#United States #Analog Devices #Wilmington #Semiconductor #Q2 2026

Analog Devices Reports Record Financial Results for Q2 2026

Analog Devices, Inc. (ADI), a global leader in the semiconductor industry, unveiled its financial results for the second fiscal quarter of 2026, concluding on May 2, 2026. The company achieved an impressive revenue of $3.62 billion, marking a remarkable year-over-year growth of 37%. This remarkable performance was bolstered by strong demand across its industrial and communication sectors.

Vincent Roche, CEO and Chair of ADI, expressed pride in the company’s performance, stating, "ADI's second quarter revenue and earnings exceeded our forecasts, demonstrating record demand and strict operational discipline. Our innovation-driven strategy addresses customers’ most complex challenges, aiming to provide sustainable business impact. We are committed to enhancing our technological leadership and long-term customer value."

Richard Puccio, the Chief Financial Officer, echoed this sentiment, noting, "We witnessed unprecedented demand in Q2, highlighted by record bookings in our B2B sectors such as Industrial, Automotive, and Communications. We anticipate continued strong growth in the upcoming third quarter."

Financial Highlights

The consolidated financial report for the quarter indicates several significant improvements:

• - Revenue: ADI reported revenue of $3,623 million, up from $2,640 million in the same quarter last year.
• - Gross Margin: The gross margin hit $2,440 million, a robust increase from $1,612 million year-over-year, leading to a gross margin percentage of 67.3%, up from 61.0%.
• - Operating Income: Operating income saw a drastic increase to $1,380 million from $678 million, resulting in an operating margin that reached 38.1%.
• - Earnings per Share (EPS): The diluted earnings per share surged to $2.40, a 111% increase from $1.14 in Q2 2025.

Cash Flow and Shareholder Return

Analog Devices demonstrated strong cash generation with operating cash flow of $5.1 billion and a free cash flow of $4.6 billion, representing 40% and 36% of revenue, respectively. In a significant move to reward shareholders, ADI returned $1.3 billion through dividends and share repurchases during Q2.

The Board of Directors has announced a quarterly cash dividend of $1.10 per share, to be distributed on June 16, 2026, for shareholders recorded by June 2, 2026.

Looking Ahead: Third Quarter Forecast

For the third quarter of fiscal 2026, ADI projects a steady revenue target of $3.9 billion, allowing for fluctuations of plus or minus $100 million. The company anticipates an operating margin around 39%, with adjusted figures projected to reach 49%. Expected EPS for the third quarter is set at $2.60 with adjusted figures at $3.30.

ADI is confident that their strategic investments in technology and commitment to operational excellence will fortify their market standing and deliver ongoing value to shareholders and customers alike.

Overall, the record results for Q2 reflect ADI's strong positioning within the semiconductor market and its commitment to pushing the boundaries of technological advancement in crucial sectors like Industrial, Automotive, and Communications. As they continue to innovate, the outlook for ADI remains highly promising.