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.