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For the fiscal first quarter, Analog Devices expects revenues to be $3.1 billion (+/- $100 million). The Zacks Consensus Estimate for revenues is pegged at $3.12 billion, suggesting growth of 28.67% from the year-ago quarter’s reading.
Analog Devices projects non-GAAP earnings to be $2.29 (+/-$0.10). The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, indicating a rise of 41% from the year-ago quarter’s reported figure. The figure has been revised upward by a penny in the past 30 days.
Image Source: Zacks Investment Research
ADI beat the Zacks Consensus Estimates in each of the trailing four quarters, with an average surprise of 5.83%.
Our proven model predicts an earnings beat for ADI this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($2.34 per share) and the Zacks Consensus Estimate ($2.30 per share), is +1.57%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Analog Devices’ first-quarter performance is likely to have benefited from the secular growth trend across the industrial, communications and consumer end markets. The industrial segment is witnessing strong growth on robust demand from instrumentation, automation, healthcare, aerospace and defense, and energy management companies.
As ADI’s customers keep benefiting from improvements in productivity, efficiency and quality alongside data-driven insights, the industrial automation segment is likely to have experienced continued strong momentum in the to-be-reported quarter.
Analog Devices’ communications segment caters to the development of broadband, wireless and Internet infrastructures. This end market is likely to have benefited from the growing usage of analog and mixed-signal integrated circuits across 5G, satellite and terrestrial broadband, optical and cable networking equipment for data center, carrier and data storage.
The company’s consumer segment is experiencing traction across handsets, gaming, hearables and wearables categories. As Analog Devices develops analog, digital, mixed signal processors and power solutions for personal and professional entertainment systems, and feature-rich consumer products, the traction in consumer electronics is benefiting ADI.
Analog Devices’ Price Performance & Valuation
Analog Devices shares have gained 57.1% over the past year, outperforming the Zacks Semiconductor - Analog and Mixed industry’s 46.4% return.
ADI 12-Month Performance Chart
Image Source: Zacks Investment Research
Let us now look at the value Analog Devices offers to its investors at current levels. ADI is currently trading at a premium with a forward 12-month price-to-sales (P/S) of 12.38X compared with the industry’s 9.55X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for ADI Stock
ADI’s industrial and communication segments have been growing on the back of AI-driven infrastructure demand for the past three quarters. ADI’s industrial segment was driven by traction in automatic test equipment systems, which benefited from the demand for AI chips, broadening ADI’s strong position in the System on Chips and memory test markets.
In the communications segment, Analog Devices experienced strong demand for electro-optical interfaces with 800G moving toward 1.6T, precision power management, protection, and monitoring. ADI’s management reported that its data center business surpassed the $1 billion run rate in the fourth quarter of fiscal 2025 on the back of AI infrastructure growth.
ADI’s fiscal 2025 non-GAAP operating margin came in at 41.9%, up 20% year over year. ADI’s margins are expanding despite the rise in operating expenditure, capital expenditure and strong competitive pressure from companies, including Texas Instruments (TXN - Free Report) , STMicroelectronics (STM - Free Report) and NXP Semiconductors (NXPI - Free Report) . Texas Instruments competes with ADI in analog, digital and mixed signal chains, precision sensing, and power management for consumer electronics products.
NXP Semiconductor is one of the leading solution providers of analog and mixed-signal chips serving mobile, connectivity, and consumer applications, serving front-end, power management, and mixed signal for consumer devices, especially in mobile and IOT markets. Texas Instruments serves the auto market with its analog sensors, power ICs, in-vehicle networking/signal chain, and driver assistance electronics.
STMicroelectronics competes with ADI with its sensors, such as MEMS and inertial, analog front ends, interface ICs, and microcontrollers. Although intense competition from major players pushed ADI to increase its research & development and sales & marketing spending at double-digit rates, the company’s strong revenue growth has helped protect its margins.
Conclusion: Buy ADI Stock Now
Analog Devices’ strong stock performance reflects accelerating AI-driven growth, broad-based segment strength, and resilient margins despite rising competition. With robust revenue momentum, expanding data center exposure, and upward earnings revisions, ADI stock is a buy now.
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Analog Devices to Report Q1 Earnings: What's in Store for the Stock?
Key Takeaways
Analog Devices (ADI - Free Report) is scheduled to report first-quarter fiscal 2026 results on Feb. 18.
