Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Analog Devices reported results for the third quarter of fiscal 2026, a period defined by broad-based revenue growth and a sharp expansion in profitability. Management attributed the performance to strength across industrial sub-markets, particularly test equipment and aerospace and defense, and to AI-related infrastructure investments in the data center sub-market. Gross margin improved significantly on higher manufacturing utilization and favorable product mix, while a gain on the sale of a subsidiary in Penang also contributed to operating income. The main tension is that current liabilities nearly doubled year over year due to the reclassification of debt due within one year, although management states liquidity is sufficient for at least the next twelve months.
Revenue
$4.02B
+39.63% YoY
EPS (Diluted)
$2.74
+163.46% YoY
Gross Margin
67.3%
+5.2 pts YoY
Operating Income
$1.61B
+97.18% YoY
Source: SEC XBRL
Analog Devices (ADI) reported Q3 FY2026 revenue of $4.02B, up 39.6% year over year. Operating margin was 40.1%, up 11.7 points from 28.4% a year earlier. ADI's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 3.45 | 3.37 | Beat +2.4% |
| Jun 2026 | 3.09 | 2.93 | Beat +5.3% |
| Mar 2026 | 2.46 | 2.33 | Beat +5.4% |
| Dec 2025 | 2.26 | 2.24 | Beat +0.7% |
Adjusted (non-GAAP) EPS of $3.45 versus the $3.37 analyst consensus — a +2.4% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.74.
Compiled by AI from 10-Q Item 2 of this filing
Revenue increased 40% in Q3 FY2026, reflecting broad-based demand. Within Industrial, all sub-markets grew, led by test equipment and aerospace and defense. Communications growth was strongest in data center, driven by AI-related infrastructure investments.
Source: 10-Q Item 2 MD&A
Gross margin percentage increased 520 basis points to 67.3% in Q3 FY2026, primarily due to higher utilization of manufacturing fixed costs from increased customer demand and favorable mix of products sold into end markets.
Source: 10-Q Item 2 MD&A
Special charges, net decreased by $28.6 million in Q3 FY2026, including a $24.4 million gain on the sale of a subsidiary in Penang, Malaysia, partially offset by a $15.6 million impairment charge in Q1 FY2026 related to leased facilities in San Jose.
Source: 10-Q Item 2 MD&A
The effective tax rate fell to 13.3% in Q3 FY2026 from 32.1% a year earlier, below the U.S. statutory rate due to lower statutory tax rates in foreign jurisdictions; the prior year included a $153.8 million deferred tax expense related to the One Big Beautiful Bill Act.
Source: 10-Q Item 2 MD&A
Management believes existing liquidity and future operating cash flows are sufficient for at least the next twelve months. Current liabilities increased to $5.7 billion from $3.2 billion at fiscal 2025 year-end, primarily reflecting the reclassification of $1.3 billion of debt due within one year.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
ADI disclosed a June 2026 cybersecurity incident that resulted in exfiltration of files from certain affected systems. While operations were not interrupted and the company currently believes the incident is unlikely to materially impact its business, the investigation into the nature and scope of exfiltrated information remains ongoing. Such incidents could lead to litigation, regulatory action, reputational damage and significant remediation costs.
Source: 10-Q Item 1A Risk Factors
Distributors accounted for 58% of Q3 FY2026 revenue, up from 55% in the prior-year period. MD&A flags risks related to the performance of independent distributors and the possibility that products may be diverted from authorized distribution channels, which could disrupt revenue recognition and demand signals.
Source: 10-Q Item 2 MD&A
MD&A states that recently announced and future tariffs, other trade restrictions, changes in export classifications, import and export regulations or duties could cause actual results to differ materially from expectations. These factors are particularly relevant given ADI's global semiconductor supply chain and international customer base.
Source: 10-Q Item 2 MD&A
ADI acquired Empower Semiconductor, Inc. during Q3 FY2026. MD&A cites risks related to acquisitions or other strategic transactions, including unanticipated difficulties or expenditures relating to integrating acquired businesses, which could disrupt operations and add costs.
Source: 10-Q Item 2 MD&A
Total debt was $9.2 billion as of August 1, 2026, with $1.3 billion reclassified to current liabilities due within one year. MD&A notes risks related to the company's indebtedness and the need for sufficient liquidity; ADI has commercial paper and revolving credit agreements with covenants, and its current ratio is 1.25.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.02 $B | 2.88 $B | +39.63% |
Cost of Revenue $B | 1.31 $B | 1.09 $B | +20.52% |
Gross Profit $B | 2.71 $B | 1.79 $B | +51.28% |
Operating Income $B | 1.61 $B | 0.82 $B | +97.18% |
Net Income $B | 1.34 $B | 0.52 $B | +158.45% |
EPS (Basic) $ | 2.76 $ | 1.05 $ | +162.86% |
EPS (Diluted) $ | 2.74 $ | 1.04 $ | +163.46% |
R&D Expense $M | 533.48 $M | 454.25 $M | +17.44% |
SG&A Expense $M | 397.33 $M | 325.71 $M | +21.99% |
Answers draw on this SEC filing and the data on this page
ADI delivered exceptional Q2 FY2026 results with revenue surging 37.2% YoY to $3.62B and net income more than doubling to $1.18B, driven by strong demand recovery and significant margin expansion across all profitability metrics.
ADI delivered a standout Q1 FY2026 with revenue surging 30.4% YoY to $3.16B, operating income more than doubling to $997M, and net income jumping 112.3% to $831M, reflecting a powerful cyclical recovery and strong operating leverage.
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