | 33.79B | 33.82B | 35.18B | 35.57B | 36.47B | 37.99B |
Cash Flow | ||||||
| Free Cash Flow | 4.56B | 4.28B | 3.12B | 3.56B | 3.78B | 2.39B |
| Operating Cash Flow | 5.05B | 4.81B | 3.85B | 4.82B | 4.48B | 2.74B |
| Investing Cash Flow | -1.23B | -1.32B | -1.10B | -1.27B | -657.37M | 2.14B |
| Financing Cash Flow | -3.26B | -2.98B | -1.71B | -4.06B | -4.29B | -3.96B |
Analog Devices Technical Analysis
Positive
371.45
Price Trends
331.17
Positive
307.81
Positive
272.39
Positive
Market Momentum
10.07
Negative
75.18
Negative
92.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Positive. The current price of 371.45 is above the 20-day moving average (MA) of 331.04, above the 50-day MA of 331.17, and above the 200-day MA of 272.39, indicating a bullish trend. The MACD of 10.07 indicates Negative momentum. The RSI at 75.18 is Negative, neither overbought nor oversold. The STOCH value of 92.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $196.39B | 45.73 | 7.92% | 1.43% | 25.91% | 74.58% | |
77 Outperform | $74.12B | 10.55 | 26.14% | 1.79% | 2.37% | 13.28% | |
74 Outperform | $255.81B | 28.56 | 32.49% | 3.11% | 14.89% | 10.49% | |
72 Outperform | $313.07B | 31.26 | 38.90% | 0.69% | 2.15% | 27.46% | |
71 Outperform | $189.28B | 15.44 | 40.19% | 2.01% | 5.21% | -6.72% | |
68 Neutral | $144.42B | 42.24 | 19.38% | 0.28% | 42.09% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ADI
Analog Devices
402.26
206.66
105.65%
AMAT
Applied Materials
394.49
240.57
156.30%
MRVL
Marvell
165.15
102.99
165.68%
NXPI
NXP Semiconductors
293.59
108.97
59.02%
QCOM
Qualcomm
179.58
42.97
31.46%
TXN
Texas Instruments
281.08
120.25
74.76%
Analog Devices Corporate Events
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...
DividendsFinancial Disclosures
Analog Devices Posts Strong Q1 Results, Hikes Dividend
Positive
Feb 18, 2026
Analog Devices reported strong fiscal first-quarter 2026 results on February 18, 2026, with revenue rising 30% year-on-year to $3.16 billion, led by industrial and communications demand, and record orders in its data center segment. The company si...
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.