Analog Devices (ADI) — Company Research

Last Updated: 13 August 2026

Analog Devices is the world's second-largest analog semiconductor company by market value, and one of the very few chipmakers whose products are measured in decades rather than product cycles. It designs high-performance analog, mixed-signal, power and digital-signal-processing integrated circuits that sit at the boundary between the physical world and digital computation — sensing, converting, conditioning and powering. FY2025 revenue was $11,019.7m across roughly several thousand analog ICs, sold into four end markets: Industrial, Automotive, Communications and Consumer. After a brutal FY2024 inventory correction that cut revenue 23.4%, ADI has staged an unusually sharp recovery: Q2 FY2026 revenue rose 37% year on year to a record $3,623m, adjusted gross margin hit a record 73.0%, and management guided the current quarter to $3.9bn. The engine has changed too — data centre now accounts for more than three-quarters of Communications revenue, and on 7 July 2026 ADI closed a $1.5bn all-cash acquisition of Empower Semiconductor to move into vertical power delivery for AI processors. This report sets out what the filings say, with Q3 FY2026 results due on 19 August 2026.

1. Company Snapshot

Field	Value
Company	Analog Devices, Inc.
Listing	NASDAQ Global Select Market, ticker ADI (common stock, $0.16 2/3 par value)
Sector / industry	Technology — Semiconductors & Related Devices (SEC SIC 3674)
CEO / Leadership	Vincent Roche, Chief Executive Officer and Chair. Richard Puccio, EVP & Chief Financial Officer. No succession has been announced; Roche was re-elected to the board at the 11 March 2026 annual meeting
Headquarters	One Analog Way, Wilmington, Massachusetts, USA
Founded	Incorporated in Massachusetts in 1965
Employees	Approximately 24,500 as of 1 November 2025, of whom about 13,000 are in engineering roles; FY2025 voluntary turnover 7.2% (FY2025 Form 10-K)
Fiscal year	52/53 weeks ending the Saturday nearest 31 October. FY2025 ended 1 November 2025
Market cap	$187.25bn (487,087,040 shares at the $384.43 close of 12 August 2026)
Revenue (FY2025)	$11,019.7m, up 16.9% year on year
Net income (FY2025)	$2,267.3m GAAP; GAAP diluted EPS $4.56, adjusted diluted EPS $7.79
Dividend	$1.10 per share per quarter, $4.40 annualised. Raised 11% in February 2026, the 22nd consecutive annual increase
Shares outstanding	487,087,040 as of 2 May 2026
Patents	Approximately 4,780 US patents plus around 500 published pending US applications as of 1 November 2025

2. Bull Case & Bear Case

Bull Case

• Cyclical recovery with record margins: Q2 FY2026 revenue of $3,623m was up 37% year on year with adjusted gross margin at a record 73.0% and adjusted operating margin 49.0%, all above the high end of guidance. Management guided Q3 FY2026 to $3.9bn plus or minus $100m and adjusted EPS of $3.30 plus or minus $0.15 — implying the recovery is still accelerating, not flattening.
• AI data centre has become a real growth engine: Communications revenue rose 79% year on year in Q2 FY2026, and on the earnings call management said data centre now represents more than three-quarters of that end market, with growth split roughly equally between the power and optical portfolios. Data-centre revenue grew around 50% in FY2025 and accelerated again in FY2026.
• Empower Semiconductor buys a seat at the AI power table: the $1.5bn all-cash acquisition closed on 7 July 2026, bringing Integrated Voltage Regulator and silicon-capacitor technology for high-density power delivery directly at the processor. Empower's silicon capacitors are already in production and IVR programmes are running with hyperscalers and AI silicon providers; ADI positions the combination as a grid-to-core power partner across the AI stack.
• Structurally high cash generation and an unbroken capital-return record: free cash flow was $4,565m on a trailing-twelve-month basis to 2 May 2026, 36% of revenue, and $5,043m was returned to shareholders over the same period. The dividend has risen for 22 consecutive years and $9.7bn of buyback authorisation remained available at FY2025 year end.
• Products with unusually long lives and no single dominant customer: ADI states its analog ICs typically have long product life cycles, with many individual parts serving several hundred end customers and no end customer above 10% of revenue. That combination of design-in stickiness and breadth is what has historically let the company hold pricing through downturns.

