Companies /Technology

Analog Devices Inc

NASDAQ: ADI Semiconductors
$362.14
â–² $0.36 (+0.10%) today
Markets closed · 6:40pm ET

Q1 2026 Earnings

Reported Feb 18, 2026, 7:02am ET · SEC source
$2.46
Beat +6.49%
EPS · est. $2.31
$3.2B
Beat +1.43%
Revenue · est. $3.1B
−5.2%
Trailing market
ADI vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Feb 18Feb 19report 7:02am ETearnings−0.5%−0.9%
0+3%+6%Feb 18Feb 19earnings−0.5%−0.9%
ADI −0.9%S&P 500 −0.5%
0+3%+6%Feb 18Feb 19report 7:02am ETearnings−0.5%−0.9%
0+3%+6%Feb 18Feb 19earnings−0.5%−0.9%
ADI −0.9%NASDAQ −0.5%
−6%−3%0Feb 17Feb 25report 7:02am ETearnings+1.4%+0.7%
−6%−3%0Feb 17Feb 25earnings+1.4%+0.7%
ADI +0.7%S&P 500 +1.4%
−6%−3%0+3%Feb 17Feb 25report 7:02am ETearnings+2.4%+0.7%
−6%−3%0+3%Feb 17Feb 25earnings+2.4%+0.7%
ADI +0.7%NASDAQ +2.4%
+2.63%
Day of report
−0.31%
Next session
+4.17%
One week
−10.66%
30 days

S&P 500 over the same 30 days: −5.50%.

Did ADI Beat Earnings? Q1 2026 Results

Analog Devices kicked off fiscal 2026 with a quarter that exceeded expectations on both the top and bottom lines, as broad-based demand strength and expanding margins drove the chipmaker well past Wall Street forecasts. Revenue of $3.16 billion climbed 30.4% year-over-year and edged above the $3.12 billion consensus, while adjusted diluted EPS of $2.46 beat the $2.31 estimate by 6.55%, growing 51% from the prior-year period's $1.63. The single most decisive driver was a surge in Communications revenue, up 63% year-over-year to $476.80 million, fueled by record data center orders that CFO Richard Puccio highlighted as a standout development, reflecting accelerating AI infrastructure buildout. Industrial, the company's largest segment at $1.49 billion, contributed its own 38% year-over-year lift, reinforcing the breadth of the recovery. Adjusted operating margin expanded 500 basis points to 45.5%, and free cash flow reached $1.26 billion for the quarter. Looking ahead, management guided fiscal Q2 revenue to $3.50 billion, with adjusted EPS of $2.88, projecting continued bookings momentum despite a complex geopolitical backdrop.

Key Takeaways
  • Year-over-year revenue growth across all four end markets
  • Industrial and Communications led revenue growth, with Communications up 63% YoY
  • Record orders for Data Center segment
  • Continued bookings growth driven by broad strength in Industrial
  • Adjusted gross margin expansion of 240 bps YoY to 71.2%
  • Adjusted operating margin expansion of 500 bps YoY to 45.5%

“ADI's robust first quarter built upon the strong position and momentum with which we entered the year. Our success continues to be the result of relentless innovation to solve our customers toughest problems and deliver enduring business impact. Our investments in R&D and the customer experience from design to delivery continue to position us to create outstanding value for shareholders and customers alike.”

Analog Devices CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q2 2026 (three months ending May 2, 2026), ADI forecasts revenue of $3.5 billion (+/- $100 million), which management described as a new high watermark. Reported operating margin is expected at approximately 36.4% (+/-150 bps) and adjusted operating margin at approximately 47.5% (+/-100 bps). Reported EPS is guided at $2.19 (+/- $0.15) and adjusted EPS at $2.88 (+/- $0.15). Tax rate is expected at 11%-13%. Bookings growth continued in Q1, driven by broad Industrial strength and record Data Center orders, though the macro and geopolitical backdrop remains challenging.

ADI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$900.0M$1.8B$2.7B$2.4B$3.2BRevenue$1.4B$2.0BGross Profit$491.3M$997.0MOperating Income$391.3M$830.8MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

ADI Revenue by Segment

Industrial$1.5B+38.0%
Automotive$794.4M+8.0%
Communications$476.8M+63.0%
Consumer$399.8M+27.0%

Figures from SEC filings and company reports. Not investment advice.