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Analog Devices Q1 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
Analog Devices posted Q1 EPS of $2.46 on $3.16B revenues, both above estimates and up sharply Y/Y.
ADI saw strong growth in Communications and Industrial, with gross margins expanding to 71.2%.
Analog Devices guided Q2 revenues around $3.5B and adjusted EPS near $2.88 per share.
Analog Devices (ADI - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of $2.46 per share, which beat the Zacks Consensus Estimate by 6.5%. This company reported earnings of $1.63 per share in the year-ago period.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.2%.
Analog Devices’ first-quarter fiscal 2026 revenues of $3.16 billion surpassed the Zacks Consensus Estimate by 1.3%. The top line increased 30% from the year-ago quarter’s revenues of $2.42 billion.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Industrial: Revenues from this segment were $1.49 billion, representing 47% of total revenues and reflecting 38% year-over-year growth.
Automotive: Revenues reached $794.4 million (or 25% of total revenue), up 8% year over year.
Communications: Revenues came in at $476.8 million, accounting for 15% of total revenues and rising 63% year over year.
Consumer: The segment generated $399.8 million (or 13% of revenues), marking a 27% increase compared with the same quarter last year.
The adjusted gross margin expanded 240 basis points to 71.2%, while the adjusted operating margin was 45.5%, up 500 basis points year over year.
ADI’s Balance Sheet and Cash Flows
As of Jan. 31, 2026, cash and cash equivalents were approximately $2.91 billion, up from $2.5 billion as of Nov. 1, 2025. The company also held $1.14 billion in short-term investments during the first quarter.
Long-term debt was $7.24 billion compared with $8.15 billion at the end of the previous quarter.
Analog Devices generated $1.37 billion in operating cash flow and $1.26 billion in free cash flow during the first quarter of fiscal 2026.
In the fiscal first quarter, the company returned $1 billion to shareholders, comprising $484 million in dividends and $516 million in share repurchases.
ADI Initiates Q2 FY26 Guidance
For the second quarter of fiscal 2026, management expects revenues of $3.5 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.21 billion, indicating year-over-year growth of 20.7%.
The company projects a reported operating margin of approximately 36.4% (+/-150 bps) and an adjusted operating margin of about 47.5% (+/-100 bps).
Reported earnings are anticipated to be $2.19 (+/-$0.15) per share, while adjusted earnings are expected to be $2.88 (+/-$0.15) per share. The consensus mark for the same is pinned at $2.45 per share.
The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings is pegged at $5.26 per share, revised upward by 8.9% over the past 30 days and suggests a year-over-year increase of 27.1%. Lam Research shares have soared 169.7% over the past year.
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings has moved upward by 10.5% over the past seven days to $10.63 per share, calling for an increase of 12.9% year over year. Applied Materials shares have climbed 109.9% in trailing 12 months.
The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings has been revised upward to $8.20 per share from $7.86 over the past seven days. Advanced Energy Industries shares have surged 146.8% over the past year.
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Analog Devices Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Analog Devices (ADI - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of $2.46 per share, which beat the Zacks Consensus Estimate by 6.5%. This company reported earnings of $1.63 per share in the year-ago period.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.2%.
Analog Devices’ first-quarter fiscal 2026 revenues of $3.16 billion surpassed the Zacks Consensus Estimate by 1.3%. The top line increased 30% from the year-ago quarter’s revenues of $2.42 billion.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Analog Devices’ Q1 Details
Industrial: Revenues from this segment were $1.49 billion, representing 47% of total revenues and reflecting 38% year-over-year growth.
Automotive: Revenues reached $794.4 million (or 25% of total revenue), up 8% year over year.
Communications: Revenues came in at $476.8 million, accounting for 15% of total revenues and rising 63% year over year.
Consumer: The segment generated $399.8 million (or 13% of revenues), marking a 27% increase compared with the same quarter last year.
The adjusted gross margin expanded 240 basis points to 71.2%, while the adjusted operating margin was 45.5%, up 500 basis points year over year.
ADI’s Balance Sheet and Cash Flows
As of Jan. 31, 2026, cash and cash equivalents were approximately $2.91 billion, up from $2.5 billion as of Nov. 1, 2025. The company also held $1.14 billion in short-term investments during the first quarter.
Long-term debt was $7.24 billion compared with $8.15 billion at the end of the previous quarter.
Analog Devices generated $1.37 billion in operating cash flow and $1.26 billion in free cash flow during the first quarter of fiscal 2026.
In the fiscal first quarter, the company returned $1 billion to shareholders, comprising $484 million in dividends and $516 million in share repurchases.
ADI Initiates Q2 FY26 Guidance
For the second quarter of fiscal 2026, management expects revenues of $3.5 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.21 billion, indicating year-over-year growth of 20.7%.
The company projects a reported operating margin of approximately 36.4% (+/-150 bps) and an adjusted operating margin of about 47.5% (+/-100 bps).
Reported earnings are anticipated to be $2.19 (+/-$0.15) per share, while adjusted earnings are expected to be $2.88 (+/-$0.15) per share. The consensus mark for the same is pinned at $2.45 per share.
Zacks Rank & Other Stocks to Consider
Currently, ADI carries a Zacks Rank #2 (Buy).
Lam Research (LRCX - Free Report) , Applied Materials (AMAT - Free Report) and Advanced Energy Industries (AEIS - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Lam Research, Applied Materials and Advanced Energy Industries sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings is pegged at $5.26 per share, revised upward by 8.9% over the past 30 days and suggests a year-over-year increase of 27.1%. Lam Research shares have soared 169.7% over the past year.
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings has moved upward by 10.5% over the past seven days to $10.63 per share, calling for an increase of 12.9% year over year. Applied Materials shares have climbed 109.9% in trailing 12 months.
The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings has been revised upward to $8.20 per share from $7.86 over the past seven days. Advanced Energy Industries shares have surged 146.8% over the past year.