Analog Devices Inc.

ADI
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$3.2B
Q1 FY2026 · +30.4% YoY
TTM ROIC
13.6%
FY2025 · NOPAT / Average Invested Capital (book-value approach); Adj NOPAT = Adj Operating Income × (1 - effective tax rate) · WACC ~8.75% · Moat spread +4.6pp

Financial Snapshot


ticker: ADI step: 04 generated: 2026-05-12 source: quick-research

Analog Devices, Inc. (ADI) — Financial Snapshot

(ADI's fiscal year ends in late October/early November; FY2025 = year ending ~Nov 2025.)

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Revenue $12.3B $9.43B (cyclical trough) $11.05B +17%
Gross Margin ~70% 67.9% 69.3% +140 bps
Adjusted Operating Margin ~46% ~41% ~43% +200 bps
Q4 FY25 Operating Margin ~41% 43.5% +240 bps YoY
Adjusted Diluted EPS $10.32 $6.38 $7.50+ +17%
Q4 FY25 Adjusted EPS $1.67 $2.26 +35% YoY

Segment Detail (FY2025 — Q4 / Q1 FY26 trajectory)

Segment FY25 / Q1 FY26 Trends YoY
Industrial ~47% of sales +38% YoY (Q4); +25%+ every sub-segment
Communications 15% of sales (Q1 FY26) +63% YoY (Q1 FY26); data center driven
Consumer ~13% of sales Mid-teens recovery
Automotive ~25% of sales -8% sequential; tariff-driven softness

Cash Flow & Capital Allocation (FY2025)

Metric Value
Operating Cash Flow $4.8B
Capital Expenditures $0.5B (asset-light fabless+)
Free Cash Flow >$4.0B (39% of revenue)
Capital Returned to Shareholders $4.1B (dividends + buybacks)
Dividend Increase +8% (FY25)
Quarterly Dividend $0.99
Annual Dividend $3.96
Dividend Yield ~1.6%
Cash & Marketable Securities ~$2.5B
Total Debt ~$8B
Net Debt / EBITDA ~1.3x

Q1 FY2026 Guidance (Actual)

Metric Q1 FY26
Revenue $3.1B ± $100M
Operating Margin 43.5% ± 100 bps
EPS $2.29 ± $0.10

Key Ratios (approximate)

  • P/E: ~30x (FY26E EPS ~$9.50) | EV/EBITDA: ~22x | FCF Yield: ~3.6%
  • Revenue Growth (FY25): +17% recovery
  • Adjusted Operating Margin: 43–44% (industry-leading among analog peers)
  • FCF Margin: 39% (record)
  • Dividend Yield: ~1.6% | Capital Return Yield: ~3.5%
  • Net Debt / EBITDA: ~1.3x

Growth Profile

FY25 marked the inflection: revenue +17% recovery from cyclical trough; gross margin expanded 140 bps; operating margin expanded 200 bps; record FCF $4B (39% of revenue). The cyclical recovery story is broad-based:

Industrial (~47% of sales, +38% YoY Q4 FY25) — Factory automation + instrumentation + healthcare + aerospace/defense all recovering simultaneously after 2023–24 inventory destocking cycle.

Communications (+63% YoY Q1 FY26) — Data center demand (optical interconnect + power management for AI servers) is structural growth driver. Three consecutive quarters of double-digit wireless growth.

Consumer + Automotive — Mixed recovery; auto softening on tariff impacts.

The FY26 guide (Q1: $3.1B + 43.5% operating margin + $2.29 EPS) implies continued mid-teens revenue growth + ongoing margin expansion. ADI is widely viewed as the 2026 semiconductor cyclical recovery bellwether — when ADI accelerates, the broader chip cycle is recovering.

Forward Estimates

FY2026 Consensus:

  • Revenue: ~$12.5–13.0B (+13–18%)
  • Adjusted EPS: ~$9.50–10.50 (+27–40%)

Bull case: AI data center demand continues +50%+; industrial recovery cycle has multi-year runway from depressed base; automotive recovers H2 2026; consumer rebounds with smartphone refresh; EPS reaches $11–12 by FY27; multiple expands to 33x P/E. Bear case: Auto-tariff drag worsens; industrial pause after initial recovery; consumer remains weak; AI infrastructure capex slows; multiple compresses to 25x P/E. Consensus targets ~$280–320 vs. trading ~$220–240 (~20–35% implied upside).

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $ADI.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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