Analog Devices Inc NASDAQ:ADI Price, Chart, News & Insight

Analog Devices Stock Slips 1% Despite Record Q3 Results and Strong Data Center Growth

Analog Devices (NASDAQ: ADI) shares fell about 1% on Wednesday after the semiconductor company reported record fiscal third-quarter 2026 results, despite strong revenue growth, sharply higher profitability and a record outlook for the fourth quarter.

The modest decline suggests investors may be taking profits or had already priced in a strong semiconductor recovery, as the headline numbers themselves showed considerable operating momentum.

Revenue Jumps 40% as Data Center and Industrial Demand Strengthens

Analog Devices reported third-quarter revenue of $4.02 billion, up 40% from $2.88 billion a year earlier. The company said growth was led by its Data Center and Industrial businesses as demand strengthened across its portfolio and geographic markets.

Profitability improved even faster. GAAP operating income jumped 97% to $1.61 billion, while operating margin expanded to 40.1% from 28.4%. Adjusted operating margin reached 50.0%, up from 42.2% a year earlier.

Adjusted EPS climbed 68% year over year to $3.45, while GAAP diluted EPS increased 163% to $2.74.

Cash generation also remained strong. Analog Devices generated $1.46 billion of free cash flow during the quarter and $4.94 billion over the trailing 12 months. The company returned approximately $1.7 billion to shareholders during Q3 through dividends and share repurchases.

Record Q4 Outlook Points to Continued Momentum

Management indicated that demand continued to strengthen during the quarter and issued what it described as a record fourth-quarter outlook.

For fiscal Q4, Analog Devices expects revenue of approximately $4.3 billion, plus or minus $100 million. Adjusted operating margin is projected at approximately 52%, while adjusted EPS is expected to reach $3.86, plus or minus $0.15.

The outlook indicates that momentum in Analog Devices' semiconductor businesses, particularly areas exposed to data centers and industrial demand, is expected to continue into the end of fiscal 2026.

Why Is ADI Stock Down?

The roughly 1% decline appears notable given the strength of the report. Revenue, margins and earnings all increased substantially, and management expects another record quarter.

The muted market reaction may therefore reflect elevated expectations heading into earnings rather than deterioration in the underlying business. With semiconductor and AI-related stocks already carrying substantial growth expectations, investors may have required an even larger earnings or guidance surprise to push ADI higher.

For investors, the key issue now is whether the strong Data Center and Industrial demand highlighted by management can sustain Analog Devices' current growth rate and expanding margins into fiscal 2027.

💬

Global Finance News 08-19-26

Analog Devices Falls 4.8% Despite Record Quarter as Guidance Fails to Impress

Analog Devices dropped 4.8% today despite reporting what CEO Vincent Roche described as a record quarter, with revenue and earnings both above the high end of guidance — a reaction that reflects a market where exceptional results are increasingly the baseline expectation for semiconductor companies riding the AI infrastructure wave.

Second quarter revenue came in at $3.62 billion, up 37% year over year from $2.64 billion, with growth across all end markets led by Industrial and Communications. Gross margin expanded 630 basis points to 67.3%, and operating income more than doubled to $1.38 billion, with operating margin surging 1,240 basis points to 38.1%. GAAP diluted EPS of $2.40 more than doubled from $1.14 a year ago, while adjusted diluted EPS grew 67% to $3.09. The company returned $1.3 billion to shareholders in the quarter through dividends and buybacks, and generated trailing twelve-month free cash flow of $4.6 billion, representing 36% of revenue.

Record bookings across Industrial, Automotive and Communications end markets gave management confidence to guide for Q3 revenue of $3.9 billion at the midpoint, implying continued strong sequential growth. Adjusted EPS guidance of $3.30 and adjusted operating margin of approximately 49% point to continued profitability expansion.

The selloff appears to be a classic case of buy the rumor, sell the news. With ADI shares having rallied strongly into the print and the broader semiconductor sector trading at elevated multiples, even a genuinely outstanding quarter with strong forward guidance was not sufficient to sustain the pre-earnings momentum. In a market laser-focused on Nvidia's after-market results today, investor attention and capital may simply be rotating toward the single largest AI data point of the quarter rather than reflecting any fundamental concern about Analog Devices' business trajectory.

💬

WS Investor 05-20-26

Analog Devices, Inc. (Nasdaq: ADI) announced it will release financial results for the second quarter fiscal year 2026 at 7:00 a.m. Eastern time on Wednesday, May 20, 2026.

💬

Global Finance News 04-24-26

Analog Devices (Nasdaq: ADI) reported fiscal first quarter 2026 revenue of $3.16 billion, delivering year-over-year growth across all end markets, led by Industrial and Communications.

