Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ADI delivered a standout Q1 FY2026 with revenue surging 30.4% YoY to $3.16B, operating income more than doubling to $997M, and net income jumping 112.3% to $831M, reflecting a powerful cyclical recovery and strong operating leverage.
Revenue
$3.16B
+30.42% YoY
EPS (Diluted)
$1.69
+116.67% YoY
Gross Margin
64.7%
+5.7 pts YoY
Operating Income
$997.03M
+102.93% YoY
Source: SEC XBRL
Analog Devices (ADI) reported Q1 FY2026 revenue of $3.16B, up 30.4% year over year. Operating margin was 31.5%, up 11.2 points from 20.3% a year earlier. Operating cash flow was $1.37B, up 21.5% year over year. ADI's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 3.45 | 3.37 | Beat +2.4% |
| Jun 2026 | 3.09 | 2.93 | Beat +5.3% |
| Mar 2026This filing | 2.46 | 2.33 | Beat +5.4% |
| Dec 2025 | 2.26 | 2.24 | Beat +0.7% |
Adjusted (non-GAAP) EPS of $2.46 versus the $2.33 analyst consensus — a +5.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.69.
Compiled by AI from this SEC filing
Revenue grew 30.4% YoY to $3.16B in Q1 FY2026, up from $2.42B in Q1 FY2025, signaling a robust demand recovery across ADI's end markets after a prolonged inventory correction cycle.
Source: 10-Q Income Statement (XBRL Financial Data)
Gross margin improved significantly to 64.7% from 59.0% in the prior-year period, reflecting better factory utilization, favorable product mix, and operating leverage on higher revenue volumes.
Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
Operating income more than doubled to $997M (operating margin of 31.5%) from $491M (20.3% margin) a year ago, demonstrating that revenue growth is flowing through efficiently despite R&D and SG&A increases of 16.0% and 21.2% respectively.
Source: 10-Q Income Statement (XBRL Financial Data)
Operating cash flow rose 21.5% YoY to $1.37B, and ADI significantly accelerated share repurchases to $516M (up 222% YoY), reflecting management's confidence in the business and commitment to returning capital to shareholders.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Cash and equivalents grew 23.7% YoY to $2.91B, and the current ratio stands at 1.76x, indicating healthy short-term liquidity, though long-term debt increased modestly to $7.24B and stockholders' equity declined 3.7% YoY, partly reflecting buyback activity.
Source: 10-Q Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
ADI's business is highly sensitive to semiconductor industry cycles. The current recovery could reverse if customers re-enter inventory digestion phases, particularly in industrial and automotive end markets. A demand slowdown could compress margins rapidly given ADI's fixed-cost manufacturing base.
Source: 10-Q Financial Data (XBRL), industry context
Long-term debt increased 9.4% YoY to $7.24B while stockholders' equity fell 3.7% to $33.79B, partly driven by aggressive share buybacks of $516M in a single quarter. Continued capital returns at this pace could pressure the balance sheet if earnings growth moderates.
Source: 10-Q Balance Sheet & Cash Flow Statement (XBRL Financial Data)
R&D expense reached $467M in Q1 FY2026, representing approximately 14.8% of revenue. While necessary to maintain ADI's competitive position in high-performance analog and mixed-signal semiconductors, sustained high R&D investment limits earnings upside if revenue growth decelerates.
Source: 10-Q Income Statement (XBRL Financial Data)
As a global semiconductor company, ADI faces risks from U.S.-China trade tensions, export restrictions, and potential retaliatory measures that could limit access to key markets or supply chains. These risks are particularly acute for analog and mixed-signal chips used in defense and communications applications.
Source: 10-Q context, semiconductor industry regulatory environment
Current liabilities grew 45.8% YoY to $4.33B, significantly faster than current assets growth of 32.6%, causing the current ratio to tighten. While still above 1.0x at 1.76x, continued divergence could pressure near-term liquidity if operating cash flows soften.
Source: 10-Q Balance Sheet (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.16 $B | 2.42 $B | +30.42% |
Cost of Revenue $B | 1.12 $B | 0.99 $B | +12.33% |
Gross Profit $B | 2.04 $B | 1.43 $B | +42.98% |
Operating Income $M | 997.03 $M | 491.31 $M | +102.93% |
Net Income $M | 830.83 $M | 391.32 $M | +112.32% |
EPS (Basic) $ | 1.70 $ | 0.79 $ | +115.19% |
EPS (Diluted) $ | 1.69 $ | 0.78 $ | +116.67% |
R&D Expense $M | 467.40 $M | 402.89 $M | +16.01% |
SG&A Expense $M | 345.25 $M | 284.80 $M | +21.23% |
Answers draw on this SEC filing and the data on this page
Analog Devices delivered Q3 FY2026 revenue of $4.02 billion, up 40% year over year, with diluted EPS of $2.74, driven by broad-based demand and AI-related data center strength.
ADI delivered exceptional Q2 FY2026 results with revenue surging 37.2% YoY to $3.62B and net income more than doubling to $1.18B, driven by strong demand recovery and significant margin expansion across all profitability metrics.
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