How has Analog Devices lifted fiscal third-quarter revenue by 40%?

Sonal Goyal

28 October 2026 05:00 PM AEDT

How has Analog Devices lifted fiscal third-quarter revenue by 40%?

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Key Highlights

Fiscal third-quarter Revenue was $4,021.9 million, up 40% from $2,880.3 million a year earlier.
Gross Margin was 67.3% and Diluted Earnings per Share were $2.74, against $1.04 a year earlier.
Industrial was the largest end market at $1,971.9 million, up 53%, while communications rose 84% to $654.5 million.

The latest filing

Analog Devices (NASDAQ:ADI) last reported results for its fiscal third quarter, which ended 1 August 2026, in a Quarterly Report filed with the SEC on 19 August. A date for fourth-quarter results, which would close the fiscal year, has not been confirmed. Information here comes from the quarterly report and SEC data, not a press release.

A sharp step up in revenue

Revenue was $4,021.9 million, up 40% from $2,880.3 million a year earlier and up from $3,623.5 million in the second quarter. Revenue has risen sequentially in each of the last three quarters, from $2,880.3 million to $3,160.3 million, $3,623.5 million and now $4,021.9 million.

Industrial was the largest end market at $1,971.9 million, or 49% of revenue, up 53%. Automotive was $998.2 million, up 16%. Communications rose 84% to $654.5 million, and consumer rose 6% to $397.2 million. Growth was therefore uneven, with communications and industrial far ahead of consumer. A year earlier, industrial was $1,293.0 million, automotive $857.1 million, communications $354.8 million and consumer $375.4 million. By channel, distributors accounted for 58% of third-quarter revenue, direct customers 39% and other routes 3%.

Margins and earnings

Gross margin was 67.3%, against 62.1% a year earlier. Operating Margin was 40.1%, against 28.4%, with Operating Income of $1,613.0 million. Net Income was $1,340.1 million, compared with $518.5 million a year earlier, and diluted earnings per share were $2.74, against $1.04. Operating income rose about 97% on 40% revenue growth, and net income equalled 33.3% of revenue.

Gross profit was $2,707.5 million, compared with $1,789.7 million a year earlier. These are figures on a GAAP basis from the filing; the company's separate earnings release may show adjusted measures.

Cash, Debt and Capital returns

For the nine months to 1 August, Operating Cash Flow was $3,844.5 million and Capital Expenditure was $392.7 million, which gives free cash flow of $3,451.8 million. Dividends paid were $1,556.0 million, or $3.19 per share, and cash spent on share repurchases was $2,446.4 million. Together, dividends and Buybacks came to about $4,002.4 million, which exceeds the nine-month free cash flow by roughly $550 million. Acquisitions, net of cash acquired, were $1,536.0 million. The company also sold a Subsidiary in Penang, Malaysia, for proceeds of $96.6 million, with a gain of about $24.2 million.

At the quarter end, cash and equivalents were $2,165.9 million, with short-term investments of $159.1 million. Cash was $2,499.4 million at the start of the fiscal year, on 1 November 2025. Total debt was $9,121.6 million, including $1,005.1 million of commercial paper. The filing shows $7.4 billion remaining under the repurchase authorisation. In the third quarter alone, the company repurchased about 2.9 million shares for roughly $1,157 million. The third-quarter Dividend was $1.10 per share, or $535.3 million in total.

What to watch next

The first point is whether the revenue pace holds. The second is the mix, since industrial and communications supplied most of the year-on-year growth and consumer lagged. The third is margin, where gross margin can be compared with the 67.3% reported. The fourth is the balance sheet, given debt of roughly $9.1 billion alongside sizeable buybacks. This article offers no forecast.

FAQs

Q: What was Analog Devices' revenue in fiscal third quarter 2026?

A: Revenue was $4,021.9 million, up 40% from $2,880.3 million a year earlier and up from $3,623.5 million in the second quarter.

Q: Which end markets drove the growth?

A: Industrial was the largest at $1,971.9 million, up 53%, and communications rose 84% to $654.5 million. Automotive grew 16% and consumer 6%.

Q: How much did the company return to shareholders in the nine months?

A: Dividends paid were $1,556.0 million and share repurchases were $2,446.4 million, together about $4,002.4 million. About $7.4 billion remained under the repurchase authorisation.

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