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For the fiscal second quarter, Analog Devices expects revenues to be $3.5 billion (+/- $100 million). The Zacks Consensus Estimate for revenues is pegged at $3.51 billion, suggesting growth of 33% from the year-ago quarter’s figure.
Analog Devices projects non-GAAP earnings to be $2.88 (+/-$0.10). The Zacks Consensus Estimate for earnings is pegged at $2.89 per share, indicating a rise of 56% from the year-ago quarter’s reported figure. The figure has remained unchanged in the past 30 days. Estimates for second-quarter fiscal 2026 earnings have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
ADI beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6.11%.
Our proven model does not conclusively predict an earnings beat for Analog Devices this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though ADI carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Analog Devices is experiencing strong momentum across all end markets. ADI’s AI data center buildouts and cyclical improvement have aided its Industrial and communications segments in the past few quarters. Additional support from a strong demand for advanced sensors, mixed-signal and power solutions in aerospace and defense is likely to aid the company in the to-be-reported quarter.
ADI is enjoying the traction for its products in automated test equipment and data center applications, while electro-optical interfaces, precision power management, protection and monitoring continued to benefit from the shift from 800G toward 1.6T networks. This trend is likely to have persisted in the to-be-reported quarter.
Energy transition demand among enterprises and institutions for grid management and battery storage systems to improve energy generation, transmission and distribution has also resulted in traction in ADI’s chips. ADI’s data center business has been growing in double digits year over year for the past four quarters.
The company expects AI-driven advancements, including the development of more capable and content-rich humanoid robots, to create significant long-term growth opportunities and further strengthen ADI’s position in the robotics market. This is going to reflect in ADI’s second-quarter fiscal 2026 results as well.
Adoption of higher-voltage architectures, mainly 48V and 54V, and vertical power is expanding its serviceable market, while DC power control and multiphase controllers enable efficient GPU and CPU power regulation. Optical connectivity is another tailwind in the to-be-reported quarter as AI networking shifts toward optical circuit switching.
Analog Devices’ Price Performance & Valuation
Analog Devices shares have gained 53.9% over the past year, underperforming the Zacks Semiconductor - Analog and Mixed industry’s return of 62%.
ADI YTD 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 13.97X compared with the industry’s 10.85X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
ADI’s Investment Thesis
Analog Devices presents a compelling investment case built on technological leadership, diversified exposure to high-growth markets, and a resilient operating model. ADI’s positioning at the heart of several enduring secular trends, including artificial intelligence infrastructure, industrial automation, robotics, advanced communications, electric vehicles, aerospace systems and intelligent energy management.
Rather than relying on a single end market, the company benefits from broad exposure across industries where analog and mixed-signal semiconductors remain mission-critical. This diversification strengthens revenue durability and reduces dependence on short-term demand cycles. Increasing electronic content in vehicles, expanding electric vehicle adoption, and stricter safety and efficiency requirements support growing demand for the company’s precision technologies in the long run.
ADI’s major pillar of growth is its industrial segment, where increasing factory automation, decentralized intelligence, and robotics adoption are driving demand for high-performance sensing, connectivity and power solutions. The growing complexity of humanoid robotics and AI-enabled automation could meaningfully expand semiconductor content per machine, creating a long runway for sustained growth.
Another key driver is the acceleration of AI infrastructure spending. The company’s technologies play an essential role in enabling faster and more efficient data transmission across hyperscale data centers and communications networks. As enterprises and cloud providers continue expanding AI capabilities, Analog Devices is positioned to benefit from the rising demand for advanced connectivity and signal processing solutions.
ADI’s competitors include 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, and providing 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 appears well-positioned ahead of its second-quarter fiscal 2026 results, supported by sustained momentum across industrial, communications, aerospace, defense, robotics and energy infrastructure markets. Expanding AI data center deployments, increasing adoption of advanced networking technologies and rising demand for power management and optical connectivity solutions are expected to remain key growth drivers. Given these dynamics, we suggest that investors should buy ADI stock for the long term.
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Should You Buy, Sell or Hold ADI Stock Before Q2 Earnings?
Key Takeaways
Analog Devices (ADI - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 20, 2026, after market close.