Bear Case

• The comparison base is now brutally hard: a record 73.0% adjusted gross margin and 49.0% adjusted operating margin achieved on 37% revenue growth is a demanding platform from which to grow. ADI's own risk factors describe the semiconductor market as "cyclical and subject to significant economic downturns," and its FY2023-to-FY2024 revenue drop of 23.4% is the recent proof of exactly how fast that reverses.
• Working capital is already flashing amber: inventory rose from $1,656.3m at 1 November 2025 to $1,848.4m at 2 May 2026, and receivables jumped from $1,436.1m to $2,051.7m. That $808.0m working-capital outflow cut Q2 FY2026 operating cash flow to 24% of revenue from 43% in Q1. Inventory build into a demand air-pocket is how the last correction started.
• China is a larger dependency than ever, into a tightening export regime: China was $2,858.3m of FY2025 revenue, 25.9% of the total and up 34% year on year, ADI's largest market after the United States. Its own disclosure states export restrictions "have impacted our revenues and results of operations in China and elsewhere," and management has acknowledged greater China exposure than at any prior point.
• Automotive, 30% of FY2025 revenue, has stalled: the segment grew just 2% year on year in Q2 FY2026 and 5% over six months, against Industrial at 56% and Communications at 79%. Its share of quarterly revenue fell from 32% to 24% in a year. Growth is explicitly content-led rather than unit-led, so it depends on per-vehicle content gains and on China ADAS adoption timing.
• Two unresolved cybersecurity matters and a widening balance sheet: ADI disclosed on 29 July 2026 that its investigation into a 23 June 2026 unauthorised access "has found that certain files were exfiltrated," with the scope still being determined, plus a separate 26 July 2026 matter still being assessed. Separately, long-term debt rose from $6,634.3m at FY2024 year end to $8,145.1m at FY2025 year end, and ADI added a second $3.0bn revolver on 2 July 2026 carrying an EBITDA-to-interest covenant of at least 3.00 to 1.00.

3. Revenue Segments

ADI reports a single operating segment but discloses revenue across four end markets. FY2025 figures are per the FY2025 Form 10-K.

Segment / end market	% of revenue	What it is
Industrial — $4,929.4m FY2025, up 15%	45%	Industrial automation (condition-based monitoring, industrial power supplies, robotics, motion control, factory and process control), instrumentation and measurement, aerospace and defence, and electronic test and measurement. ADI attributes FY2025 growth to customer inventory normalising plus strength in test equipment and aerospace and defence.
Automotive — $3,277.9m FY2025, up 16%	30%	Signal-processing content across electrification, digital cabin and autonomous platforms: audio, voice processing and connectivity, battery monitoring and management, video processing and networking, and intelligent power. Key platforms are GMSL, functionally safe power and the A2B automotive audio bus.
Consumer — $1,434.6m FY2025, up 19%	13%	Portable devices — smartphones, tablets, handheld gaming and wearables — for media and vital-signs monitoring, prosumer audio and video equipment, and hearable devices including headphones, earbuds and hearing health.
Communications — $1,377.9m FY2025, up 26%	13%	Wireless communications (cellular base stations, satellite and terrestrial broadband access, microwave backhaul, two-way radio, fixed wireless access) and Data Center. Management stated on the Q2 FY2026 call that data centre is now more than three-quarters of this end market.

ADI assigns revenue to end markets using product technical characteristics together with "sold to" and "ship to" customer data and end application, and restates prior periods when the methodology changes. This is why the FY2026 quarterly mix — Automotive 24% and Communications 15% in Q2 FY2026 — differs materially from the FY2025 annual mix above.

4. Business Model & Moat

How it makes money. ADI sells high-performance analog, mixed-signal, power and DSP integrated circuits, increasingly bundled with software and reference designs. The portfolio runs to several thousand analog ICs, many of which serve several hundred end customers each. Around 56% of FY2025 revenue went through third-party distributors and roughly 44% direct. Revenue is recognised on product shipment; there is no meaningful subscription or recurring-licence component.

