ANALOG DEVICES, INC.

Recommendation history

• Q2 2026BuyBuy: ADI delivered a broad-based beat with Q2 revenue of $3.62 billion, up 37% year over year, operating margin of 49%, and adjusted EPS of $3.09, up 67%. Q3 guidance of $3.9 billion ±$100 million and adjusted EPS of $3.30 ±$0.15 implies continued momentum, led by data center, Industrial, and Automotive; the key tension is that gross margin is likely near-term capped around 72.5% as utilization is already high.
• Q1 2026BuyBuy. Analog Devices delivered $3.16B of Q1 revenue, up 30% year over year, with 71.2% gross margin, 45.5% operating margin, and $2.46 adjusted EPS; Q2 guidance of $3.5B revenue, 47.5% operating margin, and $2.88 adjusted EPS points to continued acceleration. The main bull case is broad industrial recovery plus AI exposure—ATE and data center are now roughly 20% of revenue and over a $2B run rate—while the key tension is that growth is occurring without customer restocking, with auto weak and part of Q2’s pricing benefit nonrecurring.
• 2025-12-02BuyBuy: ADI described a broad recovery with company-wide book-to-bill above 1, Q1 guidance above seasonal, and data-center revenue growth of 50% year over year for three consecutive quarters. The strongest growth engines are AI-related test and communications, aerospace and defense, and high-content China auto; the key tension is that management still lacks visibility for a formal FY26 outlook and China’s local displacement risk remains unresolved.
• Q4 2025BuyBuy: ADI exited FY25 with strong momentum—Q4 revenue was $3.08B (+26% YoY), EPS $2.26 (+35%), and FY25 free cash flow reached $4.3B, or 39% of revenue. Q1 FY26 guidance of $3.1B ±$100M revenue, 43.5% ±100bp operating margin, and $2.29 ±$0.10 adjusted EPS supports continued recovery, led by AI data center, ATE, and industrial demand; the main tension is limited visibility, tariff-sensitive auto demand, and gross margin remaining around 70%.
• 2025-09-04BuyBuy: ADI’s cyclical recovery is broadening, with industrial growth now spanning all end markets and geographies, Q4 expected to be materially above normal seasonality, and gross margin guided back to 70%. The key tension is limited visibility—mostly in-quarter despite three quarters of rising backlog—plus a Q4 auto pull-in correction, mixed PMIs, tariff uncertainty, and an approximately 150-basis-point depreciation headwind from the resiliency build.
• Q3 2025BuyBUY: ADI delivered a strong recovery quarter, with Q3 revenue of $2.88 billion (+25% year over year), adjusted EPS of $2.05 (+30%), and Q4 guidance of $3.0 billion revenue and $2.22 EPS. Industrial growth is broad and channel inventories remain lean, supporting further upside, although the Q4 automotive decline from pull-ins and tariff uncertainty temper the outlook.
• Q2 2025BuyBuy: ADI delivered a strong recovery signal, with Q2 revenue of $2.64 billion, up 9% sequentially and 22% year over year, while all end markets grew sequentially and bookings exceeded parity. Q3 guidance of $2.75 billion +/- $100 million and adjusted EPS of $1.92 +/- $0.10 supports continued momentum, particularly in industrial; the key tension is that automotive’s 16% sequential surge included an estimated high-single-digit pull-in, while tariffs remain a material uncertainty.