Analog Devices reports record Q2 results, driven by strong demand across industrial, automotive, communications, and B2B markets.
Stock Earnings Results
May 20, 2026
Table of Contents
May 20, 2026
Analog Devices, Inc. (NASDAQ: ADI) reported record fiscal second-quarter 2026 results above expectations, supported by strong demand across industrial, automotive, communications, and broader B2B markets.
Analog Devices is a global semiconductor company that designs analog, mixed-signal, power management, radio frequency, sensor, and digital signal processing chips used across industrial, automotive, communications, consumer, and healthcare markets.
The company reported adjusted EPS of $3.09, above estimates of $2.89, representing a 6.9% earnings surprise. Revenue came in at $3.62 billion, above estimates of $3.51 billion, with revenue growth of 37.2%.
Analog Devices reported fiscal second-quarter revenue of $3.62 billion, up 37% year-over-year.
The company said growth was broad-based across all end markets, led by Industrial and Communications. Management also said revenue and earnings came in above the high end of its outlook.
Gross margin improved to 67.3%, up from 61.0% in the prior-year quarter.
Adjusted gross margin reached 73.0%, while adjusted operating margin expanded to 49.0%, up from 41.2% a year earlier. That shows strong operating leverage as demand improved.
Diluted EPS rose to $2.40, up 111% from $1.14 in the prior-year period.
Adjusted diluted EPS increased 67% to $3.09, showing that higher revenue and margin expansion flowed through to earnings.
Analog Devices generated $872 million in operating cash flow during the quarter.
On a trailing 12-month basis, operating cash flow reached $5.1 billion, while free cash flow reached $4.6 billion, equal to 36% of revenue.
The company returned $1.3 billion to shareholders during the quarter through dividends and share repurchases.
That included $536 million in dividends and $773 million in stock repurchases. Over the trailing 12 months, ADI returned $5.0 billion to shareholders.
Management said record bookings across Industrial, Automotive, and Communications markets support expectations for continued strong growth in the third quarter.
That forward demand signal likely helped support the positive stock reaction.
Investors are likely to watch whether Analog Devices can sustain growth and margins as semiconductor demand recovers.
The key areas are:
Analog Devices delivered a strong quarter because revenue, EPS, margins, bookings, and shareholder returns all moved in the right direction.
The results show improving demand across key semiconductor end markets, especially industrial and communications. The next test is whether record bookings convert into sustained revenue growth through the second half of fiscal 2026.
Platforms like LevelFields track earnings misses, layoffs, dividend increases, leadership changes, and stock reactions together, helping investors identify when small-cap healthcare stocks are moving on balance sheet progress rather than current revenue alone.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better investor.
AI scans for events proven to impact stock prices, so you don't have to.
LEARN MORE