Where the moat comes from. Three things, in ADI's own framing. First, product longevity — the 10-K states analog ICs "typically have long product life cycles," so a design win can pay out for a decade or more and the installed base is expensive for a customer to re-qualify away from. Second, breadth without concentration: no end customer exceeds 10% of revenue, so no single design loss is structurally damaging. Third, an engineering-heavy support model — roughly 13,000 of 24,500 employees are engineers, backed by field application engineers who embed ADI parts into customer designs, plus web-based selection and design tools.

The hybrid manufacturing model. ADI runs internal wafer fabs in Wilmington, Massachusetts; Camas, Washington; Beaverton, Oregon; and Limerick, Ireland, with assembly, wafer sort and test in Penang, Malaysia (now classified as held for sale), the Philippines and Thailand. It states it "source[s] more than half of our wafer requirements annually from third-party wafer fabrication foundries, such as Taiwan Semiconductor Manufacturing Company (TSMC) and others," with the remainder internal. That flexes utilisation up in an upturn and offloads fixed cost in a downturn — and is a direct reason the FY2026 gross margin recovery has been so steep. It is also a concentration risk, which ADI acknowledges alongside "tensions across the Taiwan Strait."

Capital return policy. ADI raised the quarterly dividend 11% to $1.10 in February 2026, its 22nd consecutive annual increase. Cumulative buybacks stand at roughly 216.5 million shares for about $17.0bn against a total authorisation of $26.7bn, leaving $9.7bn available at FY2025 year end. In FY2025 the company returned 96% of free cash flow to shareholders: $2.2bn of buybacks plus $1.9bn of dividends against $4,279m of free cash flow. FY2026 capital expenditure is guided at 4% to 6% of revenue.

Customer and channel concentration. No end customer is above 10% of revenue, but distribution is concentrated: one distributor was 24% of FY2025 revenue and a second 13%. Distributors can terminate representation with little advance notice, receive price-adjustment credits and can return qualifying product for credit — so channel inventory decisions sit partly outside ADI's control.

5. Financial Health

All figures below are from ADI's Form 10-K filings, quarterly earnings press releases and SEC XBRL company facts. Fiscal years are ADI fiscal years ending the Saturday nearest 31 October.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021 (ended 30 Oct 2021)	7,318.3	+30.6%	$3.46	$6.46	$2.69†	$6,253.2m
FY2022 (ended 29 Oct 2022)	12,014.0	+64.2%	$5.25	$9.57	$2.97	$6,548.6m
FY2023 (ended 28 Oct 2023)	12,305.5	+2.4%	$6.55	$10.09	$3.34	$5,902.5m
FY2024 (ended 2 Nov 2024)‡	9,427.2	−23.4%	$3.28	$6.38	$3.62	$6,634.3m
FY2025 (ended 1 Nov 2025)	11,019.7	+16.9%	$4.56	$7.79	$3.89	$8,145.1m

† FY2021 is dividends cash paid per share; ADI's XBRL dividends-declared-per-share tag begins in FY2022, so a declared-basis FY2021 figure is not available as a tagged primary figure. ‡ FY2024 was a 53-week year (371 days); FY2023 and FY2025 were 52-week years. The FY2024 decline therefore understates the per-week cyclical fall, and FY2025's +16.9% recovery is measured against a 53-week base, so underlying weekly growth was higher than 16.9%. Long-term debt is the non-current balance; current maturities were $0 in FY2022 and FY2025, $499.1m in FY2023 and $399.6m in FY2024. FY2021 revenue includes only a partial year of Maxim Integrated, which closed in August 2021, so the FY2021-to-FY2022 step-up is not organic.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 FY2026 (ended 2 May 2026)	$3,623m	$3.09	$2.40
Q1 FY2026 (ended 31 Jan 2026)	$3,160m	$2.46	$1.69
Q4 FY2025 (ended 1 Nov 2025)	$3,076m	$2.26	$1.60
Q3 FY2025 (ended 2 Aug 2025)	$2,880m	$2.05	$1.04
Q2 FY2025 (ended 3 May 2025)	$2,640m	$1.85	$1.14
FY2025 full year	$11,020m	$7.79	$4.56

