Analog delivers fiscal Q1 2026 revenue of $3.16B

Analog Devices (NYSE:ADI) posted fiscal first-quarter 2026 revenue of $3.16 billion, an increase of 30% from the prior-year period, reflecting broad-based demand strength in key secular growth areas, including electrification, automation, 5G infrastructure, and data center power efficiency.

Gross margin expanded significantly to 64.7%, up 570 basis points year over year, driven by favorable product mix, improved factory utilization, pricing discipline, and ongoing operational efficiencies following prior-year inventory corrections.

Operating income rose 103% to $997 million, underscoring the company's high operating leverage as revenues recovered.

Trailing-12-month operating cash flow reached $5.054 billion, representing 43% of revenue, while free cash flow totaled $4.56 billion, or 39% of revenue, highlighting ADI's industry-leading cash conversion capabilities.

The company also returned $1 billion to shareholders during the quarter through a combination of dividends and share repurchases.

Meanwhile, the board approved an 11% increase in the quarterly dividend to $1.10 per share, payable in the March 2026 quarter, reinforcing ADI's commitment to consistent and growing capital returns.

For the fiscal second quarter of 2026, Analog Devices provided guidance projecting revenue of $3.5 billion, plus or minus $100 million.

Reported operating margin is expected in the range of approximately 36.4% plus or minus 150 basis points, while adjusted diluted earnings per share are forecasted at approximately $2.88, plus or minus 15 cents.