Analog Devices (NASDAQ:ADI) Announces Quarterly Earnings Results

Analog Devices (NASDAQ:ADI) posted its quarterly earnings data on Wednesday. The semiconductor company reported $3.45 EPS for the quarter, beating analysts’ consensus estimates of $3.34 by $0.11, Zacks reports. The business had revenue of $4.02 billion during the quarter, compared to analysts’ expectations of $3.92 billion. Analog Devices had a return on equity of 16.39% and a net margin of 29.79%.The business’s revenue was up 39.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.05 earnings per share. Analog Devices updated its Q4 2026 guidance to 3.710-4.010 EPS.

Here are the key takeaways from Analog Devices’ conference call:

• Record third-quarter results exceeded guidance, with revenue of $4.02 billion, up 40% year over year, and adjusted EPS of $3.45, up 68%. Growth was broad-based, led by industrial, automotive, and communications.
• Data center revenue more than doubled year over year in both optical and power, while ADI said its data center and energy serviceable addressable market has more than doubled from its estimate a year ago. Management expects strong double-digit growth in these markets through at least 2030.
• Fourth-quarter guidance calls for revenue of $4.3 billion plus or minus $100 million and adjusted EPS of $3.86 plus or minus $0.15. Operating margin is expected to reach 52%, supported by favorable mix, higher utilization, and previously announced pricing actions.
• Management expressed confidence in fiscal 2027 growth, citing AI infrastructure, aerospace and defense, cyclical recovery, content gains, share gains, and continued Maxim synergies expected to exceed $1 billion in 2027.
• ADI is building inventory and expanding internal and external manufacturing capacity to support accelerating demand, but executives noted potential inflation, geopolitical volatility, macroeconomic risks, and a possible slowdown in AI capital spending.

Analog Devices Stock Performance

Analog Devices stock opened at $370.24 on Friday. The firm has a 50 day simple moving average of $389.14 and a 200-day simple moving average of $371.10. The stock has a market cap of $180.34 billion, a price-to-earnings ratio of 43.92, a price-to-earnings-growth ratio of 0.97 and a beta of 1.20. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.25 and a quick ratio of 1.34. Analog Devices has a 1-year low of $223.47 and a 1-year high of $445.91.

Analog Devices Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a $1.10 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $4.40 annualized dividend and a dividend yield of 1.2%. Analog Devices’s dividend payout ratio is 65.38%.

Insiders Place Their Bets

In related news, CEO Vincent Roche sold 30,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $415.13, for a total value of $12,453,900.00. Following the completion of the transaction, the chief executive officer directly owned 137,538 shares in the company, valued at approximately $57,096,149.94. This represents a 17.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Karen Golz sold 1,000 shares of Analog Devices stock in a transaction on Monday, July 13th. The shares were sold at an average price of $389.83, for a total value of $389,830.00. Following the completion of the sale, the director owned 11,019 shares in the company, valued at $4,295,536.77. This represents a 8.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 75,274 shares of company stock valued at $30,343,386. Insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Analog Devices

Several institutional investors have recently bought and sold shares of ADI. Maia Wealth LLC lifted its stake in Analog Devices by 2.0% in the fourth quarter. Maia Wealth LLC now owns 1,720 shares of the semiconductor company’s stock worth $466,000 after acquiring an additional 34 shares during the period. Financial Engines Advisors L.L.C. lifted its position in shares of Analog Devices by 1.8% in the 4th quarter. Financial Engines Advisors L.L.C. now owns 2,205 shares of the semiconductor company’s stock worth $598,000 after purchasing an additional 39 shares during the period. Hohimer Wealth Management LLC boosted its stake in shares of Analog Devices by 1.4% during the 4th quarter. Hohimer Wealth Management LLC now owns 2,800 shares of the semiconductor company’s stock valued at $759,000 after purchasing an additional 40 shares in the last quarter. Golden State Wealth Management LLC lifted its holdings in Analog Devices by 15.6% in the fourth quarter. Golden State Wealth Management LLC now owns 303 shares of the semiconductor company’s stock worth $82,000 after buying an additional 41 shares during the period. Finally, Jacobi Capital Management LLC lifted its holdings in Analog Devices by 4.5% in the fourth quarter. Jacobi Capital Management LLC now owns 1,002 shares of the semiconductor company’s stock worth $272,000 after buying an additional 43 shares during the period. 86.81% of the stock is owned by institutional investors and hedge funds.

Key Analog Devices News

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: Strong earnings beat and record revenue: Fiscal Q3 revenue rose 39.2% year over year to $4.02 billion, surpassing the $3.92 billion consensus estimate, while adjusted EPS of $3.45 exceeded expectations of approximately $3.33–$3.34. Industrial revenue increased 53% and communications revenue climbed 84%. Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: ADI forecast fiscal Q4 revenue of $4.2 billion to $4.4 billion and EPS of $3.71 to $4.01, ahead of Wall Street estimates. Management said AI infrastructure, data-center power and optical demand should support momentum into fiscal 2027. Analog Devices’ quarterly forecast tops estimates on AI-fueled chip demand
• Positive Sentiment: Analyst target increases: JPMorgan raised its price target to $500 and assigned an Overweight rating. Needham, Susquehanna and TD Cowen also reiterated or issued Buy ratings, with targets ranging from $450 to $475. Analysts cited AI power-management opportunities and a potential data-center buildout of up to 100 gigawatts by 2031. Analysts revise forecasts after Q3 earnings
• Positive Sentiment: AI exposure and shareholder returns: Investors are increasingly viewing ADI as a dividend-paying way to participate in AI infrastructure growth. The company declared a quarterly dividend of $1.10 per share, payable September 15 to shareholders of record September 1. 3 Buy-Rated Dividend Stocks to Play the AI Boom
• Neutral Sentiment: Valuation remains elevated: With a price-to-earnings ratio near 44 and shares below their 50-day moving average, further gains may depend on sustained execution and continued AI demand.
• Negative Sentiment: Risks include multiple contraction and insider selling: One analyst downgraded ADI, warning that valuation compression and concentration in the AI trade could limit upside despite strong fundamentals. Separately, reported insider activity showed selling rather than purchases over the past six months. Analog Devices: The Earnings Reaction Is Sending You a Warning Sign

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on ADI shares. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $550.00 price objective on shares of Analog Devices in a report on Monday. Wall Street Zen raised shares of Analog Devices from a “hold” rating to a “buy” rating in a research note on Sunday, May 24th. Robert W. Baird boosted their price objective on Analog Devices from $365.00 to $450.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Citigroup raised their target price on Analog Devices from $400.00 to $460.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $480.00 price target on shares of Analog Devices in a research report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $447.13.

About Analog Devices

Analog Devices, Inc (NASDAQ: ADI) is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.

The company’s product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.