Analog Devices Inc.
ADIFinancial 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.