Analog Devices (NASDAQ:ADI) Posts Earnings Results

Analog Devices (NASDAQ:ADI) announced its earnings results on Wednesday. The semiconductor company reported $2.46 EPS for the quarter, topping the consensus estimate of $2.31 by $0.15, FiscalAI reports. The company had revenue of $3.16 billion for the quarter, compared to analysts’ expectations of $3.10 billion. Analog Devices had a net margin of 20.58% and a return on equity of 11.23%. The business’s revenue for the quarter was up 30.4% on a year-over-year basis. During the same period last year, the firm earned $1.63 earnings per share. Analog Devices updated its Q2 2026 guidance to 2.730-3.030 EPS.

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

• ADI beat guidance in Q1 with revenue $3.16B, EPS $2.46, strong margins (71.2% gross, 45.5% operating), and announced an 11% dividend increase while reiterating the policy to return 100% of free cash flow over time.
• AI-related businesses are a major driver—ATE and data center solutions now comprise roughly ~20% of revenue (>$2B run rate)—with ATE and data center growing ~40% and ~50% in FY25 respectively and continuing to accelerate.
• Industrial demand is broad-based and strong (47% of revenue, up 38% YoY), management expects industrial to rise ~20% sequentially in Q2 with book-to-bill >1 and no evidence of customer restocking.
• Recent pricing actions account for about one-third of Q2’s sequential revenue uplift, but ~50 bps of that was a one‑time channel repricing (won’t repeat in Q3); management expects modest additional price benefit (~50 bps) in each of Q3 and Q4.
• Automotive remains a near-term headwind (25% of revenue, down 8% sequentially) due to tariff-related pull-in unwind and China seasonality, with Q2 expected flat-to-down before recovery in H2.

Analog Devices Trading Down 0.5%

Shares of NASDAQ:ADI traded down $1.69 during midday trading on Thursday, hitting $344.68. 1,536,788 shares of the stock were exchanged, compared to its average volume of 4,037,303. The business’s 50-day moving average price is $299.67 and its 200 day moving average price is $263.17. Analog Devices has a 12 month low of $158.65 and a 12 month high of $355.36. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.68 and a current ratio of 2.19. The stock has a market capitalization of $168.42 billion, a price-to-earnings ratio of 75.81, a P/E/G ratio of 1.93 and a beta of 1.03.

Analog Devices Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd will be issued a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a dividend yield of 1.3%. This is an increase from Analog Devices’s previous quarterly dividend of $0.99. The ex-dividend date is Tuesday, March 3rd. Analog Devices’s dividend payout ratio (DPR) is presently 86.84%.

Insider Activity

In related news, SVP Martin Cotter sold 10,000 shares of the firm’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $278.44, for a total transaction of $2,784,400.00. Following the completion of the transaction, the senior vice president directly owned 49,664 shares of the company’s stock, valued at $13,828,444.16. This trade represents a 16.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ray Stata sold 3,125 shares of Analog Devices stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $317.30, for a total value of $991,562.50. Following the transaction, the director directly owned 123,821 shares in the company, valued at $39,288,403.30. The trade was a 2.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 53,544 shares of company stock worth $15,320,417. Company insiders own 0.36% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Maia Wealth LLC grew its stake in Analog Devices by 2.0% during the fourth quarter. Maia Wealth LLC now owns 1,720 shares of the semiconductor company’s stock worth $466,000 after purchasing an additional 34 shares during the period. Financial Engines Advisors L.L.C. lifted its stake in Analog Devices by 1.8% in the fourth quarter. Financial Engines Advisors L.L.C. now owns 2,205 shares of the semiconductor company’s stock valued at $598,000 after buying an additional 39 shares during the period. Hohimer Wealth Management LLC boosted its holdings 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 worth $759,000 after buying an additional 40 shares in the last quarter. Golden State Wealth Management LLC grew its position in shares of Analog Devices by 15.6% during the 4th 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 grew its position in shares of Analog Devices by 4.5% during the 4th 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.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Stifel Nicolaus set a $405.00 price objective on shares of Analog Devices in a research report on Wednesday. Benchmark upped their price target on shares of Analog Devices from $285.00 to $400.00 and gave the stock a “buy” rating in a report on Thursday. Wall Street Zen upgraded shares of Analog Devices from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Oppenheimer restated an “outperform” rating and set a $400.00 price objective on shares of Analog Devices in a research report on Thursday. Finally, Robert W. Baird lifted their price target on Analog Devices from $250.00 to $275.00 and gave the company an “outperform” rating in a research note on Wednesday, November 26th. Three research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $360.16.

Key Stories Impacting Analog Devices

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

• Positive Sentiment: Q1 results beat: ADI reported adjusted EPS $2.46 vs. $2.31 consensus and revenue $3.16B (+30% YoY), with margin expansion and strong cash flow—key reason for the rally. Press Release: Fiscal Q1 2026 Results
• Positive Sentiment: Very strong Q2 guidance and AI/datacenter demand: management guided Q2 EPS $2.73–3.03 and revenue ~$3.4–3.6B—well above Street estimates—and flagged record data-center orders and broad industrial bookings (AI tailwind). Reuters: ADI sees strong Q2 as AI boom fuels chip sales
• Positive Sentiment: Shareholder returns lifted: board raised the quarterly dividend 11% to $1.10 and returned ~$1.0B via buybacks/dividends in the quarter—supports investor confidence and yield narrative. PR Newswire: Dividend Increase
• Positive Sentiment: Analyst optimism: multiple firms raised ratings/targets (Needham upgraded to Buy, Stifel and Cantor among those lifting targets toward the $360–$400 range), reinforcing momentum. The Fly: Needham upgrade
• Neutral Sentiment: Market/analyst commentary frames ADI as an AI/datacenter beneficiary while noting industrial recovery and eventual automotive upside—positive secular drivers but execution still matters. Seeking Alpha: AI narrative analysis
• Negative Sentiment: Caution — high valuation and insider selling: ADI trades at an elevated P/E (background data ~76.7) and some recent insider sales are documented, which could cap upside if growth slows or profit-taking emerges. QuiverQuant: Coverage including insider activity

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.