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Analog Devices
(NASDAQ:ADI)
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Rating:73Outperform
Price Target:
$453.00
▲(21.23% Upside)
Action:Reiterated
Date:09/17/26
ADI scores well primarily on strong financial performance (high margins and robust free cash flow) and a notably upbeat earnings outlook with record results and strong Q4 guidance. The overall score is held back by expensive valuation (P/E ~42.7) and softer technical momentum (negative MACD and price below key short/intermediate moving averages). Corporate events are supportive but mixed due to added leverage/financing activity and ongoing cybersecurity-related risk.
Positive Factors
High margins and cash generation
ADI combines high profitability with substantial cash generation, supporting investment, acquisitions, dividends and buybacks. Free cash flow close to net income indicates that reported earnings are largely cash-backed, strengthening financial resilience over the next several quarters.
Negative Factors
Cyclical revenue volatility
The sharp FY2024 contraction shows that ADI remains exposed to semiconductor cycles despite its strong rebound. Demand normalization or delayed customer production could therefore pressure revenue, factory absorption and margins over the next two to six months.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and cash generation
ADI combines high profitability with substantial cash generation, supporting investment, acquisitions, dividends and buybacks. Free cash flow close to net income indicates that reported earnings are largely cash-backed, strengthening financial resilience over the next several quarters.
Read all positive factors
Analog Devices Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Shows how revenue is distributed across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Data provided by:
The Fly
The FlyAnalog Devices (ADI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$196.83B
Dividend Yield1.06%
Average Volume (3M)3.02M
Price to Earnings (P/E)48.0
Beta (1Y)1.58
Revenue Growth33.65%
EPS Growth114.59%
CountryUS
Employees24,500
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)8.47
Shares Outstanding484,565,460
10 Day Avg. Volume2,634,294
30 Day Avg. Volume3,017,367
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)3.42
Price to Sales (P/S)10.50
P/FCF Ratio27.05
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue13.43
Enterprise Value/Gross Profit20.41
Enterprise Value/Ebitda26.53
Forecast
1Y Price Target
$482.16Price Target Upside29.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)12.87
Revenue Forecast (FY)$15.10B
Analog Devices Business Overview & Revenue Model
Company Description
Analog Devices, Inc. (ADI) is a technology leader specializing in the conception, production, validation, and global marketing of integrated circuits (ICs), software solutions, and advanced subsystems. Their offerings leverage sophisticated analog...
How the Company Makes Money
ADI primarily makes money by selling semiconductor products (integrated circuits and modules) to original equipment manufacturers (OEMs) and electronics manufacturers through direct sales and distribution partners. Its revenue model is largely bas...
Analog Devices Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive performance and outlook: record revenue, margin and EPS, exceptional data center and industrial momentum, robust free cash flow and strategic capability expansion (notably in power and optics). Management acknowledged manageable near‑term tradeoffs (higher balance sheet inventory, acquisition cash outflow) and industry‑wide risks (inflation, capacity planning, macro/geopolitical uncertainty), but emphasized design wins, a broadened SAM and sustained multi‑year growth drivers. Overall the positives materially outweigh the listed challenges.Positive Updates
Record Quarterly Revenue
Revenue of $4.02 billion in Q3 — ADI's first $4 billion quarter; +11% sequentially and +40% year‑over‑year.
Negative Updates
Cash Balance Decline from Acquisition
Cash and short‑term investments decreased to $2.3 billion following the $1.5 billion all‑cash Empower acquisition, reducing near‑term liquidity relative to prior quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue of $4.02 billion in Q3 — ADI's first $4 billion quarter; +11% sequentially and +40% year‑over‑year.
