Analog Devices Reports 40% Revenue Growth to $4.02 Billion in Latest Quarter

Analog Devices, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $4.02 billion for the three months ended August 1, 2026, a 40% increase from $2.88 billion in the same period last year. For the nine-month period, revenue totaled $10.81 billion, up 36% from $7.94 billion. The company’s net income also saw a substantial rise, climbing to $1.34 billion in the third quarter, compared to $518.5 million a year earlier, marking a 158% increase. This growth translated to a diluted earnings per share of $2.74, up from $1.04 in the prior year.

The company attributed its strong performance to broad-based demand across various end markets, particularly in industrial applications, which accounted for 49% of total revenue. The automotive sector also contributed significantly, with a 25% share and a 16% year-over-year growth. Notably, the communications segment experienced an 84% increase, driven by investments in artificial intelligence-related infrastructure. The gross margin improved to 67.3%, up from 62.1% a year ago, reflecting higher manufacturing efficiency and a favorable product mix.

In terms of strategic developments, Analog Devices completed the acquisition of Empower Semiconductor, Inc. for approximately $1.5 billion on July 7, 2026. This acquisition is expected to enhance the company’s power technology portfolio, although the revenue and earnings from Empower since the acquisition have been immaterial. The company also reported a gain of $24.2 million from the sale of a subsidiary in Penang, Malaysia, which contributed to a decrease in special charges.

Operationally, Analog Devices reported an increase in accounts receivable, which rose by 66% to $2.39 billion, reflecting higher sales levels. Inventory levels also increased by 17% to $1.93 billion as the company built stock to meet growing demand. The company’s employee headcount remained stable, and it continues to invest in research and development, with R&D expenses increasing by 17% in the latest quarter. Looking ahead, Analog Devices maintains a positive outlook, supported by strong cash flows and a robust liquidity position, with $2.3 billion in cash and short-term investments as of August 1, 2026. The company expects to continue its dividend payments and share repurchase program, with $7.4 billion remaining available for stock buybacks.