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Analog Devices Q2 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
Analog Devices posted Q2 EPS of $3.09 on $3.62B revenues, both above estimates and up sharply Y/Y.
ADI saw strong growth in Communications and Industrial, with gross margins expanding to 73%.
Analog Devices guided Q3 revenues around $3.9B and adjusted EPS near $3.30 per share.
Analog Devices (ADI - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of $3.09 per share, which beat the Zacks Consensus Estimate by 6.9%. The company reported earnings of $1.85 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 5.5%.
Analog Devices’ second-quarter fiscal 2026 revenues of $3.62 billion surpassed the Zacks Consensus Estimate of $3.51 billion. The top line increased 37% from the year-ago quarter’s revenues of $2.64 billion.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Industrial: Revenues from this segment were $1.80 billion, representing 50% of total revenues and reflecting 56% year-over-year growth.
Automotive: Revenues reached $871.6 million (or 24% of total revenue), up 2% year over year.
Communications: Revenues came in at $554.7 million, accounting for 15% of total revenues and rising 79% year over year.
Consumer: The segment generated $397.8 million (or 11% of revenues), marking a 23% increase compared with the same quarter last year.
The adjusted gross margin expanded 360 basis points to 73%, while the adjusted operating margin was 49%, up 780 basis points year over year.
ADI’s Balance Sheet and Cash Flows
As of May 2, 2026, cash and cash equivalents were approximately $2.44 billion, down from $2.91 billion as of Jan. 31, 2026. The company also held $1 billion in short-term investments during the second quarter.
Long-term debt was $7.235 billion compared with $7.24 billion at the end of the previous quarter.
Analog Devices generated $872 million in operating cash flow and $734 million in free cash flow during the second quarter of fiscal 2026.
In the fiscal second quarter, the company returned $1.31 billion to shareholders, comprising $536 million in dividends and $773 million in share repurchases.
ADI Initiates Q3 FY26 Guidance
For the third quarter of fiscal 2026, management expects revenues to be $3.9 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.61 billion, indicating year-over-year growth of 20.7%.
The company projects a reported operating margin of approximately 39% (+/-150 bps) and an adjusted operating margin of about 49% (+/-100 bps).
Reported earnings are anticipated to be $2.60 (+/-$0.15) per share, while adjusted earnings are expected to be $3.30 (+/-$0.15) per share. The consensus mark for the same is pinned at $2.96 per share.
Shares of Broadcom have gained 18.8% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.47 per share, up by 2 cents over the past seven days, indicating a year-over-year surge of 68.2%.
Shares of Celestica have gained 14.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 11.7% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
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Analog Devices Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Analog Devices (ADI - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of $3.09 per share, which beat the Zacks Consensus Estimate by 6.9%. The company reported earnings of $1.85 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 5.5%.
Analog Devices’ second-quarter fiscal 2026 revenues of $3.62 billion surpassed the Zacks Consensus Estimate of $3.51 billion. The top line increased 37% from the year-ago quarter’s revenues of $2.64 billion.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Analog Devices’ Q2 Details
Industrial: Revenues from this segment were $1.80 billion, representing 50% of total revenues and reflecting 56% year-over-year growth.
Automotive: Revenues reached $871.6 million (or 24% of total revenue), up 2% year over year.
Communications: Revenues came in at $554.7 million, accounting for 15% of total revenues and rising 79% year over year.
Consumer: The segment generated $397.8 million (or 11% of revenues), marking a 23% increase compared with the same quarter last year.
The adjusted gross margin expanded 360 basis points to 73%, while the adjusted operating margin was 49%, up 780 basis points year over year.
ADI’s Balance Sheet and Cash Flows
As of May 2, 2026, cash and cash equivalents were approximately $2.44 billion, down from $2.91 billion as of Jan. 31, 2026. The company also held $1 billion in short-term investments during the second quarter.
Long-term debt was $7.235 billion compared with $7.24 billion at the end of the previous quarter.
Analog Devices generated $872 million in operating cash flow and $734 million in free cash flow during the second quarter of fiscal 2026.
In the fiscal second quarter, the company returned $1.31 billion to shareholders, comprising $536 million in dividends and $773 million in share repurchases.
ADI Initiates Q3 FY26 Guidance
For the third quarter of fiscal 2026, management expects revenues to be $3.9 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.61 billion, indicating year-over-year growth of 20.7%.
The company projects a reported operating margin of approximately 39% (+/-150 bps) and an adjusted operating margin of about 49% (+/-100 bps).
Reported earnings are anticipated to be $2.60 (+/-$0.15) per share, while adjusted earnings are expected to be $3.30 (+/-$0.15) per share. The consensus mark for the same is pinned at $2.96 per share.
Zacks Rank & Other Stocks to Consider
Currently, ADI carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 18.8% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.47 per share, up by 2 cents over the past seven days, indicating a year-over-year surge of 68.2%.
Shares of Celestica have gained 14.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 11.7% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.