Analog Devices (0HFN) AI Stock Analysis

Analog Devices

(LSE:0HFN)

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Positive Factors

High ProfitabilityADI’s high gross, operating, and net margins indicate substantial value from differentiated analog and mixed-signal products. This profitability supports reinvestment in technology, customer design wins, and capacity while providing resilience across normal semiconductor cycles.

Negative Factors

Cyclical Revenue HistoryThe sharp FY2024 contraction demonstrates that ADI remains exposed to semiconductor inventory and demand cycles despite its strong current rebound. Such volatility can pressure utilization, margins, and cash generation when industrial or communications customers reduce orders.

Analog Devices (0HFN) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $202.12B
Dividend Yield: 1.04%
Average Volume (3M): 1,452
Price to Earnings (P/E): 49.2
Beta (1Y): 0.73
Revenue Growth: 33.65%
EPS Growth: 114.59%
Country: UK
Employees: 24,500
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

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, m...

Analog Devices Earnings Call Summary

Earnings Call Date:Aug 18, 2026(Q3-2026)|% Change Since:11.31%|Next Earnings Date:Nov 23, 2026

Earnings Call SentimentPositive

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.

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 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0HFN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	82Outperform	$65.44B	20.30	29.17%	1.56%	8.77%	39.24%
TXN	77Outperform	$274.90B	38.92	40.51%	1.92%	20.27%	40.76%
ON	68Neutral	$27.90B	45.36	8.38%	―	-3.14%	44.55%
MCHP	63Neutral	$42.00B	107.16	6.90%	2.35%	20.93%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60Neutral	$41.86B	79.81	2.97%	0.77%	15.81%	-2.21%

* Technology Sector Average

Performance Comparison

GB:0HFN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0HFN	Analog Devices, Inc.	412.00	180.74	78.16%
MCHP	Microchip Technology	77.34	16.52	27.17%
NXPI	NXP Semiconductors	259.61	52.87	25.57%
ON	ON Semiconductor Corporation	71.67	21.21	42.03%
STM	Stmicroelectronics N.V.	46.74	22.53	93.05%
TXN	Texas Instruments	300.84	142.82	90.38%

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.

Analog Devices AI Stock Analysis