For the fiscal second quarter, Analog Devices expects revenues to be $3.5 billion (+/- $100 million). The Zacks Consensus Estimate for revenues is pegged at $3.51 billion, suggesting growth of 33% from the year-ago quarter’s figure.
Analog Devices projects non-GAAP earnings to be $2.88 (+/-$0.10). The Zacks Consensus Estimate for earnings is pegged at $2.89 per share, indicating a rise of 56% from the year-ago quarter’s reported figure. The figure has remained unchanged in the past 30 days. Estimates for second-quarter fiscal 2026 earnings have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
ADI beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6.11%.
Analog Devices, Inc. Price and EPS Surprise
Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. Quote
Earnings Whispers for ADI
Our proven model does not conclusively predict an earnings beat for Analog Devices this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though ADI carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note Ahead of ADI’s Q2 Results
Analog Devices is experiencing strong momentum across all end markets. ADI’s AI data center buildouts and cyclical improvement have aided its Industrial and communications segments in the past few quarters. Additional support from a strong demand for advanced sensors, mixed-signal and power solutions in aerospace and defense is likely to aid the company in the to-be-reported quarter.
ADI is enjoying the traction for its products in automated test equipment and data center applications, while electro-optical interfaces, precision power management, protection and monitoring continued to benefit from the shift from 800G toward 1.6T networks. This trend is likely to have persisted in the to-be-reported quarter.
Energy transition demand among enterprises and institutions for grid management and battery storage systems to improve energy generation, transmission and distribution has also resulted in traction in ADI’s chips. ADI’s data center business has been growing in double digits year over year for the past four quarters.
The company expects AI-driven advancements, including the development of more capable and content-rich humanoid robots, to create significant long-term growth opportunities and further strengthen ADI’s position in the robotics market. This is going to reflect in ADI’s second-quarter fiscal 2026 results as well.
Adoption of higher-voltage architectures, mainly 48V and 54V, and vertical power is expanding its serviceable market, while DC power control and multiphase controllers enable efficient GPU and CPU power regulation. Optical connectivity is another tailwind in the to-be-reported quarter as AI networking shifts toward optical circuit switching.
Analog Devices’ Price Performance & Valuation
Analog Devices shares have gained 53.9% over the past year, underperforming the Zacks Semiconductor - Analog and Mixed industry’s return of 62%.
ADI YTD 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 13.97X compared with the industry’s 10.85X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
ADI’s Investment Thesis
Analog Devices presents a compelling investment case built on technological leadership, diversified exposure to high-growth markets, and a resilient operating model. ADI’s positioning at the heart of several enduring secular trends, including artificial intelligence infrastructure, industrial automation, robotics, advanced communications, electric vehicles, aerospace systems and intelligent energy management.
Rather than relying on a single end market, the company benefits from broad exposure across industries where analog and mixed-signal semiconductors remain mission-critical. This diversification strengthens revenue durability and reduces dependence on short-term demand cycles. Increasing electronic content in vehicles, expanding electric vehicle adoption, and stricter safety and efficiency requirements support growing demand for the company’s precision technologies in the long run.
ADI’s major pillar of growth is its industrial segment, where increasing factory automation, decentralized intelligence, and robotics adoption are driving demand for high-performance sensing, connectivity and power solutions. The growing complexity of humanoid robotics and AI-enabled automation could meaningfully expand semiconductor content per machine, creating a long runway for sustained growth.
Another key driver is the acceleration of AI infrastructure spending. The company’s technologies play an essential role in enabling faster and more efficient data transmission across hyperscale data centers and communications networks. As enterprises and cloud providers continue expanding AI capabilities, Analog Devices is positioned to benefit from the rising demand for advanced connectivity and signal processing solutions.
ADI’s competitors include 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, and providing 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 appears well-positioned ahead of its second-quarter fiscal 2026 results, supported by sustained momentum across industrial, communications, aerospace, defense, robotics and energy infrastructure markets. Expanding AI data center deployments, increasing adoption of advanced networking technologies and rising demand for power management and optical connectivity solutions are expected to remain key growth drivers. Given these dynamics, we suggest that investors should buy ADI stock for the long term.