10-QPeriod: Q2 FY2026

ANALOG DEVICES INC Quarterly Report for Q2 Ended May 2, 2026

Filed May 20, 2026For Securities:ADI

Summary

Analog Devices, Inc. (ADI) reported exceptionally strong financial results for the period ending May 2, 2026. The company demonstrated robust top-line growth, with revenue increasing by 37% year-over-year for the three-month period and 34% for the six-month period. This growth was driven by broad-based demand across its key end markets, particularly in Industrial and Communications sectors, with significant contributions from AI-driven infrastructure investments. Profitability saw a substantial improvement, with net income more than doubling year-over-year for both periods, reflecting strong revenue growth and improved gross margins. The company's operational efficiency is highlighted by a significant increase in gross margin percentage, attributed to higher manufacturing utilization and a favorable product mix. While Research and Development (R&D) and Selling, Marketing, General, and Administrative (SMG&A) expenses increased in absolute terms, they decreased as a percentage of revenue, showcasing improved operating leverage. ADI also continued its disciplined capital allocation, with substantial common stock repurchases and a recently declared quarterly dividend, signaling confidence in its financial health and future prospects.

Financial Highlights

56 data points
Beta

Revenue

$3.62B

67.3% Gross Margin

Net Income

$1.18B

32.5% Net Margin

EPS (Diluted)

$2.40

Total Assets

$47.95B

Cash & Equivalents

$2.44B

Free Cash Flow

$734.34M

Financial Statements
Beta
Revenue$3.62B
Cost of Revenue$1.18B
Gross Profit$2.44B
R&D Expenses$509.32M
SG&A Expenses$362.81M
Operating Expenses$1.06B
Operating Income$1.38B
Net Income$1.18B
EPS (Basic)$2.41
EPS (Diluted)$2.40
Shares Outstanding (Basic)487.61M
Shares Outstanding (Diluted)490.46M

Key Highlights

  • 1Revenue surged by 37% year-over-year to $3.62 billion for the three months ended May 2, 2026, and by 34% to $6.78 billion for the six months ended May 2, 2026.
  • 2Net income more than doubled, increasing by 106% to $1.18 billion for the three-month period and by 109% to $2.01 billion for the six-month period.
  • 3Gross margin percentage significantly improved to 67.3% for the quarter and 66.1% for the six months, up from 61.0% and 60.1% respectively in the prior year.
  • 4Strong revenue growth was observed across Industrial (48-56% Y/Y for six months), Communications (65% Y/Y for six months), and Consumer (25% Y/Y for six months) end markets.
  • 5Diluted Earnings Per Share (EPS) saw a substantial increase, reaching $2.40 for the quarter and $4.09 for the six months, up from $1.14 and $1.93 in the prior year, respectively.
  • 6The company repurchased approximately $1.29 billion of common stock during the six-month period, demonstrating a commitment to returning capital to shareholders.
  • 7Operating income showed remarkable growth, increasing by 100% to $1.38 billion for the quarter and by 102% to $2.38 billion for the six months.

Frequently Asked Questions

Analog Devices experienced a broad-based increase in demand across its product portfolio. Key drivers included strong performance in the Industrial sector, particularly in test equipment and aerospace/defense sub-markets, significant growth in the Communications sector fueled by AI-driven infrastructure investments, and robust demand in the Consumer sector.

The company saw significant improvements in gross margin due to higher manufacturing utilization and a favorable product mix. While R&D and SMG&A expenses increased in dollar amounts, they declined as a percentage of revenue, indicating improved operating leverage. This combination of strong revenue growth and enhanced gross margins, alongside controlled operating expenses, led to a substantial increase in net income and EPS.

The report indicates a very strong operational and financial performance. The significant year-over-year increases in revenue, gross margin, and net income, coupled with growth across major end markets, suggest a positive outlook. The company's focus on R&D for future innovations and its continued capital allocation strategies, including dividends and share repurchases, further support a confident outlook, though broader economic factors remain a consideration.

While the results are strong, the company acknowledges ongoing risks, including economic, political, and regulatory uncertainties, changes in demand for semiconductor products, supply chain disruptions, competition, and the potential material adverse effect of an ongoing IRS assessment related to transfer pricing. Investors should refer to the 'Risk Factors' section for a comprehensive overview.