Analog Devices exceeded third-quarter fiscal 2026 expectations, reporting revenue of $4.02 billion and adjusted EPS of $3.45. Results were primarily bolstered by a significant rebound in the Industrial segment and massive year-over-year gains in Communications revenue related to AI data center infrastructure.
Key Highlights
- Industrial revenue reached $1.97 billion, a 53% year-over-year increase, signaling the completion of the inventory destocking cycle.
- Communications revenue surged 84% year-over-year to $655 million, fueled by strong demand for Intelligent Edge and data center solutions.
- Adjusted operating margin remained best-in-class at 50.0%, with guidance projecting expansion to 52.0% in the fourth quarter.
- The company maintained robust cash generation with trailing twelve-month free cash flow of $4.9 billion, representing 36% of total revenue.