Analog Devices (NASDAQ:ADI) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Analog Devices (NASDAQ:ADI) issued its quarterly earnings data on Wednesday. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.34 by $0.11, Zacks reports. Analog Devices had a net margin of 26.01% and a return on equity of 14.37%. Analog Devices updated its Q4 2026 guidance to 3.710-4.010 EPS.

Analog Devices Stock Performance

ADI opened at $376.63 on Wednesday. The stock’s 50 day simple moving average is $390.37 and its 200-day simple moving average is $370.30. The company has a current ratio of 1.75, a quick ratio of 1.34 and a debt-to-equity ratio of 0.21. The stock has a market cap of $183.45 billion, a PE ratio of 55.96, a P/E/G ratio of 1.01 and a beta of 1.20. Analog Devices has a 1 year low of $223.47 and a 1 year high of $445.91.

Key Stories Impacting Analog Devices

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: ADI posted record fiscal third-quarter revenue of $4.02 billion, up 40% year over year, while non-GAAP EPS of $3.45 exceeded the consensus estimate by $0.11. Industrial revenue increased 53% and communications revenue climbed 84%, highlighting strong demand in key end markets. Analog Devices Non-GAAP EPS and Revenue Results
• Positive Sentiment: Management raised fourth-quarter guidance above Wall Street expectations, calling for EPS of $3.71–$4.01 versus a $3.53 consensus and revenue of $4.2–$4.4 billion versus $4.1 billion expected. The midpoint implies continued momentum into the next quarter.
• Positive Sentiment: Cash generation remains strong, with $5.5 billion of trailing-12-month operating cash flow and $4.9 billion of free cash flow. ADI returned approximately $1.7 billion to shareholders and declared a quarterly dividend of $1.10 per share. Analog Devices Fiscal Third Quarter 2026 Financial Results
• Neutral Sentiment: Analyst sentiment remains favorable: Cantor Fitzgerald reaffirmed an Overweight rating with a $550 price target, while the reported six-month median target is $460. These targets suggest analysts see additional upside, although they may not immediately affect trading.
• Negative Sentiment: ADI’s valuation remains demanding, with a P/E ratio near 56, leaving the stock vulnerable to profit-taking even after strong results. The shares also entered the report under pressure amid weakness in semiconductor and AI stocks, higher Treasury yields and concerns about rich technology valuations.
• Negative Sentiment: Reported insider activity has been heavily skewed toward selling: insiders made 81 sales and no purchases during the past six months. While such transactions may be routine, the pattern can add to investor caution.

Insider Buying and Selling at Analog Devices

In other news, Director Ray Stata sold 1,416 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $377.37, for a total transaction of $534,355.92. Following the completion of the transaction, the director directly owned 114,511 shares of the company’s stock, valued at approximately $43,213,016.07. This trade represents a 1.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Martin Cotter sold 17,594 shares of Analog Devices stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $418.00, for a total transaction of $7,354,292.00. Following the sale, the senior vice president owned 56,332 shares in the company, valued at approximately $23,546,776. This trade represents a 23.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 105,274 shares of company stock worth $42,247,986 over the last three months. 0.36% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Timmons Wealth Management LLC acquired a new position in shares of Analog Devices in the 4th quarter worth approximately $40,000. Atlas Capital Advisors Inc. acquired a new stake in Analog Devices in the 4th quarter valued at $44,000. Kemnay Advisory Services Inc. bought a new stake in Analog Devices in the fourth quarter valued at $53,000. Prosperity Bancshares Inc bought a new stake in Analog Devices in the fourth quarter valued at $65,000. Finally, Golden State Wealth Management LLC raised its stake in Analog Devices by 15.6% during the fourth quarter. Golden State Wealth Management LLC now owns 303 shares of the semiconductor company’s stock worth $82,000 after acquiring an additional 41 shares in the last quarter. Institutional investors own 86.81% of the company’s stock.

Analysts Set New Price Targets

ADI has been the topic of a number of research analyst reports. Wells Fargo & Company raised their target price on Analog Devices from $470.00 to $515.00 and gave the company an “overweight” rating in a report on Thursday, May 21st. Oppenheimer increased their price objective on Analog Devices from $400.00 to $450.00 and gave the company an “outperform” rating in a research report on Tuesday, May 12th. Sanford C. Bernstein restated a “market perform” rating and issued a $430.00 price objective on shares of Analog Devices in a research note on Thursday, May 21st. Wolfe Research reiterated an “outperform” rating and set a $475.00 target price on shares of Analog Devices in a research note on Thursday, May 21st. Finally, Citigroup increased their price target on shares of Analog Devices from $400.00 to $460.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Two analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $441.00.

Analog Devices Company Profile

Analog Devices, Inc (NASDAQ: ADI) is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.

The company’s product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.