Analog Devices Reports Record Fiscal Second Quarter 2026 Financial Results
Rhea-AI Summary
Analog Devices (NASDAQ: ADI) reported record fiscal Q2 2026 results, with revenue of $3.62 billion, up 37% year over year, and diluted EPS of $2.40, up 111%. GAAP gross margin reached 67.3% and operating margin 38.1%.
Adjusted diluted EPS was $3.09, with adjusted operating margin of 49.0%. Trailing 12‑month free cash flow was $4.57 billion, or 36% of revenue. The company returned $1.3 billion to shareholders in Q2. For Q3 2026, ADI guides to $3.9 billion revenue and EPS of $2.60 GAAP and $3.30 adjusted. A quarterly dividend of $1.10 per share will be paid June 16, 2026.
AI-generated analysis. Not financial advice.
Positive
- Q2 2026 revenue rose 37% year over year to $3.62 billion
- GAAP diluted EPS increased 111% year over year to $2.40
- GAAP operating margin expanded to 38.1%, up 1,240 basis points
- Adjusted operating margin reached 49.0%, up 780 basis points year over year
- Trailing 12‑month free cash flow totaled $4.57 billion, 36% of revenue
- Returned $1.3 billion to shareholders in Q2 and $5.0 billion over 12 months
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
Sector momentum scanner flags a broader semiconductor move: 3 peers (e.g., INTC, MRVL, MU) moving up with median gain around 4.4%. ADI was also flagged as moving up in this scan, pointing to sector-wide strength rather than a purely idiosyncratic reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Q1 2026 earnings | Positive | +2.6% | Strong Q1 growth, margin expansion, dividend hike and upbeat Q2 guidance. |
| Nov 25 | Q4 2025 earnings | Positive | +5.3% | Q4 and FY25 double‑digit growth, margin gains, high cash returns, solid outlook. |
| Aug 20 | Q3 2025 earnings | Positive | +6.3% | Q3 revenue up 25% YoY, strong margins, high TTM cash flow and returns. |
| Feb 19 | Q1 2025 earnings | Neutral | +9.7% | Revenue modestly down but solid cash flow, dividend increase and buyback boost. |
| Nov 26 | Q4 2024 earnings | Negative | -2.0% | Significant FY24 revenue and EPS declines despite maintained high operating margins. |
Earnings releases have consistently driven positive stock reactions, regardless of whether the backdrop was accelerating growth or recovery from prior softness.
Across the last five earnings releases from Nov 2024 through Feb 2026, ADI moved from a period of revenue and EPS declines to strong, broad-based growth with expanding margins. Fiscal 2025 ended with double‑digit revenue growth and high cash‑return levels, followed by Q1 FY26 results that beat guidance and raised the dividend to $1.10. These Q2 FY26 results extend that trend with higher revenue, margins, and continued robust cash generation and shareholder returns.
Historical Comparison
In the past 5 earnings releases, ADI’s average 1-day move was about 4.37%. This report’s impact can be gauged against that typical post-earnings volatility band.
Earnings releases show a clear progression from FY2024 revenue declines to FY2025 recovery and into FY2026 acceleration, with rising quarterly revenue, expanding margins, and steadily higher adjusted EPS alongside strong cash generation and shareholder returns.
Market Pulse Summary
This announcement details a robust quarter for ADI, with Q2 revenue of $3.623B, significant margin expansion, and non‑GAAP EPS of $3.09, all paired with strong free cash flow of $4.565B on a trailing basis. Management guided Q3 revenue to $3.9B ±$0.1B and maintained a quarterly dividend of $1.10 per share. Relative to prior earnings, it continues a trend of improving growth and profitability, while investors may watch future bookings, cash deployment, and macro demand conditions.
Key Terms
free cash flow financial
non-gaap financial
AI-generated analysis. Not financial advice.
- Revenue of
$3.62 billion - Operating cash flow of
$5.1 billion $4.6 billion 40% and36% of revenue, respectively - Returned
$1.3 billion
"ADI's second quarter revenue and earnings were above the high end of our outlook, reflecting the combination of record demand and sharp operational discipline," said Vincent Roche, CEO and Chair. "Our innovation-led value creation strategy targets our customers' most complex and consequential challenges with a goal of delivering substantial and sustained business impact. We continue to invest to extend our technology performance leadership and enhance our long-term value for customers and shareholders alike."
"We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications," said Richard Puccio, CFO. "These positive demand signals are reflected in our outlook for continued strong growth in the third quarter."
