Key Highlights

● Fiscal third-quarter Revenue was $4.02 billion, up 40% from $2.88 billion.

● Industrial revenue rose 53% to $1.97 billion; Communications rose 84% to $655 million.

● Adjusted Earnings Per Share were $3.45, up 68%, with adjusted Operating Margin of 50.0%.

● Free Cash Flow was $1.46 billion, and Shareholder returns totalled $1.69 billion.

The latest verified development

Analog Devices, Inc. (NASDAQ:ADI), a supplier of analogue, mixed-signal and power semiconductors, last reported on 19 August 2026 for its fiscal third quarter, which ended on 1 August. Chief executive Vincent Roche said ADI delivered a strong third quarter that exceeded the midpoint of its revenue, margin and earnings outlook.

The company is a constituent of both the S&P 500 and the Nasdaq-100.

Third-quarter results

Revenue was $4.02 billion, up 40% from $2.88 billion. Industrial revenue was $1.97 billion, 49% of the total, up 53%. Automotive was $998 million, 25% of the total, up 16%. Communications was $655 million, up 84%, and Consumer was $397 million, up 6%.

Gross margin was 67.3% on a GAAP basis, up 520 basis points, and 72.5% adjusted, up 330 basis points. Operating margin was 40.1% on a GAAP basis and 50.0% adjusted, up 1,170 and 780 basis points respectively. GAAP Diluted Earnings per Share were $2.74, up 163%, and adjusted earnings per share were $3.45, up 68%.

In absolute terms, revenue rose by about $1.14 billion in a year. Applying the reported margins, GAAP Operating Income was roughly $1.6 billion and adjusted operating income roughly $2.0 billion. Earnings grew much faster than sales, which is consistent with operating leverage, although a single quarter is a narrow base for extrapolation.

Cash generation and shareholder returns

Free cash flow was $1.46 billion, or 36% of revenue. Over the Trailing Twelve Months it was $4.94 billion, also 36% of revenue, on $5.55 billion of operating cash flow. The company paid $535 million in dividends and repurchased $1.16 billion of stock, returning $1.69 billion in total.

The board declared a quarterly Dividend of $1.10 per share, payable on 15 September 2026 to holders of record on 1 September. That annualises to $4.40.

What the mix shows

The strongest growth came from Communications and Industrial, which together contributed about $2.6 billion of the quarter's revenue. Automotive grew more slowly but remains a quarter of sales.

The gap between GAAP and adjusted operating margin, about ten percentage points, reflects adjustments, and adjusted figures exclude costs that some regard as recurring.

Fourth-quarter guidance and margin targets

For the fiscal fourth quarter, ADI guided to revenue of $4.3 billion, plus or minus $100 million, with an adjusted operating margin of about 52.0%, plus or minus 100 basis points, and adjusted earnings per share of $3.86, plus or minus $0.15. Reported earnings per share are guided at $3.14, plus or minus $0.15. The revenue midpoint is about 7% above the third quarter. Those figures are the company's outlook only.

Fourth-quarter adjusted earnings per share are guided at $3.86 against $3.45 reported in the third quarter, and the guided adjusted operating margin of about 52.0% compares with 50.0% last quarter.