On a trailing twelve-month basis, the company generated $5.1 billion in operating cash flow and $4.6 billion in free cash flow, representing 43% and 39% of revenue, respectively. During the quarter, ADI returned $1.0 billion to shareholders through dividends and share repurchases and raised its quarterly dividend by 11% to $1.10 per share, marking its 22nd consecutive year of dividend increases.

Management highlighted continued bookings growth, broad strength in Industrial, and record orders in the Data Center segment. Despite ongoing macroeconomic and geopolitical challenges, the company’s second-quarter revenue outlook signals a new high watermark, reflecting strong execution and exposure to both cyclical recovery and long-term secular growth drivers.

Source: PR Newswire

💬

Global Finance News 02-18-26

Analog Devices, Inc. (Nasdaq: ADI ) announced it will release financial results for the first quarter fiscal year 2026 at 7:00 a.m. Eastern time on Wednesday, February 18, 2026

💬

WS Investor 01-24-26

Analog Devices launched ADI Power Studio, a unified suite of tools designed to streamline power management design and optimization. The platform integrates ADI’s well-known design tools, including LTspice, SIMPLIS, LTpowerCAD, and EE-Sim, into a cohesive ecosystem that supports engineers from concept to evaluation.

The release includes two new web-based tools: Power Studio Planner, for system-level power tree planning and efficiency analysis, and Power Studio Designer, for IC-level design with simulation, optimization, and component recommendations. These tools aim to shorten development cycles and improve design accuracy for complex, high-density electronic systems.

💬

WS Investor 10-14-25

Analog Devices Issues $1.5 Billion in Senior Notes

Analog Devices has successfully issued $850 million in senior notes due 2028 and $650 million in senior notes due 2030. The 2028 notes carry a 4.250% annual interest rate, while the 2030 notes bear a 4.500% annual interest rate. Interest on both will be paid semi-annually, starting December 15, 2025.

The notes are unsecured and unsubordinated, with optional redemption features allowing early repayment under specific terms. The proceeds will support general corporate purposes. The issuance was completed through a public offering and underwritten by a syndicate led by BofA Securities.

💬

M

ME NEWS 06-17-25

ADI, TXN named top semiconductor picks by Citi

Investing.com -- Citi analysts have maintained their 2025 semiconductor sales forecast of an 8% year-over-year increase, despite April sales falling below seasonal expectations.

(finance.yahoo.com)

💬

WS News 06-07-25

Analog Devices Reports Strong Q2 2025 Results Amid Growing Demand

On May 22, 2025, Analog Devices, Inc. (NASDAQ: ADI) reported fiscal second quarter results that exceeded guidance, highlighting strong year-over-year growth across all business segments. Revenue for the quarter reached $2.64 billion, a 22% increase from the same period last year, with notable contributions from industrial, automotive, consumer, and communications markets.

Key Financial Highlights (Q2 FY2025):
• Revenue: $2.64 billion (up 22% YoY)
• GAAP diluted EPS: $1.14 (up 87%)
• Adjusted EPS: $1.85 (up 32%)
• Operating margin: 25.7% (GAAP); 41.2% (adjusted)
• Free cash flow: $729 million (28% of revenue)
• $740 million returned to shareholders via dividends and stock repurchases

CEO Vincent Roche cited resilient performance despite global trade volatility, driven by demand at the "AI-driven Intelligent Edge." CFO Richard Puccio noted accelerating bookings across all markets and regions, indicating a cyclical recovery.

End-Market Revenue Breakdown:
• Industrial: $1.16 billion (44% of revenue, +17% YoY)
• Automotive: $849 million (32%, +24% YoY)
• Consumer: $318 million (12%, +30% YoY)
• Communications: $315 million (12%, +32% YoY)

Q3 FY2025 Outlook:
• Revenue: ~$2.75 billion ± $100 million
• GAAP EPS: ~$1.23 ± $0.10
• Adjusted EPS: ~$1.92 ± $0.10
• Operating margin: ~27.2% (GAAP); ~41.5% (adjusted)

The board also declared a quarterly dividend of $0.99 per share, payable June 18, 2025.
ADI emphasized its strong cash generation and continued focus on innovation, which positions it for sustainable long-term growth as digital transformation accelerates across industries.

💬

European Investor 05-22-25

Analog Devices, Inc. to Report Second Quarter Fiscal Year 2025 Financial Results on Thursday, May 22, 2025

💬

The Investor 04-25-25

NASDAQ:ADIFollow

ADI, TXN named top semiconductor picks by Citi

NASDAQ:ADI