Performance for the Second Quarter of Fiscal 2026 | |||||
Results Summary(1) | |||||
(in millions, except per-share amounts and percentages) | |||||
Three Months Ended | |||||
May 2, 2026 | May 3, 2025 | Change | |||
Revenue | $ 3,623 | $ 2,640 | 37 % | ||
Gross margin | $ 2,440 | $ 1,612 | 51 % | ||
Gross margin percentage | 67.3 % | 61.0 % | 630 bps | ||
Operating income | $ 1,380 | $ 678 | 104 % | ||
Operating margin | 38.1 % | 25.7 % | 1,240 bps | ||
Diluted earnings per share | $ 2.40 | $ 1.14 | 111 % | ||
Adjusted Results(2) | |||||
Adjusted gross margin | $ 2,645 | $ 1,832 | 44 % | ||
Adjusted gross margin percentage | 73.0 % | 69.4 % | 360 bps | ||
Adjusted operating income | $ 1,774 | $ 1,088 | 63 % | ||
Adjusted operating margin | 49.0 % | 41.2 % | 780 bps | ||
Adjusted diluted earnings per share | $ 3.09 | $ 1.85 | 67 % | ||
Three Months | Trailing Twelve | ||||
Cash Generation | May 2, 2026 | May 2, 2026 | |||
Net cash provided by operating activities | $ 872 | $ 5,106 | |||
% of revenue | 24 % | 40 % | |||
Capital expenditures | $ (138) | $ (541) | |||
Free cash flow(2) | $ 734 | $ 4,565 | |||
% of revenue | 20 % | 36 % | |||
Three Months | Trailing Twelve | ||||
Cash Return | May 2, 2026 | May 2, 2026 | |||
Dividend paid | $ (536) | $ (1,998) | |||
Stock repurchases | (773) | (3,045) | |||
Total cash returned | $ (1,309) | $ (5,043) | |||
(1) The sum and/or computation of the individual amounts may not equal the total due to rounding. | |||||
(2) Reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures are provided in the financial tables included in this press release. See also the "Non-GAAP Financial Information" section for additional information. | |||||
Outlook for the Third Quarter of Fiscal Year 2026
For the third quarter of fiscal 2026, we are forecasting revenue of
Our third quarter fiscal 2026 outlook is based on current expectations and actual results may differ materially as a result of, among other things, the important factors discussed at the end of this release. The statements about our third quarter fiscal 2026 outlook supersede all prior statements regarding our business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.
The adjusted results and adjusted anticipated results above are financial measures presented on a non-GAAP basis. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided in the financial tables included in this release. See also the "Non-GAAP Financial Information" section for additional information.
Dividend Payment
The ADI Board of Directors has declared a quarterly cash dividend of
Conference Call Scheduled for Today, Wednesday, May 20, 2026 at 10:00 am ET
ADI will host a conference call to discuss our second quarter fiscal 2026 results and short-term outlook today, beginning at 10:00 am ET. Investors may join via webcast, accessible at investor.analog.com.
Non-GAAP Financial Information
This release includes non-GAAP financial measures that are not in accordance with, nor an alternative to,
Management uses non-GAAP measures internally to evaluate the Company's operating performance from continuing operations against past periods and to budget and allocate resources in future periods. These non-GAAP measures also assist management in evaluating the Company's core business and trends across different reporting periods on a consistent basis. Management also uses these non-GAAP measures as primary performance measurements when communicating with analysts and investors regarding the Company's earnings results and outlook and believes that the presentation of these non-GAAP measures is useful to investors because it provides investors with the operating results that management uses to manage the Company and enables investors and analysts to evaluate the Company's core business. Management also believes that free cash flow, a non-GAAP liquidity measure, is useful both internally and to investors because it is indicative of the Company's ability to pay dividends, purchase common stock, make investments and fund acquisitions and, in the absence of refinancings, to repay its debt obligations.
The non-GAAP financial measures referenced by ADI in this release include: adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted operating expenses percentage, adjusted operating income, adjusted operating margin, adjusted nonoperating expense (income), adjusted income before income taxes, adjusted provision for income taxes, adjusted tax rate, adjusted diluted earnings per share (EPS), free cash flow, and free cash flow revenue percentage.
Adjusted gross margin is defined as gross margin, determined in accordance with GAAP, excluding: certain acquisition related expenses1, which are described further below. Adjusted gross margin percentage represents adjusted gross margin divided by revenue.