Cash flow and balance sheet. FY2025 operating cash flow was $4,812.2m against capital expenditure of $533.6m, giving free cash flow of $4,278.7m — 39% of revenue. Depreciation was $406.8m and amortisation of intangibles $1,592.0m, a combined $1,998.8m; the amortisation line is dominated by Maxim and Linear Technology purchase accounting and is the single largest GAAP-to-adjusted bridge item, running at $394.0m of acquisition-related expense in Q2 FY2026 alone. On a trailing-twelve-month basis to 2 May 2026, operating cash flow was $5,106.5m, capital expenditure $541.3m and free cash flow $4,565.2m. At 2 May 2026 ADI held $2,436.9m of cash and equivalents plus $1,002.4m of short-term investments, against $7,235.4m of non-current long-term debt, $899.2m of current maturities and $550.2m of commercial paper — total debt of $8,684.8m. The nearest bond maturity is the $900.0m 2026 Notes due December 2026, already reclassified to current. Note that the $1.5bn Empower Semiconductor purchase closed on 7 July 2026, after this balance-sheet date, and will have reduced the cash balance accordingly.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Share price	$384.43 at the close of 12 August 2026 (prior session $385.30)
Market cap	$187.25bn (487,087,040 shares at $384.43)
Trailing P/E (GAAP)	57.5x on trailing-twelve-month GAAP diluted EPS of $6.69. On trailing adjusted EPS of $9.86 (Q3 FY2025 $2.05 + Q4 FY2025 $2.26 + Q1 FY2026 $2.46 + Q2 FY2026 $3.09) the multiple is 39.0x. The gap is almost entirely acquisition-related amortisation from Maxim and Linear Technology.
P/E (forward)	25.5x on a forward EPS estimate of $15.06
P/S (TTM)	14.7x (market cap $187.25bn / trailing-twelve-month revenue $12,740.2m to 2 May 2026)
Enterprise value	$192.50bn (market cap $187.25bn + total debt $8,684.8m − cash and short-term investments $3,439.3m per the 2 May 2026 balance sheet). Total debt is $7,235.4m non-current long-term debt + $899.2m current maturities + $550.2m commercial paper.
EV/EBITDA (TTM)	31.5x (EV $192.50bn / trailing-twelve-month EBITDA $6,104.0m). EBITDA is trailing operating income of $4,139.9m plus depreciation of $418.9m and amortisation of intangibles of $1,545.2m. The wider amortisation-inclusive D&A total is used here, which is what makes ADI's EBITDA multiple look far cheaper than its GAAP P/E.
P/FCF	41.0x (market cap $187.25bn / free cash flow $4,565.2m; FCF = trailing operating cash flow $5,106.5m − capital expenditure $541.3m per the cash flow statement)
Dividend yield	1.14% ($4.40 annualised / $384.43)
52-week high	$445.91 intraday on 22 June 2026; closing-basis high $445.48 the same day. The current price is 13.7% below that close.
52-week low	$223.47 intraday on 7 November 2025; closing-basis low $225.20 on 20 November 2025. The current price is 72.0% above that intraday low.
Short interest (% of float)	2.24% — 9,768,175 shares short at the 31 July 2026 settlement date against a free float of 468.3m shares. Short interest peaked near 12.0m shares in June 2026 and has fallen about 19% since.
Days to cover	2.3 (short interest ratio at the 31 July 2026 settlement date)

You can chart ADI against its peer set on our Live Charts page, and track the macro releases that drive semiconductor demand on the Economic Calendar.

7. What Are They Building

Research and development. ADI spent $1,766.0m on R&D in FY2025, 16% of revenue, up 19% on FY2024's $1,487.9m. Q2 FY2026 R&D was $509.3m, up 15% year on year, with $976.7m spent in the first half of FY2026.

