Analog Devices Reports Record Q2 Earnings and Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 30 minutes ago
0mins
Should l Buy ADI?
Source: seekingalpha
- Strong Performance: Analog Devices reported second-quarter revenue of $3.62 billion, exceeding guidance by $100 million and setting a new record, indicating robust performance in industrial and data center sectors that is expected to drive future growth.
- Stable Margins: The gross margin for the second quarter was 73%, with earnings per share reaching $3.09, reflecting the company's success in cost control and operational efficiency despite inflationary pressures.
- Acquisition Plans: The company plans to acquire Empower Semiconductor to enhance its power technology portfolio, which is expected to expand its total addressable market within the rapidly growing AI accelerator space, further driving long-term growth.
- Optimistic Outlook: Management guided for third-quarter revenue to be around $3.9 billion and adjusted EPS of $3.30, demonstrating confidence in future performance, particularly in AI-driven infrastructure investments.
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Analyst Views on ADI
Wall Street analysts forecast ADI stock price to fall
23 Analyst Rating
20 Buy
3 Hold
0 Sell
Strong Buy
Current: 414.310
Low
265.00
Averages
320.55
High
400.00
Current: 414.310
Low
265.00
Averages
320.55
High
400.00
About ADI
Analog Devices, Inc. is a global semiconductor company. It combines analog, digital, artificial intelligence (AI), and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. It designs, manufactures, tests and markets a portfolio of solutions, including integrated circuits (ICs), software and subsystems that leverage high-performance analog, mixed-signal and digital signal processing technologies. Its product portfolio, domain specialization and advanced manufacturing capabilities extend across high-performance precision and high-speed mixed-signal, power management and processing technologies, including data converters, amplifiers, power management, power management, radio frequency ICs, edge processors and other sensors. Its IC product portfolio includes both general-purpose products used by a range of customers and applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analog Devices Set to Release Q2 Earnings on May 20
- Strong Earnings Expectations: Analog Devices is set to announce Q2 earnings on May 20, with an expected EPS of $2.90, reflecting a 56.8% year-over-year increase, which indicates significant improvement in profitability and is likely to boost investor confidence.
- Revenue Growth Forecast: The anticipated revenue for Q2 stands at $3.51 billion, representing a 33.0% year-over-year growth, showcasing the company's success in market demand and product innovation, potentially driving stock price appreciation.
- Outstanding Historical Performance: Over the past two years, Analog Devices has exceeded EPS and revenue estimates 100% of the time, demonstrating financial stability and effective management execution, which enhances market confidence in its future performance.
- Acquisition Plans: The company plans to acquire Empower Semiconductor for $1.5 billion, a move that not only expands its product portfolio but also enhances market competitiveness through resource and technology integration, further solidifying its leadership position in the semiconductor industry.
See More
Analog Devices Reports Record Q2 Earnings and Revenue
- Strong Performance: Analog Devices reported second-quarter revenue of $3.62 billion, exceeding guidance by $100 million and setting a new record, indicating robust performance in industrial and data center sectors that is expected to drive future growth.
- Stable Margins: The gross margin for the second quarter was 73%, with earnings per share reaching $3.09, reflecting the company's success in cost control and operational efficiency despite inflationary pressures.
- Acquisition Plans: The company plans to acquire Empower Semiconductor to enhance its power technology portfolio, which is expected to expand its total addressable market within the rapidly growing AI accelerator space, further driving long-term growth.
- Optimistic Outlook: Management guided for third-quarter revenue to be around $3.9 billion and adjusted EPS of $3.30, demonstrating confidence in future performance, particularly in AI-driven infrastructure investments.
See More
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- Bond Yield Decline: The 10-year T-note yield fell by 5 basis points to 4.62% as inflation expectations weakened, driven by a more than 3% drop in WTI crude oil prices, which provides support for the bond market and may prompt investors to reassess risk assets.
- Semiconductor Sector Strength: Nvidia's stock rose over 1% ahead of its earnings report, with Q1 sales expected to increase by 80% year-over-year, drawing market attention to its production ramp-up and competitive strategies, which could significantly impact its stock price and the broader AI economy.
- Mortgage Applications Drop: US MBA mortgage applications fell by 2.3% in the week ending May 1, with the purchase mortgage sub-index down 4.1%, indicating pressure on the housing market from high interest rates, which may lead to a slowdown in future consumer spending and investment.
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- ADI's Steady Dividend: ADI's Board of Directors declared a quarterly cash dividend of $1.10 per share, payable on June 16, 2026, demonstrating the company's commitment to returning value to shareholders and further solidifying its competitive position in the market.
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Stock Price Fluctuations of Multiple Companies
- Layoff Impact: Intuit announced a workforce reduction of about 3,000 employees, or 17% of its total staff, leading to a more than 3% drop in stock price, indicating urgent cost control measures that may affect its market competitiveness.
- Financial Guidance Reaffirmed: Hasbro reaffirmed its full-year adjusted EBITDA guidance of $1.40 billion to $1.45 billion, slightly below the market consensus of $1.44 billion, with shares dropping over 8%, reflecting market concerns about its profitability.
- Shareholder Confidence Boost: AMC Entertainment's stock surged 13% after CEO Adam Aron disclosed the purchase of 250,000 shares valued at approximately $344,000, demonstrating management's confidence in the company's future, potentially attracting more investor interest.