Adjusted operating expenses is defined as operating expenses, determined in accordance with GAAP, excluding: certain acquisition related expenses1 and special charges, net2, which are described further below. Adjusted operating expenses percentage represents adjusted operating expenses divided by revenue.
Adjusted operating income is defined as operating income, determined in accordance with GAAP, excluding: acquisition related expenses1 and special charges, net2, which are described further below. Adjusted operating margin represents adjusted operating income divided by revenue.
Adjusted nonoperating expense (income) is defined as nonoperating expense (income), determined in accordance with GAAP, excluding: certain acquisition related expenses1, which is described further below.
Adjusted income before income taxes is defined as income before income taxes, determined in accordance with GAAP, excluding: acquisition related expenses1 and special charges, net2, which are described further below.
Adjusted provision for income taxes is defined as provision for income taxes, determined in accordance with GAAP, excluding tax related items3, which are described further below. Adjusted tax rate represents adjusted provision for income taxes divided by adjusted income before income taxes.
Adjusted diluted EPS is defined as diluted EPS, determined in accordance with GAAP, excluding: acquisition related expenses1, special charges, net2, and tax related items3, which are described further below.
Free cash flow is defined as net cash provided by operating activities, determined in accordance with GAAP, less additions to property, plant and equipment, net. Free cash flow revenue percentage represents free cash flow divided by revenue.
1Acquisition Related Expenses: Expenses incurred as a result of current and prior period acquisitions and primarily include expenses associated with the fair value adjustments to debt, property, plant and equipment and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. We excluded these costs from our non-GAAP measures because they relate to specific transactions and are not reflective of our ongoing financial performance.
2Special Charges, Net: Expenses, net, incurred in connection with facility closures, consolidation of manufacturing facilities, severance, other accelerated stock-based compensation expense and other cost reduction efforts or reorganizational initiatives. We excluded these expenses from our non-GAAP measures because apart from ongoing expense savings as a result of such items, these expenses have no direct correlation to the operation of our business in the future.
3Tax Related Items: Income tax effect of the non-GAAP items discussed above. We excluded the income tax effect of these tax related items from our non-GAAP measures because they are not associated with the tax expense on our current operating results.
About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than
Forward-Looking Statements
This press release contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding future financial performance; impacts related to tariffs and other trade restrictions; economic uncertainty; macroeconomic, geopolitical, demand and other market conditions, business cycles, and supply chains; our capital allocation strategy, including future dividends, share repurchases, capital expenditures, investments, and free cash flow returns; expected revenue, operating margin, nonoperating expenses, tax rate, earnings per share, and other financial results; expected market and technology trends and acceleration of those trends; market size, market share gains, market position, and growth opportunities; expected product solutions, offerings, technologies, capabilities, and applications; the value and importance of, and other benefits related to, our product solutions, offerings, and technologies to our customers; benefits related to our hybrid manufacturing model; and other future events. Statements that are not historical facts, including statements about our beliefs, plans and expectations, are forward-looking statements. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: economic, political, legal and regulatory uncertainty or conflicts; recently announced and future tariffs and other trade restrictions; changes in export classifications, import and export regulations or duties and tariffs; changes in demand for semiconductor products; performance of independent distributors; manufacturing delays, product and raw materials availability and supply chain disruptions; products may be diverted from our authorized distribution channels; our development of technologies and research and development investments; our ability to compete successfully in the markets in which we operate; our future liquidity, capital needs and capital expenditures; our ability to recruit and retain key personnel; risks related to acquisitions or other strategic transactions; security breaches or other cyber incidents; risks related to the use of artificial intelligence in our business operations, products, and services; adverse results in litigation matters; reputational damage; changes in our estimates of our expected tax rates based on current tax law; risks related to our indebtedness; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; and uncertainty as to the long-term value of our common stock. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Forward-looking statements represent management's current expectations and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
Analog Devices and the Analog Devices logo are registered trademarks or trademarks of Analog Devices, Inc. All other trademarks mentioned in this document are the property of their respective owners.