Data-centre power — the flagship bet. ADI announced the acquisition of Empower Semiconductor of Milpitas, California on 19 May 2026 for $1.5bn in cash and completed it on 7 July 2026. The rationale in ADI's own words: "As AI compute scales, power density — not just total watts — has become the limiting factor... By enabling power conversion closer to the processor, the combined solution shortens the power delivery path and improves efficiency." Empower brings Integrated Voltage Regulator technology and silicon capacitors, the latter already in production, with IVR programmes advancing alongside hyperscalers and AI silicon providers. Empower CEO Tim Phillips continues to lead IVR development inside ADI. Management expects a more meaningful revenue contribution in FY2027. Separately, ADI has disclosed that it shipped its smart power stage to a first vertical power customer and is seeing accelerating adoption of intermediate bus converter modules for 48V and 54V rack distribution. Power delivery is roughly a third of data-centre power revenue and DC power control another third. ADI has not named specific hyperscaler design wins and publishes no content-per-rack dollar figure.

Automotive connectivity. ADI released A2B 2.0, the second generation of its Automotive Audio Bus, to production on 28 April 2026. On the Q2 FY2026 call it named GMSL, functionally safe power and A2B as the three key automotive content-expansion platforms, and noted that EV battery management systems returned to year-on-year growth after an extended decline, driven by EV penetration in Europe and China. GMSL and E2B are being demonstrated together in software-defined-vehicle applications, and a GMSL-enabled multi-camera perception system for robotic vision has been shown using automotive-grade links for visual SLAM. TIER IV has launched a GMSL2-to-10GbE conversion module jointly with ADI.

Software and tools. CodeFusion Studio 2.0, an upgrade to ADI's open-source embedded development platform, launched on 3 November 2025 with an integrated debug ecosystem, memory visualisation, enhanced GDB tooling, coredump analysis and a concept-stage AI debug assistant. ADI Power Studio and a set of new web-based design tools launched on 14 October 2025. The FY2025 10-K frames the wider push as expanding "capabilities in software, digital platforms and AI... intended to enhance system-level performance, improve design efficiency, reduce complexity and help customers accelerate time to market."

Robotics and health. Industrial automation explicitly includes industrial robotics, where ADI says it co-creates with customers on dynamic behaviour, precision, worker safety and machine health. At Embedded World 2026 it demonstrated real-time depth sensing, object recognition and gesture interpretation for manufacturing, healthcare and service robotics. The Consumer end market covers vital-signs monitoring in wearables and hearing-health devices.

Manufacturing capacity. The disclosed capacity programme predates 2026: more than $1bn announced in July 2023 to expand Beaverton, Oregon and convert it to a full 8-inch fab; a finalised $12m CHIPS Act award for Oregon; up to $105m of proposed direct CHIPS funding for Camas, Washington under a non-binding memorandum of terms signed on 16 January 2025; and a 45,000 sq ft R&D and manufacturing expansion at the Limerick, Ireland campus. No new fab announcement was made between 1 May and 13 August 2026; forward capital expenditure is guided only as 4% to 6% of FY2026 revenue. The Penang, Malaysia assembly and test facility is being sold, not expanded.

8. Peer Comparison

Peer	Market cap (August 2026)	Key 2025 metric
Texas Instruments (NASDAQ: TXN)	$252.60bn, checked 13 August 2026	FY2025 revenue $17,682m for the year ended 31 December 2025, up from $15,641m in FY2024; trailing-twelve-month revenue $19,453m
Infineon Technologies (XETRA: IFX)	€81.99bn, approximately $94.5bn at 13 August 2026 rates	Trailing-twelve-month revenue €15,591m, approximately $18.0bn, at a gross margin of 41.1%
NXP Semiconductors (NASDAQ: NXPI)	$58.86bn, checked 13 August 2026	Trailing-twelve-month revenue $13,185m at a gross margin of 56.1%
STMicroelectronics (NYSE: STM)	$48.36bn, checked 13 August 2026	FY2025 revenue $11,800m for the year ended 31 December 2025, down from $13,269m in FY2024; trailing-twelve-month revenue $13,099m
Microchip Technology (NASDAQ: MCHP)	$43.14bn, checked 13 August 2026	FY2026 revenue $4,713.1m for the fiscal year ended 31 March 2026, up from $4,401.6m in FY2025
Renesas Electronics (TSE: 6723)	¥6,933bn, approximately $43.5bn at 13 August 2026 rates	Trailing-twelve-month revenue ¥1,486bn, approximately $9.3bn, at a gross margin of 58.8%

