10-QPeriod: Q1 FY2026

ANALOG DEVICES INC Quarterly Report for Q1 Ended Jan 31, 2026

Filed February 18, 2026For Securities:ADI

Summary

Analog Devices Inc. (ADI) reported a robust fiscal first quarter for 2026, with significant year-over-year growth across key financial metrics. Revenue surged by 30% to $3.16 billion, driven by strong demand in industrial, automotive, and communications end markets, with particular strength noted in datacenters and test equipment. The company also saw a substantial improvement in profitability, with net income more than doubling to $830.8 million, translating to a diluted EPS of $1.69, a significant increase from $0.78 in the prior year's comparable quarter. This performance was underpinned by a notable expansion in gross margin to 64.7%, up from 59.0%, attributed to higher factory utilization and a favorable product mix. Operationally, ADI demonstrated strong cash flow generation, with net cash provided by operating activities increasing to $1.37 billion. The company maintained a healthy liquidity position with $4.0 billion in cash, cash equivalents, and short-term investments. ADI continued its commitment to shareholder returns through active share repurchases and dividend payments, further signaling financial strength and confidence in its future outlook. The company also highlighted strategic investments in R&D to fuel future growth and innovation.

Financial Highlights

55 data points
Beta

Revenue

$3.16B

64.7% Gross Margin

Net Income

$830.83M

26.3% Net Margin

EPS (Diluted)

$1.69

Total Assets

$47.99B

Cash & Equivalents

$2.91B

Free Cash Flow

$1.26B

Financial Statements
Beta
Revenue$3.16B
Cost of Revenue$1.12B
Gross Profit$2.04B
R&D Expenses$467.40M
SG&A Expenses$345.25M
Operating Expenses$1.05B
Operating Income$997.03M
Net Income$830.83M
EPS (Basic)$1.70
EPS (Diluted)$1.69
Shares Outstanding (Basic)488.87M
Shares Outstanding (Diluted)491.66M

Key Highlights

  • 1Revenue increased 30% year-over-year to $3.16 billion, driven by broad-based demand across industrial, automotive, and communications end markets.
  • 2Net income more than doubled to $830.8 million, a 112% increase from the prior year's quarter.
  • 3Diluted EPS rose significantly to $1.69, a 117% increase compared to $0.78 in the prior year.
  • 4Gross margin expanded by 570 basis points to 64.7% due to higher factory utilization and favorable product mix.
  • 5Net cash provided by operating activities increased to $1.37 billion, demonstrating strong operational cash generation.
  • 6The company announced a cash dividend of $1.10 per share, payable in March 2026, reflecting a commitment to shareholder returns.
  • 7ADI repurchased approximately $516.5 million of its common stock during the quarter.

Frequently Asked Questions

Revenue growth of 30% was driven by a broad-based increase in demand for ADI's products. Key contributors included strong performance in the wireline sub-markets of the Communications end market, supporting datacenter expansion, the test equipment sub-market within the Industrial end market, and portable consumer products in the Consumer end market.

The gross margin percentage increased significantly by 570 basis points to 64.7% compared to the prior year's quarter. This improvement was primarily attributed to higher utilization of factories due to increased customer demand and a favorable mix of products sold into end markets. This enhanced gross margin, combined with strong revenue growth, led to net income more than doubling year-over-year.

As of January 31, 2026, ADI reported $4.0 billion in cash, cash equivalents, and short-term investments. The company generated $1.37 billion in cash from operating activities during the quarter. ADI continues to fund operations, capital expenditures, and shareholder returns through existing cash, operational cash flow, and available financing facilities.

Special charges, net, decreased by 25% year-over-year, primarily due to reduced charges related to Global Repositioning Actions. However, the company did record a $15.6 million impairment charge related to its leased facilities in San Jose, California, as a result of a sublease transaction.