Analog Devices, Inc. (ADI) AI Stock Analysis

Analog Devices, Inc. specializes in the design, manufacturing, testing, and distribution of integrated circuits, software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company's product line includes data converter solutions, power management products, high-performance amplifiers, radio frequency and microwave ICs, and micro-electro-mechanical systems solutions including accelerometers, gyroscopes, and inertial measurement units. Its offerings also extend to digital signal processing and system products. The company serves industrial automation, automotive electronics, consumer electronics, aerospace, and telecommunications markets through direct sales, third-party distributors, and independent representatives worldwide.

Annual revenue grew from $7.32B in FY2021 to $12.01B in FY2022 and $12.31B in FY2023, before declining 23.4% to $9.43B in FY2024. In FY2025, revenue rebounded 16.9% to $11.02B, with net income rising to $2.27B and gross margin reaching 61.5%. Over the 5-year period from FY2020 to FY2025, revenue grew at a CAGR of 14.5%. For the trailing twelve months, revenue reached $13.88B with a net profit margin of 29.8% and EPS of $8.42. In the latest quarter ended July 31, 2026, quarterly revenue grew 39.6% year-over-year, accompanied by a 163.5% surge in quarterly earnings.

As of July 31, 2026, Analog Devices held $2.32B in cash and short-term investments alongside total debt of $9.12B, resulting in net debt of $6.80B. Shareholders' equity stood at $33.55B out of $48.42B in total assets, yielding a debt-to-equity ratio of 0.27 and a current ratio of 1.25. During FY2025, the company generated $4.81B in operating cash flow and $4.28B in free cash flow. Capital allocation in FY2025 included $533.6M in capital expenditures, $2.16B in share buybacks, and $1.92B in dividends paid.

With a market capitalization of $191.62B and enterprise value of $193.47B, Analog Devices trades at a trailing P/E of 47.0x, above the median of its Nasdaq-100 Technology peers of 42.1x. Its forward P/E is 23.2x, below the median of its Nasdaq-100 Technology peers of 25.7x, while its EV/EBITDA stands at 27.5x compared to the peer median of 32.8x. Over the past year, ADI returned 65.7%, outpacing the S&P 500 (SPY) return of 16.8%. Over five years, the stock gained 150.0% versus 83.0% for the S&P 500.

Analog Devices pays a quarterly dividend with a forward annual payout of $4.40, representing a dividend yield of 1.11% and a payout ratio of 38.1%. The company has paid dividends for 24 consecutive years, delivering a 5-year annualized dividend growth rate of 9.8%. The last ex-dividend date was September 1, 2026.

Wall Street sentiment includes 24 Strong Buy, 6 Buy, 4 Hold, and 0 Sell or Strong Sell ratings. The mean price target of $471.34 represents an upside of 19.2% over the last close of $395.44. For the current fiscal year ending October 31, 2026, analysts estimate revenue of $15.10B and EPS of $12.85, up 65.0%. Analog Devices beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 24, 2026.

This page is an AI-written research summary of Analog Devices, Inc. (ADI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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