ADI's $187.25bn market capitalisation is second only to Texas Instruments in this group despite generating roughly 65% of TXN's trailing revenue — the gap reflects ADI's margin structure, with FY2025 adjusted gross margin of 69.3% rising to a record 73.0% in Q2 FY2026. Note that TXN, NXPI, STM and Infineon report on calendar years, Microchip's fiscal year ends 31 March, and Renesas reports in yen, so revenue figures are not directly period-comparable.

9. Insider Activity

Chief Executive Officer and Chair Vincent Roche has been the most active seller, running an identical 10,000-share option exercise and immediate sale at a $108.08 strike in each of June, July and August 2026, at successively lower realised prices. Co-founder and director Ray Stata has sold a roughly 2,832-share tranche each month, and director Karen Golz has sold 1,000 shares monthly under a Rule 10b5-1 plan adopted 12 March 2026. ADI has filed 50 Form 4s so far in 2026. Every reported open-market transaction in 2026 was a sale; no open-market insider purchases were found. Aggregate disposals across the eight filings below total approximately $21.8m.

Name	Date	Type	Shares	Price	Value	Plan Type
Ray Stata	05 Aug 2026	Sale	1,416	$375.63–$383.44	~$536,000	Open market, no 10b5-1 footnote
Ray Stata	04 Aug 2026	Sale	1,416	$370.17–$381.80	~$534,400	Open market, no 10b5-1 footnote
Vincent Roche	03 Aug 2026	Option exercise and sale	10,000	$363.00 (strike $108.08)	$3,630,000	Exercise and sell, no 10b5-1 footnote
Karen Golz	13 Jul 2026	Sale	1,000	$389.83	$389,830	Rule 10b5-1 plan adopted 12 Mar 2026
Ray Stata	07–08 Jul 2026	Sale	2,832	$371.48–$388.73	~$1,079,000	Open market, no 10b5-1 footnote
Vincent Roche	01 Jul 2026	Option exercise and sale	10,000	$389.75 (strike $108.08)	$3,897,500	Exercise and sell, no 10b5-1 footnote
Karen Golz	12 Jun 2026	Sale	1,000	$411.95	$411,950	Rule 10b5-1 plan adopted 12 Mar 2026
Martin Cotter	02 Jun 2026	Option exercise and sale	17,594	$418.00 (strike $83.48)	$7,354,292	Exercise and sell, no 10b5-1 footnote
Vincent Roche	01 Jun 2026	Option exercise and sale	10,000	$404.25 (strike $108.08)	$4,042,500	Exercise and sell, no 10b5-1 footnote