ANALOG DEVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Six Months Ended | ||||||
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||||
Revenue | $ 3,623,465 | $ 2,640,068 | $ 6,783,728 | $ 5,063,242 | |||
Cost of sales | 1,183,667 | 1,028,458 | 2,298,955 | 2,021,329 | |||
Gross margin | 2,439,798 | 1,611,610 | 4,484,773 | 3,041,913 | |||
Operating expenses: | |||||||
Research and development | 509,323 | 441,837 | 976,723 | 844,729 | |||
Selling, marketing, general and administrative | 362,810 | 302,669 | 708,063 | 587,465 | |||
Amortization of intangibles | 187,985 | 187,415 | 375,300 | 374,830 | |||
Special charges, net | — | 1,745 | 47,982 | 65,632 | |||
Total operating expenses | 1,060,118 | 933,666 | 2,108,068 | 1,872,656 | |||
Operating income | 1,379,680 | 677,944 | 2,376,705 | 1,169,257 | |||
Nonoperating expense (income): | |||||||
Interest expense | 87,619 | 74,703 | 173,963 | 149,967 | |||
Interest income | (28,565) | (21,725) | (60,822) | (45,212) | |||
Other, net | (4,202) | (962) | (7,135) | 2,998 | |||
Total nonoperating expense (income) | 54,852 | 52,016 | 106,006 | 107,753 | |||
Income before income taxes | 1,324,828 | 625,928 | 2,270,699 | 1,061,504 | |||
Provision for income taxes | 148,478 | 56,158 | 263,523 | 100,418 | |||
Net income | $ 1,176,350 | $ 569,770 | $ 2,007,176 | $ 961,086 | |||
Shares used to compute earnings per common share | 487,605 | 496,173 | 488,239 | 496,145 | |||
Shares used to compute earnings per common share | 490,458 | 498,201 | 491,057 | 498,434 | |||
Basic earnings per common share | $ 2.41 | $ 1.15 | $ 4.11 | $ 1.94 | |||
Diluted earnings per common share | $ 2.40 | $ 1.14 | $ 4.09 | $ 1.93 | |||
ANALOG DEVICES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) | |||
May 2, 2026 | Nov. 1, 2025 | ||
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | $ 2,436,916 | $ 2,499,406 | |
Short-term investments | 1,002,392 | 1,152,915 | |
Accounts receivable | 2,051,733 | 1,436,075 | |
Inventories | 1,848,405 | 1,656,323 | |
Prepaid expenses and other current assets | 470,327 | 363,342 | |
Total current assets | 7,809,773 | 7,108,061 | |
Non-current Assets | |||
Net property, plant and equipment | 3,292,288 | 3,315,696 | |
Goodwill | 26,973,180 | 26,945,180 | |
Intangible assets, net | 7,255,362 | 8,013,815 | |
Deferred tax assets | 1,729,558 | 1,867,102 | |
Other assets | 888,934 | 742,858 | |
Total non-current assets | 40,139,322 | 40,884,651 | |
TOTAL ASSETS | $ 47,949,095 | $ 47,992,712 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current Liabilities | |||
Accounts payable | $ 598,640 | $ 543,760 | |
Income taxes payable | 325,626 | 610,370 | |
Debt, current | 899,227 | — | |
Commercial paper notes | 550,198 | 446,639 | |
Accrued liabilities | 2,083,216 | 1,645,032 | |
Total current liabilities | 4,456,907 | 3,245,801 | |
Non-current Liabilities | |||
Long-term debt | 7,235,424 | 8,145,066 | |
Deferred income taxes | 1,906,115 | 2,163,281 | |
Income taxes payable | 87,109 | 100,963 | |
Other non-current liabilities | 521,507 | 521,846 | |
Total non-current liabilities | 9,750,155 | 10,931,156 | |
Shareholders' Equity | |||
Preferred stock, | — | — | |
Common stock, | 81,183 | 81,611 | |
Capital in excess of par value | 22,287,095 | 23,349,185 | |
Retained earnings | 11,525,998 | 10,539,541 | |
Accumulated other comprehensive loss | (152,243) | (154,582) | |
Total shareholders' equity | 33,742,033 | 33,815,755 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 47,949,095 | $ 47,992,712 | |
ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||||
Cash flows from operating activities: | |||||||
Net income | $ 1,176,350 | $ 569,770 | $ 2,007,176 | $ 961,086 | |||
