What were Analog Devices’ (NASDAQ:ADI) total revenues for Q2 fiscal 2026?

Analog Devices reported total revenue of $3.62 billion for Q2 FY2026, a 37% year-over-year increase and ahead of the consensus estimate of $3.51 billion, driven by strong demand across all primary end markets.

Which business segments contributed most to Q2 revenue growth?

The Industrial segment led growth with 56% year-over-year expansion, accounting for ~50% of total revenue. Communications spiked 79% to 15% of revenue, while Automotive and Consumer divisions contributed 24% and 11%, respectively.

How did Analog Devices perform on profitability?

GAAP gross margin reached 67.3% and operating margin was 38.1%. Net income totaled $1.18 billion, lifting GAAP diluted EPS 111% year-over-year to $2.40. Adjusted non-GAAP operating margin expanded to 49%, with adjusted EPS of $3.09, exceeding Wall Street projections.

What drove the adjusted non-GAAP EPS beat?

The EPS beat was fueled by high-margin B2B operations, operational scale, and exclusion of acquisition/integration costs in the non-GAAP calculation.

How strong was cash generation during the quarter?

Trailing 12-month operating cash flow reached $5.11 billion, with free cash flow of $4.57 billion, yielding a 36% free cash flow margin, highlighting operational efficiency and strong liquidity.

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Analog Devices profit doubles on record industrial and comms chip demand

Written by Jon CuthbertPublished May. 20 2026Last Updated May. 20 2026

Analog Devices (NASDAQ: ADI) reported record financial results for its fiscal second quarter of 2026 ended May 2, 2026, delivering substantial top- and bottom-line expansion.

The performance outpaced the high end of management's initial projections, driven by multi-market volume acceleration and rigorous operational execution across its high-margin business-to-business (B2B) segments.

Total revenue for the fiscal second quarter surged 37% year-over-year to $3.62 billion, ahead of the consensus analyst estimate of $3.51 billion.

Growth was positive across all primary end markets.

The core Industrial business unit—which accounted for roughly 50% of aggregate revenue—grew 56% compared to the prior-year period.

The Communications segment recorded a 79% revenue spike to represent 15% of the quarterly mix, while the Automotive and Consumer divisions contributed 24% and 11% of sales, respectively.

The semiconductor manufacturer’s profitability metrics also expanded rapidly.

GAAP gross margin reached 67.3% with an operating margin of 38.1%.

Net income for the period settled at $1.18 billion, lifting GAAP diluted earnings per share by 111% year-over-year to $2.40.

On an adjusted non-GAAP basis, which isolates structural acquisition and integration costs, operating margin expanded to a robust 49% and adjusted diluted EPS rose to $3.09, beating Wall Street projections of $2.89.

Cash generation metrics highlighted the company's asset-light scale.

Trailing 12-month operating cash flow reached $5.11 billion, yielding trailing free cash flow of $4.57 billion—translating into an elite 36% free cash flow margin.

This robust liquidity enabled the deployment of $1.3 billion back to equity holders during the three-month period, split between $773 million allocated to open-market share buybacks and $536 million distributed via cash dividends.

The board declared a standard quarterly cash dividend of $1.10 per share, payable on June 16, 2026, to shareholders of record on June 2, 2026.

The earnings disclosure closely followed a separate corporate announcement detailing a definitive agreement for ADI to acquire Silicon Valley-based Empower Semiconductor in an all-cash transaction valued at $1.5 billion.

The acquisition, expected to close in the second half of calendar year 2026, aims to integrate advanced vertical power delivery technology into ADI's hardware portfolio to satisfy the severe power density requirements of next-generation artificial intelligence processors.

Backed by its record backlog and high utilization across its global manufacturing footprint, Analog Devices raised its consolidated financial outlook for the fiscal third quarter of 2026.

Management expects quarterly revenue to rise to approximately $3.9 billion (plus or minus $100 million).

Third-quarter diluted earnings per share are projected to land at a midpoint of $2.60 on a GAAP basis and $3.30 on an adjusted basis, comfortably exceeding the baseline consensus forecast previously set by analysts