Analog Devices beats estimates, guides above expectations

Investing.com -- Analog Devices Inc. (NASDAQ: ADI) reported second-quarter fiscal 2026 results that exceeded analyst expectations, with both earnings and revenue surpassing the high end of the company’s prior outlook.

The semiconductor manufacturer posted adjusted earnings per share of $3.09, beating the analyst consensus of $2.90 by $0.19. Revenue reached $3.62 billion, topping estimates of $3.51 billion and representing 37% growth YoY from $2.64 billion in the prior-year period. The company reported YoY growth across all end markets, led by Industrial, which grew 56%, and Communications, which surged 79%.

For the third quarter of fiscal 2026, Analog Devices issued guidance above Wall Street expectations. The company forecasts adjusted EPS of $3.15-$3.45, with a midpoint of $3.30 that exceeds the consensus estimate of $3.00. Revenue guidance of $3.8-4.0 billion also surpasses the analyst consensus of $3.61 billion, with a midpoint of $3.9 billion. Shares fell 0.5% following the announcement.

"ADI’s second quarter revenue and earnings were above the high end of our outlook, reflecting the combination of record demand and sharp operational discipline," said Vincent Roche, CEO and Chair.

CFO Richard Puccio noted, "We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications. These positive demand signals are reflected in our outlook for continued strong growth in the third quarter."

Analog Devices generated $872 million in operating cash flow during the quarter, or 24% of revenue. On a trailing twelve-month basis, operating cash flow totaled $5.1 billion, representing 40% of revenue, while free cash flow reached $4.6 billion, or 36% of revenue.

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