For the fiscal first quarter, Analog Devices expects revenues to be $3.1 billion (+/- $100 million). The Zacks Consensus Estimate for revenues is pegged at $3.12 billion, suggesting growth of 28.67% from the year-ago quarter’s reading.
Analog Devices projects non-GAAP earnings to be $2.29 (+/-$0.10). The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, indicating a rise of 41% from the year-ago quarter’s reported figure. The figure has been revised upward by a penny in the past 30 days.
Image Source: Zacks Investment Research
ADI beat the Zacks Consensus Estimates in each of the trailing four quarters, with an average surprise of 5.83%.
Analog Devices, Inc. Price and EPS Surprise
Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. Quote
Earnings Whispers for ADI
Our proven model predicts an earnings beat for ADI this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($2.34 per share) and the Zacks Consensus Estimate ($2.30 per share), is +1.57%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: ADI carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Consider for ADI Stock
Analog Devices’ first-quarter performance is likely to have benefited from the secular growth trend across the industrial, communications and consumer end markets. The industrial segment is witnessing strong growth on robust demand from instrumentation, automation, healthcare, aerospace and defense, and energy management companies.
As ADI’s customers keep benefiting from improvements in productivity, efficiency and quality alongside data-driven insights, the industrial automation segment is likely to have experienced continued strong momentum in the to-be-reported quarter.
Analog Devices’ communications segment caters to the development of broadband, wireless and Internet infrastructures. This end market is likely to have benefited from the growing usage of analog and mixed-signal integrated circuits across 5G, satellite and terrestrial broadband, optical and cable networking equipment for data center, carrier and data storage.
The company’s consumer segment is experiencing traction across handsets, gaming, hearables and wearables categories. As Analog Devices develops analog, digital, mixed signal processors and power solutions for personal and professional entertainment systems, and feature-rich consumer products, the traction in consumer electronics is benefiting ADI.
Analog Devices’ Price Performance & Valuation
Analog Devices shares have gained 57.1% over the past year, outperforming the Zacks Semiconductor - Analog and Mixed industry’s 46.4% return.
ADI 12-Month Performance Chart
Image Source: Zacks Investment Research
Let us now look at the value Analog Devices offers to its investors at current levels. ADI is currently trading at a premium with a forward 12-month price-to-sales (P/S) of 12.38X compared with the industry’s 9.55X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for ADI Stock
ADI’s industrial and communication segments have been growing on the back of AI-driven infrastructure demand for the past three quarters. ADI’s industrial segment was driven by traction in automatic test equipment systems, which benefited from the demand for AI chips, broadening ADI’s strong position in the System on Chips and memory test markets.
In the communications segment, Analog Devices experienced strong demand for electro-optical interfaces with 800G moving toward 1.6T, precision power management, protection, and monitoring. ADI’s management reported that its data center business surpassed the $1 billion run rate in the fourth quarter of fiscal 2025 on the back of AI infrastructure growth.
ADI’s fiscal 2025 non-GAAP operating margin came in at 41.9%, up 20% year over year. ADI’s margins are expanding despite the rise in operating expenditure, capital expenditure and strong competitive pressure from companies, including Texas Instruments (TXN - Free Report) , STMicroelectronics (STM - Free Report) and NXP Semiconductors (NXPI - Free Report) . Texas Instruments competes with ADI in analog, digital and mixed signal chains, precision sensing, and power management for consumer electronics products.
NXP Semiconductor is one of the leading solution providers of analog and mixed-signal chips serving mobile, connectivity, and consumer applications, serving front-end, power management, and mixed signal for consumer devices, especially in mobile and IOT markets. Texas Instruments serves the auto market with its analog sensors, power ICs, in-vehicle networking/signal chain, and driver assistance electronics.
STMicroelectronics competes with ADI with its sensors, such as MEMS and inertial, analog front ends, interface ICs, and microcontrollers. Although intense competition from major players pushed ADI to increase its research & development and sales & marketing spending at double-digit rates, the company’s strong revenue growth has helped protect its margins.
Conclusion: Buy ADI Stock Now
Analog Devices’ strong stock performance reflects accelerating AI-driven growth, broad-based segment strength, and resilient margins despite rising competition. With robust revenue momentum, expanding data center exposure, and upward earnings revisions, ADI stock is a buy now.