It has been about a month since the last earnings report for Analog Devices (ADI Quick QuoteADI - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Analog Devices due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Analog Devices reported third-quarter fiscal 2026 non-GAAP earnings of $3.45 per share, which beat the Zacks Consensus Estimate by 3.6%. The company reported earnings of $2.05 per share in the year-ago period.

Analog Devices’ third-quarter fiscal 2026 revenues of $4.02 billion surpassed the Zacks Consensus Estimate by 2.5%. The top line increased 40% from the year-ago quarter’s revenues of $2.88 billion.

Analog Devices’ Q3 Details

Industrial: Revenues from this segment were $1.97 billion, representing 49% of total revenues and reflecting 53% year-over-year growth.
Automotive: Revenues reached $998.2 million (or 25% of total revenue), up 16% year over year.

Communications: Revenues came in at $654.5 million, accounting for 16% of total revenues and rising 84% year over year.

Consumer: The segment generated $397.2 million (or 10% of revenues), marking a 6% increase compared with the same quarter last year.

The adjusted gross margin expanded 330 basis points to 72.5%, while the adjusted operating margin was 50%, up 780 basis points year over year.

ADI’s Balance Sheet and Cash Flows

As of Aug. 1, 2026, cash and cash equivalents were approximately $2.17 billion, down from $2.44 billion as of May 2, 2026. The company also held $159.1 million in short-term investments during the third quarter.

Long-term debt was $6.77 billion compared with $7.24 billion at the end of the previous quarter.

Analog Devices generated $1.6 billion in operating cash flow and $1.46 billion in free cash flow during the third quarter of fiscal 2026.

In the fiscal third quarter, the company returned $1.7 billion to shareholders, comprising $535 million in dividends and $1.16 billion in share repurchases.

ADI Initiates Q4 FY26 Guidance

For the fourth quarter of fiscal 2026, management expects revenues to be $4.3 billion (+/- $100 million).

The company projects a reported operating margin of approximately 42.6% (+/-150 bps) and an adjusted operating margin of about 52% (+/-100 bps).

Reported earnings are anticipated to be $3.14 (+/-$0.15) per share, while adjusted earnings are expected to be $3.86 (+/-$0.15) per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 11.74% due to these changes.

VGM Scores

Currently, Analog Devices has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Analog Devices has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.