How strong was ADI's Q2 fiscal 2026 performance compared with the prior year?

Revenue grew 37% to $3.62 billion, GAAP operating income more than doubled to $1.38 billion, and GAAP diluted EPS rose 111% to $2.40. Adjusted diluted EPS grew 67% to $3.09. Management said results beat the high end of its outlook.

What is ADI guiding for fiscal Q3 2026?

ADI expects revenue of $3.9 billion (±$100 million), a GAAP operating margin of about 39.0% (±150 bps), and an adjusted operating margin of about 49.0% (±100 bps). It plans for GAAP EPS of $2.60 (±$0.15) and adjusted EPS of $3.30 (±$0.15). The adjusted-to-GAAP gap is mainly acquisition-related expenses, about $391 million in the quarter.

How much cash is ADI generating and returning to shareholders?

Trailing twelve-month operating cash flow was $5.1 billion and free cash flow was $4.6 billion, or 36% of revenue. In Q2 ADI paid $536 million in dividends and repurchased $773 million of stock, for total returns of $1.3 billion in the quarter and $5.0 billion over the trailing twelve months.

Are there any balance sheet or cash flow concerns?

Accounts receivable climbed to $2.05 billion from $1.44 billion at fiscal year-end, and changes in operating assets and liabilities consumed $808 million of cash in Q2. Quarterly operating cash flow was $872 million, versus $1.37 billion in the prior quarter. Total debt is roughly $8.7 billion, with about $3.4 billion of cash and short-term investments. Cash and investments fell during the quarter as buybacks and dividends exceeded free cash flow.

Does this 8-K create any new legal obligations or disclosures beyond the earnings release?

No. The earnings release is furnished under Item 2.02 and is not deemed 'filed' for Section 18 of the Exchange Act, nor incorporated by reference into other filings unless specifically referenced. The filing itself reports no new material agreements, executive changes, or other events beyond the results and dividend declaration.

ADI 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 20, 2026. Cited figures are marked; the original filing is the authoritative source.

Analog Devices (ADI) reported record fiscal Q2 2026 results for the quarter ended May 2, 2026.

Revenue rose 37% year over year to $3.62 billion^a, with growth across all end markets, led by Communications (+79%) and Industrial (+56%). GAAP gross margin expanded 630 bps to 67.3%, GAAP operating margin rose to 38.1% from 25.7%, and GAAP diluted EPS was $2.40, up 111%. Adjusted diluted EPS was $3.09, up 67%, and adjusted operating margin reached 49.0%.

Management said Q2 revenue and earnings came in above the high end of its outlook and that record bookings were seen across the Industrial, Automotive, and Communications B2B markets. Cash generation was strong. Trailing twelve-month operating cash flow was $5.1 billion^b (40% of revenue) and free cash flow was $4.6 billion (36% of revenue).

In the quarter ADI returned $1.3 billion^c to shareholders through dividends ($536 million) and buybacks ($773 million). The balance sheet shows total debt of roughly $8.7 billion (including current debt and commercial paper), with cash and short-term investments of about $3.4 billion. Goodwill and intangibles remain large, and accounts receivable rose sharply to $2.05 billion from $1.44 billion at fiscal year-end, a build that drove a $808 million working-capital outflow in the quarter.

For fiscal Q3 2026, ADI guided to revenue of $3.9 billion^d (±$100 million), GAAP operating margin of about 39.0%, adjusted operating margin of about 49.0%, GAAP EPS of $2.60 (±$0.15), and adjusted EPS of $3.30 (±$0.15). The board declared a quarterly dividend of $1.10 per share, payable June 16, 2026 to holders of record on June 2, 2026. The filing furnishes the earnings press release under Item 2.02 and states that it is not deemed 'filed' under the Exchange Act.

02—Key points

Key Highlights

Q2 FY2026 revenue of $3.62B, up 37% y/y, above the high end of the company's outlook, with growth in all four end markets
GAAP gross margin of 67.3% (+630 bps y/y) and GAAP operating margin of 38.1% (+1,240 bps y/y); adjusted operating margin of 49.0%
GAAP diluted EPS of $2.40 (+111% y/y); adjusted diluted EPS of $3.09 (+67% y/y)
Communications revenue up 79% y/y and Industrial up 56% y/y, while Automotive grew only 2%
Q3 FY2026 guidance: revenue $3.9B (±$100M), GAAP EPS $2.60 and adjusted EPS $3.30 (each ±$0.15)
TTM free cash flow of $4.57B (36% of revenue); $1.3B returned to shareholders in the quarter via dividends and buybacks
Quarterly dividend of $1.10/share declared, payable June 16, 2026; accounts receivable rose to $2.05B from $1.44B at fiscal year-end, a working-capital headwind

03—Questions

Frequently Asked Questions

How strong was ADI's Q2 fiscal 2026 performance compared with the prior year?
Revenue grew 37% to $3.62 billion, GAAP operating income more than doubled to $1.38 billion, and GAAP diluted EPS rose 111% to $2.40. Adjusted diluted EPS grew 67% to $3.09. Management said results beat the high end of its outlook.
What is ADI guiding for fiscal Q3 2026?
ADI expects revenue of $3.9 billion (±$100 million), a GAAP operating margin of about 39.0% (±150 bps), and an adjusted operating margin of about 49.0% (±100 bps). It plans for GAAP EPS of $2.60 (±$0.15) and adjusted EPS of $3.30 (±$0.15). The adjusted-to-GAAP gap is mainly acquisition-related expenses, about $391 million in the quarter.
How much cash is ADI generating and returning to shareholders?
Trailing twelve-month operating cash flow was $5.1 billion and free cash flow was $4.6 billion, or 36% of revenue. In Q2 ADI paid $536 million in dividends and repurchased $773 million of stock, for total returns of $1.3 billion in the quarter and $5.0 billion over the trailing twelve months.
Are there any balance sheet or cash flow concerns?
Accounts receivable climbed to $2.05 billion from $1.44 billion at fiscal year-end, and changes in operating assets and liabilities consumed $808 million of cash in Q2. Quarterly operating cash flow was $872 million, versus $1.37 billion in the prior quarter. Total debt is roughly $8.7 billion, with about $3.4 billion of cash and short-term investments. Cash and investments fell during the quarter as buybacks and dividends exceeded free cash flow.
Does this 8-K create any new legal obligations or disclosures beyond the earnings release?
No. The earnings release is furnished under Item 2.02 and is not deemed 'filed' for Section 18 of the Exchange Act, nor incorporated by reference into other filings unless specifically referenced. The filing itself reports no new material agreements, executive changes, or other events beyond the results and dividend declaration.

04—Continue

← View all 8-K filings