What drove the strong year-over-year revenue growth?

Revenue rose 40% to $4.02 billion. Communications revenue nearly doubled (+84%) to $655 million, and Industrial grew 53% to $1.97 billion. Management attributed the growth to broad-based demand, with the Communications gain led by data center demand. Automotive grew 16% and Consumer grew 6%.

How much of the margin and EPS improvement is driven by one-time or accounting factors?

Part of it is. Adjusted results exclude acquisition-related amortization and expenses, transaction costs and special charges. GAAP operating margin of 40.1% is well below the 50.0% adjusted figure. The GAAP tax rate of 13.3% was also much lower than the prior-year 32.1%, which helped GAAP EPS. Tax-related items reduced GAAP EPS by $0.10 in the quarter, so the adjusted tax rate of 13.1% is the more comparable figure for the period.

What is the outlook for the fourth quarter of fiscal 2026?

ADI guided Q4 revenue to $4.3 billion (+/- $100 million), which would be about 6% above the Q3 level. Reported operating margin is expected near 42.6% and adjusted operating margin near 52.0%. Reported EPS is planned at $3.14 and adjusted EPS at $3.86, each +/- $0.15. Management described the guidance as a record fourth-quarter outlook and said demand strengthened through the third quarter.

Is the dividend and buyback program sustainable given the cash flow?

Trailing-twelve-month free cash flow of $4.9 billion covers the $2.0 billion in dividends paid over that period, but total cash returned of $5.2 billion exceeded free cash flow, with the gap funded by the balance sheet. Total debt, including commercial paper, is roughly $9.1 billion, and cash plus short-term investments is about $2.3 billion. The quarterly dividend of $1.10 per share is payable September 15, 2026, to holders of record on September 1, 2026. Future buybacks and dividends are at the discretion of the Board.

What acquisition activity affected the quarter?

ADI paid $1.5 billion for acquisitions in the quarter, and goodwill increased to $28.0 billion from $26.9 billion at fiscal year-end. Non-GAAP reconciliations reference acquisition-related expenses and transaction costs tied to the Empower Semiconductor acquisition, which added $23 million of transaction costs in the quarter. The filing does not give a detailed purchase price allocation, so investors should review the company's subsequent disclosures for details on the acquisition's contribution and strategic rationale.

ADI 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 19, 2026. Cited figures are marked; the original filing is the authoritative source.

Analog Devices (ADI) reported record fiscal third-quarter 2026 results for the quarter ended August 1, 2026, with revenue of $4.02 billion^a, up 40% year over year.

Growth was led by Communications (up 84%, largely Data Center) and Industrial (up 53%), while Automotive grew 16% and Consumer 6%. GAAP gross margin expanded to 67.3% (from 62.1%) and GAAP operating margin to 40.1% (from 28.4%). GAAP diluted EPS was $2.74^b versus $1.04, and adjusted diluted EPS was $3.45 versus $2.05.

Trailing-twelve-month operating cash flow of $5.5 billion^c and free cash flow of $4.9 billion equal 40% and 36% of revenue, respectively. The company returned $1.7 billion to shareholders in the quarter through dividends and buybacks. Management guided fiscal fourth-quarter 2026 revenue to $4.3 billion (+/- $100 million), with reported operating margin of about 42.6% and adjusted operating margin of about 52.0%.

Planned GAAP EPS is $3.14^d and adjusted EPS is $3.86, both +/- $0.15. The Board declared a quarterly dividend of $1.10 per share, payable September 15, 2026. The quarter also included a $1.5 billion acquisition payment, and the Empower Semiconductor acquisition is referenced in the non-GAAP disclosures.

Investors should note that the balance sheet shows goodwill rising to about $28.0 billion and total debt (current debt, commercial paper and long-term debt) of roughly $9.1 billion, and that the very low GAAP tax rate of 13.3% in the quarter, versus 32.1% a year earlier, flatters GAAP EPS. Sequentially, the quarter's cash flow was strong after a weak second quarter, which had operating cash flow of only $872 million.

02—Key points

Key Highlights

Revenue of $4.02 billion, up 40% year over year, with Communications (+84%) and Industrial (+53%) driving growth
GAAP gross margin of 67.3% (up 520 bps) and GAAP operating margin of 40.1% (up 1,170 bps) year over year
GAAP diluted EPS of $2.74 (up 163%) and adjusted diluted EPS of $3.45 (up 68%); the GAAP effective tax rate fell to 13.3% from 32.1%
Trailing-twelve-month operating cash flow of $5.5 billion and free cash flow of $4.9 billion, each 36-40% of revenue
Q4 FY2026 guidance: revenue of $4.3 billion (+/- $100 million), GAAP EPS of $3.14 and adjusted EPS of $3.86 (both +/- $0.15)
Shareholder returns of $1.7 billion in the quarter, including $1.16 billion in buybacks, and a declared quarterly dividend of $1.10 per share
Balance sheet: $1.5 billion spent on acquisitions in the quarter, goodwill up to $28.0 billion, and cash plus short-term investments of about $2.3 billion

03—Questions

Frequently Asked Questions

What drove the strong year-over-year revenue growth?
Revenue rose 40% to $4.02 billion. Communications revenue nearly doubled (+84%) to $655 million, and Industrial grew 53% to $1.97 billion. Management attributed the growth to broad-based demand, with the Communications gain led by data center demand. Automotive grew 16% and Consumer grew 6%.
How much of the margin and EPS improvement is driven by one-time or accounting factors?
Part of it is. Adjusted results exclude acquisition-related amortization and expenses, transaction costs and special charges. GAAP operating margin of 40.1% is well below the 50.0% adjusted figure. The GAAP tax rate of 13.3% was also much lower than the prior-year 32.1%, which helped GAAP EPS. Tax-related items reduced GAAP EPS by $0.10 in the quarter, so the adjusted tax rate of 13.1% is the more comparable figure for the period.
What is the outlook for the fourth quarter of fiscal 2026?
ADI guided Q4 revenue to $4.3 billion (+/- $100 million), which would be about 6% above the Q3 level. Reported operating margin is expected near 42.6% and adjusted operating margin near 52.0%. Reported EPS is planned at $3.14 and adjusted EPS at $3.86, each +/- $0.15. Management described the guidance as a record fourth-quarter outlook and said demand strengthened through the third quarter.
Is the dividend and buyback program sustainable given the cash flow?
Trailing-twelve-month free cash flow of $4.9 billion covers the $2.0 billion in dividends paid over that period, but total cash returned of $5.2 billion exceeded free cash flow, with the gap funded by the balance sheet. Total debt, including commercial paper, is roughly $9.1 billion, and cash plus short-term investments is about $2.3 billion. The quarterly dividend of $1.10 per share is payable September 15, 2026, to holders of record on September 1, 2026. Future buybacks and dividends are at the discretion of the Board.
What acquisition activity affected the quarter?
ADI paid $1.5 billion for acquisitions in the quarter, and goodwill increased to $28.0 billion from $26.9 billion at fiscal year-end. Non-GAAP reconciliations reference acquisition-related expenses and transaction costs tied to the Empower Semiconductor acquisition, which added $23 million of transaction costs in the quarter. The filing does not give a detailed purchase price allocation, so investors should review the company's subsequent disclosures for details on the acquisition's contribution and strategic rationale.

04—Continue

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