Adjustments to reconcile net income to net cash | |||||||
Depreciation | 104,957 | 100,334 | 210,843 | 198,781 | |||
Amortization of intangibles | 385,978 | 400,273 | 770,593 | 817,429 | |||
Stock-based compensation expense | 81,721 | 72,831 | 167,396 | 150,405 | |||
Deferred income taxes | (60,269) | (89,916) | (120,930) | (149,370) | |||
Other | (8,698) | 5,002 | 4,727 | 4,203 | |||
Changes in operating assets and liabilities | (807,998) | (238,816) | (799,249) | (36,247) | |||
Total adjustments | (304,309) | 249,708 | 233,380 | 985,201 | |||
Net cash provided by operating activities | 872,041 | 819,478 | 2,240,556 | 1,946,287 | |||
Cash flows from investing activities: | |||||||
Maturities of short-term available-for-sale investments | 137,825 | 372,778 | 147,817 | 372,778 | |||
Additions to property, plant and equipment, net | (137,702) | (90,268) | (247,015) | (239,246) | |||
Proceeds from sale of property, plant and equipment, net | — | 58,892 | — | 58,892 | |||
Payments for acquisitions, net of cash acquired | (35,875) | — | (35,875) | (45,652) | |||
Other | (16,174) | (13,209) | (23,882) | (12,880) | |||
Net cash (used for) provided by investing activities | (51,926) | 328,193 | (158,955) | 133,892 | |||
Cash flows from financing activities: | |||||||
Debt repayments | — | (399,998) | — | (399,998) | |||
Proceeds from commercial paper notes | 4,107,964 | 2,347,064 | 7,154,789 | 4,316,340 | |||
Payments of commercial paper notes | (4,100,808) | (2,346,747) | (7,051,230) | (4,315,358) | |||
Repurchase of common stock | (772,902) | (248,646) | (1,289,401) | (409,014) | |||
Dividend payments to shareholders | (536,459) | (491,022) | (1,020,719) | (947,360) | |||
Proceeds from employee stock plans | 9,866 | 19,815 | 59,487 | 61,562 | |||
Other | 3,280 | (1,896) | 2,983 | (1,458) | |||
Net cash used for financing activities | (1,289,059) | (1,121,430) | (2,144,091) | (1,695,286) | |||
Net (decrease) increase in cash and cash equivalents | (468,944) | 26,241 | (62,490) | 384,893 | |||
Cash and cash equivalents at beginning of period | 2,905,860 | 2,349,994 | 2,499,406 | 1,991,342 | |||
Cash and cash equivalents at end of period | $ 2,436,916 | $ 2,376,235 | $ 2,436,916 | $ 2,376,235 | |||
ANALOG DEVICES, INC.
REVENUE TRENDS BY END MARKET
(Unaudited)
(In thousands)
The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. The assignment of products to end markets may change over time. When this occurs, we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.
Three Months Ended | |||||||||
May 2, 2026 | May 3, 2025 | ||||||||
Revenue | % of Revenue1 | Y/Y% | Revenue | % of Revenue1 | |||||
Industrial | $ 1,799,413 | 50 % | 56 % | $ 1,150,315 | 44 % | ||||
Automotive | 871,565 | 24 % | 2 % | 856,090 | 32 % | ||||
Communications | 554,728 | 15 % | 79 % | 310,604 | 12 % | ||||
Consumer | 397,759 | 11 % | 23 % | 323,059 | 12 % | ||||
Total revenue | $ 3,623,465 | 100 % | 37 % | $ 2,640,068 | 100 % | ||||
Six Months Ended | |||||||||
May 2, 2026 | May 3, 2025 | ||||||||
Revenue | % of Revenue1 | Y/Y% | Revenue | % of Revenue1 | |||||
Industrial | $ 3,296,449 | 49 % | 48 % | $ 2,220,569 | 44 % | ||||
Automotive | 1,681,709 | 25 % | 5 % | 1,596,349 | 32 % | ||||
Communications | 1,009,911 | 15 % | 65 % | 610,905 | 12 % | ||||
Consumer | 795,659 | 12 % | 25 % | 635,419 | 13 % | ||||
Total revenue | $ 6,783,728 | 100 % | 34 % | $ 5,063,242 | 100 % | ||||
1) The sum of the individual percentages may not equal the total due to rounding. | |||||||||
ANALOG DEVICES, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Six Months Ended | ||||||
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||||
Gross margin | $ 2,439,798 | $ 1,611,610 | $ 4,484,773 | $ 3,041,913 | |||