- Earnings Beat: Toll Brothers reported second-quarter earnings of $2.72 per share, exceeding analyst expectations of $2.57, with shares rising nearly 8%, indicating strong performance and growth potential in the real estate market.
See More
Analog Devices (ADI) Q2 2026 Earnings Transcript
See More
Analog Devices Set to Release Q2 Earnings on May 20
- Strong Earnings Expectations: Analog Devices is set to announce Q2 earnings on May 20, with an expected EPS of $2.90, reflecting a 56.8% year-over-year increase, which indicates significant improvement in profitability and is likely to boost investor confidence.
- Revenue Growth Forecast: The anticipated revenue for Q2 stands at $3.51 billion, representing a 33.0% year-over-year growth, showcasing the company's success in market demand and product innovation, potentially driving stock price appreciation.
- Outstanding Historical Performance: Over the past two years, Analog Devices has exceeded EPS and revenue estimates 100% of the time, demonstrating financial stability and effective management execution, which enhances market confidence in its future performance.
- Acquisition Plans: The company plans to acquire Empower Semiconductor for $1.5 billion, a move that not only expands its product portfolio but also enhances market competitiveness through resource and technology integration, further solidifying its leadership position in the semiconductor industry.
See More
Analog Devices Reports Record Q2 Earnings and Revenue
- Strong Performance: Analog Devices reported second-quarter revenue of $3.62 billion, exceeding guidance by $100 million and setting a new record, indicating robust performance in industrial and data center sectors that is expected to drive future growth.
- Stable Margins: The gross margin for the second quarter was 73%, with earnings per share reaching $3.09, reflecting the company's success in cost control and operational efficiency despite inflationary pressures.
- Acquisition Plans: The company plans to acquire Empower Semiconductor to enhance its power technology portfolio, which is expected to expand its total addressable market within the rapidly growing AI accelerator space, further driving long-term growth.
- Optimistic Outlook: Management guided for third-quarter revenue to be around $3.9 billion and adjusted EPS of $3.30, demonstrating confidence in future performance, particularly in AI-driven infrastructure investments.
See More
US Stocks Rebound Led by Semiconductor Gains
- Market Rebound: The S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 0.75%, and the Nasdaq 100 climbed by 1.24%, indicating a recovery amid lower bond yields and strong semiconductor stock performance, reflecting investor confidence in economic recovery.
- Bond Yield Decline: The 10-year T-note yield fell by 5 basis points to 4.62% as inflation expectations weakened, driven by a more than 3% drop in WTI crude oil prices, which provides support for the bond market and may prompt investors to reassess risk assets.
- Semiconductor Sector Strength: Nvidia's stock rose over 1% ahead of its earnings report, with Q1 sales expected to increase by 80% year-over-year, drawing market attention to its production ramp-up and competitive strategies, which could significantly impact its stock price and the broader AI economy.
- Mortgage Applications Drop: US MBA mortgage applications fell by 2.3% in the week ending May 1, with the purchase mortgage sub-index down 4.1%, indicating pressure on the housing market from high interest rates, which may lead to a slowdown in future consumer spending and investment.
See More
Multiple Companies Announce Quarterly Cash Dividends
- MAA Dividend Growth: Mid-America Apartment Communities announced a quarterly cash dividend of $1.53 per share, payable on July 31, 2026, marking the 130th consecutive dividend declaration, reflecting its robust financial performance as it has never reduced or suspended dividends in over 30 years as a public company.
- S&P Global's Long History: The Board of Directors of S&P Global approved a quarterly cash dividend of $0.97 per share, payable on June 10, 2026, with an annualized dividend rate of $3.88, showcasing the company's commitment to dividend payments since 1937 and its status as one of fewer than 30 companies in the S&P 500 that have increased dividends annually for over 50 years.
- Northrop Grumman's Dividend: Northrop Grumman declared a quarterly cash dividend of $2.47 per share, payable on June 17, 2026, indicating the company's disciplined capital allocation strategy that prioritizes investments in manufacturing capabilities and technologies to quickly meet customer needs.
- ADI's Steady Dividend: ADI's Board of Directors declared a quarterly cash dividend of $1.10 per share, payable on June 16, 2026, demonstrating the company's commitment to returning value to shareholders and further solidifying its competitive position in the market.
See More
Stock Price Fluctuations of Multiple Companies
- Layoff Impact: Intuit announced a workforce reduction of about 3,000 employees, or 17% of its total staff, leading to a more than 3% drop in stock price, indicating urgent cost control measures that may affect its market competitiveness.
- Financial Guidance Reaffirmed: Hasbro reaffirmed its full-year adjusted EBITDA guidance of $1.40 billion to $1.45 billion, slightly below the market consensus of $1.44 billion, with shares dropping over 8%, reflecting market concerns about its profitability.
- Shareholder Confidence Boost: AMC Entertainment's stock surged 13% after CEO Adam Aron disclosed the purchase of 250,000 shares valued at approximately $344,000, demonstrating management's confidence in the company's future, potentially attracting more investor interest.
- Earnings Beat: Toll Brothers reported second-quarter earnings of $2.72 per share, exceeding analyst expectations of $2.57, with shares rising nearly 8%, indicating strong performance and growth potential in the real estate market.
See More
Analog Devices (ADI) Q2 2026 Earnings Transcript
See More
