Analog Devices Inc. (NASDAQ:ADI) reported fiscal second-quarter 2026 results that came in ahead of analyst expectations, with both earnings and revenue exceeding the upper end of the company’s own guidance range.
The semiconductor company posted adjusted earnings per share of $3.09, surpassing the consensus estimate of $2.90 by $0.19. Revenue totaled $3.62 billion, ahead of the expected $3.51 billion and up 37% year over year from $2.64 billion in the same quarter last year.
Despite the stronger-than-expected results and upbeat outlook, shares slipped 0.5% following the announcement.
Growth Across Key End Markets
Analog Devices recorded year-over-year growth in all of its end markets during the quarter. Industrial revenue increased 56%, while the Communications segment surged 79%.
“ADI’s second quarter revenue and earnings were above the high end of our outlook, reflecting the combination of record demand and sharp operational discipline,” said Vincent Roche, CEO and Chair.
Third-Quarter Guidance Exceeds Wall Street Forecasts
For the third quarter of fiscal 2026, the company projected adjusted earnings per share between $3.15 and $3.45. The midpoint of $3.30 is above the analyst consensus estimate of $3.00.
Analog Devices also guided for third-quarter revenue of $3.8 billion to $4.0 billion, exceeding Wall Street expectations of $3.61 billion. The midpoint of the guidance range stands at $3.9 billion.
CFO Richard Puccio noted, “We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications. These positive demand signals are reflected in our outlook for continued strong growth in the third quarter.”
Strong Cash Flow Generation
During the quarter, Analog Devices generated $872 million in operating cash flow, representing 24% of revenue.
Over the trailing twelve months, operating cash flow totaled $5.1 billion, equal to 40% of revenue, while free cash flow reached $4.6 billion, or 36% of revenue.