Gross margin percentage | 67.3 % | 61.0 % | 66.1 % | 60.1 % | |||
Acquisition related expenses | 205,464 | 220,277 | 410,212 | 458,109 | |||
Adjusted gross margin | $ 2,645,262 | $ 1,831,887 | $ 4,894,985 | $ 3,500,022 | |||
Adjusted gross margin percentage | 73.0 % | 69.4 % | 72.2 % | 69.1 % | |||
Operating expenses | $ 1,060,118 | $ 933,666 | $ 2,108,068 | $ 1,872,656 | |||
Percent of revenue | 29.3 % | 35.4 % | 31.1 % | 37.0 % | |||
Acquisition related expenses | (188,582) | (188,015) | (376,495) | (376,030) | |||
Special charges, net | — | (1,745) | (47,982) | (65,632) | |||
Adjusted operating expenses | $ 871,536 | $ 743,906 | $ 1,683,591 | $ 1,430,994 | |||
Adjusted operating expenses percentage | 24.1 % | 28.2 % | 24.8 % | 28.3 % | |||
Operating income | $ 1,379,680 | $ 677,944 | $ 2,376,705 | $ 1,169,257 | |||
Operating margin | 38.1 % | 25.7 % | 35.0 % | 23.1 % | |||
Acquisition related expenses | 394,046 | 408,292 | 786,707 | 834,139 | |||
Special charges, net | — | 1,745 | 47,982 | 65,632 | |||
Adjusted operating income | $ 1,773,726 | $ 1,087,981 | $ 3,211,394 | $ 2,069,028 | |||
Adjusted operating margin | 49.0 % | 41.2 % | 47.3 % | 40.9 % | |||
Nonoperating expense (income) | $ 54,852 | $ 52,016 | $ 106,006 | $ 107,753 | |||
Acquisition related expenses | 2,150 | 2,150 | 4,300 | 4,300 | |||
Adjusted nonoperating expense (income) | $ 57,002 | $ 54,166 | $ 110,306 | $ 112,053 | |||
Income before income taxes | $ 1,324,828 | $ 625,928 | $ 2,270,699 | $ 1,061,504 | |||
Acquisition related expenses | 391,896 | 406,142 | 782,407 | 829,839 | |||
Special charges, net | — | 1,745 | 47,982 | 65,632 | |||
Adjusted income before income taxes | $ 1,716,724 | $ 1,033,815 | $ 3,101,088 | $ 1,956,975 | |||
Provision for income taxes | $ 148,478 | $ 56,158 | $ 263,523 | $ 100,418 | |||
Effective income tax rate | 11.2 % | 9.0 % | 11.6 % | 9.5 % | |||
Tax related items | 54,219 | 57,573 | 114,668 | 122,635 | |||
Adjusted provision for income taxes | $ 202,697 | $ 113,731 | $ 378,191 | $ 223,053 | |||
Adjusted tax rate | 11.8 % | 11.0 % | 12.2 % | 11.4 % | |||
Diluted EPS | $ 2.40 | $ 1.14 | $ 4.09 | $ 1.93 | |||
Acquisition related expenses | 0.80 | 0.82 | 1.59 | 1.66 | |||
Special charges, net | — | — | 0.10 | 0.13 | |||
Tax related items | (0.11) | (0.12) | (0.23) | (0.25) | |||
Adjusted diluted EPS* | $ 3.09 | $ 1.85 | $ 5.54 | $ 3.48 | |||
* The sum of the individual per share amounts may not equal the total due to rounding. | |||||||
ANALOG DEVICES, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited) (In thousands) | |||||||||
Trailing Twelve Months | Three Months Ended | ||||||||
May 2, 2026 | May 2, 2026 | Jan. 31, 2026 | Nov. 1, 2025 | Aug. 2, 2025 | |||||
Revenue | $ 12,739,993 | $ 3,160,063 | |||||||
Net cash provided by operating activities | $ 5,106,471 | $ 872,041 | $ 1,368,515 | ||||||
% of Revenue | 40 % | 24 % | 43 % | 55 % | 40 % | ||||
Capital expenditures | $ (541,321) | $ (137,702) | $ (109,313) | $ (215,153) | $ (79,153) | ||||
Free cash flow | $ 4,565,150 | $ 734,339 | $ 1,259,202 | ||||||
% of Revenue | 36 % | 20 % | 40 % | 48 % | 38 % | ||||
ANALOG DEVICES, INC. RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS (Unaudited) | |||
Three Months Ending August 1, 2026 | |||
Reported | Adjusted | ||
Revenue | |||
(+/- | (+/- | ||
Operating margin | 39.0 % | 49.0 %(1) | |
(+/-150 bps) | (+/-100 bps) | ||
Tax rate | |||
Earnings per share | |||
(+/- | (+/- | ||
(1) Includes |
(2) Includes |
(3) Includes |
For more information, please contact:
Jeff Ambrosi
Senior Director, Investor Relations
Analog Devices, Inc.
781-461-3282
investor.relations@analog.com
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SOURCE Analog Devices, Inc.