10. Key Risks

• Semiconductor cyclicality and inventory correction: ADI's own 10-K states "the semiconductor market has historically been cyclical and subject to significant economic downturns at various times." Revenue fell from $12,305.5m in FY2023 to $9,427.2m in FY2024, a 23.4% decline, before recovering to $11,019.7m in FY2025. Inventory is building again — $1,848.4m at 2 May 2026 against $1,656.3m at 1 November 2025 — and receivables rose 42.9% over the same two quarters, which together cut Q2 FY2026 operating cash flow to 24% of revenue from 43% in Q1. Inventories are written down to net realisable value based on what ADI calls "significant judgments made by us about future demand."
• China exposure and export controls: China was $2,858.3m, or 25.9%, of FY2025 revenue, up 34% year on year, second only to the United States at $3,238.1m. ADI discloses that export restrictions "limit our ability to sell to certain Chinese companies and to third parties that do business with those companies" and that these "have impacted our revenues and results of operations in China and elsewhere." Management has acknowledged greater China exposure than at any prior point, which cuts both ways.
• Tariffs and trade policy: ADI lists "import, export or sector-based tariffs, changes to export classifications or other restrictions imposed by the U.S. government," particularly regarding China, as a specific risk factor, and states that additional duties or retaliatory action "have had and may continue to have an adverse effect" on results. A concrete effect has already been observed: tariff-driven customer pull-ins during 2025 pulled demand forward and contributed to a below-seasonal Q1 FY2026. ADI has not published a quantified Section 232 exposure figure.
• Automotive stagnation: Automotive was $3,277.9m and 30% of FY2025 revenue but grew only 2% year on year in Q2 FY2026 and 5% over six months, cutting its share of quarterly revenue from 32% to 24% in a year. Growth is content-led rather than unit-led, so it depends on continued per-vehicle content gains against a soft unit backdrop and on China ADAS adoption timing, including the arrival of Level 3 systems.
• Distributor concentration and channel risk: 56% of FY2025 revenue flowed through third-party distributors, with one distributor at 24% of revenue and another at 13%. ADI's risk factor notes distributors "generally represent product lines offered by several companies and thus could reduce their sales efforts for our products" and "could terminate their representation of us with little advance notice." Distributors also receive price-adjustment credits and may return qualifying product for credit, so channel inventory decisions are only partly within ADI's control.
• Foundry and subcontractor dependence: ADI sources more than half its annual wafer requirements from third-party foundries, principally TSMC, and makes extensive use of third-party subcontractors for assembly and test. Its own language warns that "a prolonged disruption, shut-down or inability to utilize one or more of our or our third parties' manufacturing facilities" could "delay production, shipments and revenue," and it separately flags "tensions across the Taiwan Strait that may adversely affect our operations in Taiwan, our customers and the technology industry supply chain."
• Pricing pressure and competitive erosion: "Increased competition in certain markets has resulted in and may continue to result in declining average selling prices, reduced gross margins and loss of market share in those markets." ADI also flags that consolidation among competitors "could negatively impact our competitive position and market share." The current record 73.0% adjusted gross margin makes the forward comparison base unusually demanding.
• Cybersecurity — two live, unresolved matters: ADI disclosed in an 8-K on 29 July 2026 that its investigation into a 23 June 2026 unauthorised access "has found that certain files were exfiltrated," with the scope of the exfiltrated information still under investigation, and separately that on 26 July 2026 it "was made aware of public reports regarding a disparate cybersecurity matter and is currently assessing its validity, scope, and any potential impact." ADI's own listed downside risks include potential regulatory inquiries and litigation, effects on customer and regulator relationships, and the availability of insurance coverage. Its position that the June incident is not "reasonably likely to materially impact its business" is explicitly provisional. The shares fell 3.21% on the disclosure date.
• Leverage and currency exposure: long-term debt rose from $6,634.3m at FY2024 year end to $8,145.1m at FY2025 year end, and ADI added a second $3.0bn revolving facility on 2 July 2026 carrying an EBITDA-to-interest covenant of at least 3.00 to 1.00. On foreign exchange, the FY2025 10-K states that "an immediate 10% unfavorable movement in foreign currency exchange rates would result in approximately $89.6 million of losses" on net unhedged exposures, up sharply from $32.2m a year earlier, with the euro the largest single exposure.

