Analog Devices (1ADI) AI Stock Analysis

2 Followers

Analog Devices

(Milan:1ADI)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong cash generation and profitabilityADI converts its earnings into substantial cash, with $4.9 billion of trailing free cash flow and strong operating cash generation. High margins and cash-backed profits provide durable funding for research, capacity, acquisitions, dividends, and buybacks across the cycle.

Negative Factors

Cyclical earnings and revenue volatilityADI’s strong rebound follows a material FY2024 revenue contraction, showing that demand can fluctuate meaningfully across semiconductor cycles. This volatility can make margins, earnings, and investment returns less consistent even when the underlying portfolio and long-term demand opportunities remain attractive.

Analog Devices (1ADI) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 198.23B
Dividend Yield: 1.00%
Average Volume (3M): 24
Price to Earnings (P/E): 48.3
Beta (1Y): 0.80
Revenue Growth: 25.82%
EPS Growth: 102.20%
Country: Italy
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 19, 2026(Q3-2026)|% Change Since:14.77%|Next Earnings Date:Nov 24, 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

IT:1ADI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	80Outperform	$65.93B	21.07	29.17%	1.50%	14.55%	57.03%
TXN	68Neutral	$274.61B	40.08	40.51%	1.87%	20.27%	40.76%
MCHP	67Neutral	$32.83B	46.55	12.43%	2.93%	33.02%	―
ON	65Neutral	$27.10B	41.83	9.26%	―	2.93%	126.11%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57Neutral	$39.73B	79.88	2.97%	0.78%	15.81%	-2.21%

* Technology Sector Average

Performance Comparison

IT:1ADI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1ADI	Analog Devices, Inc.	368.45	166.33	82.30%
MCHP	Microchip Technology	62.13	8.72	16.32%
NXPI	NXP Semiconductors	269.51	71.78	36.30%
ON	ON Semiconductor Corporation	73.62	25.49	52.96%
STM	Stmicroelectronics N.V.	46.26	22.66	96.05%
TXN	Texas Instruments	309.81	151.04	95.13%

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