Read all positive updates
Company Guidance
For fiscal Q4 the company guided revenue of $4.3 billion ± $0.1 billion (range $4.2–4.4B), gross margin to increase roughly 150 basis points to about 74%, operating margin at a midpoint of 52% ±100 bps (51–53%), non‑operating expenses of ~ $80 million, a tax rate of 12–14% and adjusted EPS of $3.86 ± $0.15 (range $3.71–$4.01). For context, Q3 revenue was $4.02B (up 11% sequentially, 40% YoY) with 72.5% gross margin, 50% operating margin, non‑op expense $69M, tax rate 13.1% and EPS $3.45; trailing‑12‑month operating cash flow and CapEx were $5.5B and $0.6B, free cash flow was a record $4.9B (36% of revenue), cash & short‑term investments $2.3B after a $1.5B acquisition, net leverage 0.9, inventory days 156 and channel weeks below the 6–7 week target, and fiscal ’26 CapEx is expected to be within the 4–6% of revenue long‑term model.Analog Devices Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.88B | 11.02B | 9.43B | 12.31B | 12.01B | 7.32B |
| Gross Profit | 9.13B | 6.77B | 5.38B | 7.88B | 7.80B | 4.86B |
| EBITDA | 7.03B | 5.03B | 4.20B | 6.17B | 5.60B | 2.59B |
| Net Income | 4.14B | 2.27B | 1.64B | 3.31B | 2.75B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 48.42B | 47.99B | 48.23B | 48.79B | 50.30B | 52.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.32B | 3.65B | 2.36B | 958.06M | 1.47B | 1.98B |
| Total Debt | 9.12B | 8.66B | 7.65B | 7.01B | 6.60B | 6.82B |
| Total Liabilities | 14.87B | 14.18B | 13.05B | 13.23B | 13.84B | 14.33B |
| Stockholders Equity | 33.55B | 33.82B | 35.18B | 35.57B | 36.47B | 37.99B |
Cash Flow | ||||||
| Free Cash Flow | 4.94B | 4.28B | 3.12B | 3.56B | 3.78B | 2.39B |
| Operating Cash Flow | 5.55B | 4.81B | 3.85B | 4.82B | 4.48B | 2.74B |
| Investing Cash Flow | -1.10B | -1.32B | -1.10B | -1.27B | -657.37M | 2.14B |
| Financing Cash Flow | -4.60B | -2.98B | -1.71B | -4.06B | -4.29B | -3.96B |
Analog Devices Technical Analysis
Positive
373.66
Price Trends
379.62
Positive
388.37
Positive
361.30
Positive
Market Momentum
10.67
Negative
60.54
Neutral
55.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Positive. The current price of 373.66 is below the 20-day moving average (MA) of 391.58, below the 50-day MA of 379.62, and above the 200-day MA of 361.30, indicating a bullish trend. The MACD of 10.67 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 55.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADI.
Analog Devices Risk Analysis
Analog Devices disclosed 30 risk factors in its most recent earnings report. Analog Devices reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Analog Devices Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $196.83B | 47.96 | 12.26% | 1.06% | 33.65% | 114.59% | |
72 Outperform | $57.37B | 19.31 | 28.05% | 1.78% | 8.77% | 39.24% | |
71 Outperform | $259.12B | 42.93 | 35.77% | 2.00% | 16.66% | 20.14% | |
68 Neutral | $30.18B | 49.07 | 8.38% | ― | -3.14% | 44.55% | |
63 Neutral | $41.02B | 104.68 | 6.90% | 2.41% | 20.93% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $46.58B | 99.16 | 2.66% | 0.69% | 10.06% | -27.68% |
* Technology Sector Average
ADI
Analog Devices
406.19
174.42
75.25%
MCHP
Microchip
75.55
12.80
20.41%
NXPI
NXP Semiconductors
227.52
14.58
6.85%
ON
ON Semiconductor
77.53
27.42
54.72%
STM
STMicroelectronics
52.06
23.48
82.17%
TXN
Texas Instruments
283.74
113.05
66.23%
Analog Devices Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Analog Devices Announces $3 Billion Senior Notes Offering
Positive
Sep 17, 2026
On September 17, 2026, Analog Devices issued a total of $3 billion in unsecured senior notes across four maturities, ranging from 2029 to 2036, in an underwritten public offering led by J.P. Morgan Securities. The tranches carry fixed interest rat...
Business Operations and StrategyM&A Transactions
Analog Devices to Acquire Alif Semiconductor for Edge AI
Positive
Sep 9, 2026
Analog Devices said on September 9, 2026 that it has agreed to acquire Alif Semiconductor in an all-cash deal valued at $1.35 billion, with up to $200 million in additional contingent consideration. Alif supplies low-power, AI-native microcontroll...
Business Operations and StrategyRegulatory Filings and Compliance
Analog Devices Evaluates New Cybersecurity Issue and Impact
Negative
Jul 29, 2026
On June 23, 2026, Analog Devices detected unauthorized access to certain company systems and immediately activated incident response protocols, engaging external cybersecurity experts and coordinating with law enforcement while keeping operations ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.