11. Recent Developments

• 19 May 2026 — ADI agrees to buy Empower Semiconductor for $1.5bn in cash. The all-cash deal adds Integrated Voltage Regulator and silicon-capacitor technology for high-density power delivery to AI processors. Approved by both boards and subject to the HSR waiting period, with a targeted close in the second half of calendar 2026.
• 19 May 2026 — Board declares a quarterly dividend of $1.10 per share. Ex-dividend and record date 2 June 2026, payable 16 June 2026.
• 20 May 2026 — Record Q2 FY2026 results beat the high end of guidance. Revenue $3,623m, up 37% year on year; GAAP diluted EPS $2.40; adjusted diluted EPS $3.09; adjusted gross margin a record 73.0%; adjusted operating margin 49.0%. Industrial grew 56%, Communications 79%, Consumer 23% and Automotive 2%. Q3 FY2026 guidance was set at revenue of $3.9bn plus or minus $100m and adjusted EPS of $3.30 plus or minus $0.15.
• 16 Jun 2026 — $1.10 per share dividend paid. Roughly $536m of cash out during the quarter, part of $1,309m returned in Q2 FY2026 alongside $773m of buybacks.
• 22 Jun 2026 — ADI shares set a 52-week closing high of $445.48. Intraday high $445.91, the peak before the summer pullback.
• 23 Jun 2026 — ADI identifies unauthorised access to certain company systems. Incident-response protocols were activated, external cybersecurity experts engaged and law enforcement notified. Operations were not interrupted, but the investigation subsequently found that certain files had been exfiltrated. Disclosed publicly on 29 July 2026.
• 02 Jul 2026 — ADI enters a new $3.0bn 364-day revolving credit facility. Bank of America is administrative agent; the facility matures 1 July 2027, is extendable, and carries an option to convert outstanding loans to a one-year non-amortising term loan for a 0.50% fee, plus an EBITDA-to-interest covenant of at least 3.00 to 1.00. This sits alongside the existing five-year $3.0bn revolver dated 11 April 2025.
• 07 Jul 2026 — Empower Semiconductor acquisition completed. ADI describes the combination as positioning it as "a leading strategic, system-level grid-to-core power partner across the entire AI ecosystem."
• 23 Jul 2026 — ADI confirms Q3 FY2026 results for 19 August 2026. Press release at 7:00 a.m. ET with a conference call at 10:00 a.m. ET.
• 26 Jul 2026 — A second, separate cybersecurity matter emerges. ADI states it was "made aware of public reports regarding a disparate cybersecurity matter" and began assessing its validity, scope and potential impact. Press reporting has linked this to an extortion group claiming roughly 570,000 stolen records.
• 29 Jul 2026 — 8-K filed disclosing both cybersecurity matters. ADI states it does not believe the June incident is reasonably likely to materially impact its business, operations or financial condition, that to its knowledge the data has not been publicly released or used fraudulently, and that it will notify affected parties and regulators as appropriate. The shares closed down 3.21%.
• 01–05 Aug 2026 — Insider selling cluster. Vincent Roche exercised 10,000 options at $108.08 and sold at $363.00 on 3 August; Ray Stata sold roughly 2,832 shares for about $1.07m across 4 and 5 August. The most recent SEC filing of any kind is the 6 August Form 4, and there has been no new ADI press release since 23 July 2026.

12. Key Dates

• 19 Aug 2026 — Q3 FY2026 results for the quarter ended 1 August 2026. Press release 7:00 a.m. ET, conference call 10:00 a.m. ET. Confirmed by ADI on 23 July 2026. Guidance is revenue of $3.9bn plus or minus $100m, GAAP EPS of $2.60 plus or minus $0.15 and adjusted EPS of $3.30 plus or minus $0.15.
• Expected 19 Aug 2026 — Next quarterly dividend declaration. ADI has declared each quarterly dividend alongside earnings; the ex-date, record date and payment date have not yet been published.
• 31 Oct 2026 — FY2026 fiscal year end, the Saturday nearest 31 October on ADI's 52/53-week convention.
• Expected Nov 2026 — Q4 and full-year FY2026 results. The FY2025 equivalent was released on 25 November 2025; no date has been announced.
• Expected Dec 2026 — $900.0m of 2026 Notes mature, the nearest bond maturity. Already reclassified to current debt on the 2 May 2026 balance sheet at $899.2m.
• Expected Mar 2027 — 2027 annual meeting of shareholders. The 2026 meeting was held on 11 March 2026; the 2027 date has not been published.
• 01 Jul 2027 — New $3.0bn 364-day revolving credit facility matures, subject to extension.
• 11 Apr 2030 — Existing five-year $3.0bn revolving credit facility matures.

No investor day or capital markets day has been announced. ADI's disclosed forward appearances are sell-side conferences, most recently the Bank of America Global Technology Conference announced on 21 May 2026. Further out, the debt maturity ladder runs from $440.2m of 2027 Notes in June 2027 through to $550.0m of 2054 Notes in April 2054. Discuss ADI and the wider semiconductor cycle with other members in the ChartsView Forum.

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