Analog Devices (ADI) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $3.62 billion, up 37% year-over-year, with growth across all end markets, led by Industrial and Communications.

• Net income more than doubled year-over-year to $1.18 billion, with diluted EPS up 111% to $2.40 and adjusted EPS up 67% to $3.09.

• Gross margin improved to 67.3% from 61.0% in the prior year quarter, with adjusted gross margin reaching 73.0%.

• Robust demand across industrial, data center, and communications segments drove growth.

• Strategic investments in manufacturing, R&D, and technology enhanced supply chain agility and product innovation.

Financial highlights

• Q2 revenue was $3.62 billion, up 15% sequentially and 37% year-over-year.

• EPS reached a record $3.09, up 26% sequentially and 67% year-over-year; diluted EPS was $2.40, up 111% year-over-year.

• Gross margin was 73% (adjusted) and 67.3% (reported), up from 61.0% year-over-year.

• Operating margin was 49% (adjusted) and 38.1% (reported), up 350 bps sequentially and 780 bps year-over-year.

• Free cash flow over the trailing 12 months was $4.6 billion, or 36% of revenue.

Outlook and guidance

• Q3 revenue expected at $3.9 billion ±$100 million.

• Operating margin at midpoint projected at 49% (adjusted) and ~39% (reported).

• Adjusted EPS forecasted at $3.30 ±$0.15; reported EPS projected at $2.60 ±$0.15.

• Continued above-seasonal growth anticipated in industrial, automotive, and communications segments; consumer expected down single digits sequentially.

• Quarterly dividends are expected to continue, subject to board approval.