Analog Devices forecasts $3.1B Q1 revenue as industrial and communications lead FY26 growth
View original at seekingalpha.comAnalog Devices forecasts $3.1B Q1 revenue as industrial and communications lead FY26 growth Earnings Call Insights: Analog Devices (ADI) Q4 2025 MANAGEMENT VIEW * CEO Vincent Roche reported "continued growth in revenue and earnings per share, both of which finished above the midpoint of our outlook," noting that all en…
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Record free cash flow of more than $4 billion was generated in fiscal 2025
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceEarnings per share growth of more than 20% in fiscal 2025 was achieved
80% confidenceWe didn't get to the 70% gross margin as planned as the mix component wasn't as strong as we were expecting, citing auto mix
80% confidenceAuto has been ADI's strongest market and near term the market has been more resilient than predicted
80% confidenceQ1 2026 revenue expected to be $3.1 billion, plus or minus $100 million, with operating margin at the midpoint of 43.5%
80% confidenceQ1 gross margin expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidenceThere is risk in auto around tariff and some of the macro environment
80% confidenceEarnings per share of $7.79 increased 22% versus fiscal 2024
80% confidenceAerospace and defense expected to grow double-digit in FY26 and business has capacity by end of decade to more than double
80% confidenceFiscal 2025 gross margin was 69.3% and operating margin was 41.9%
80% confidenceLead times for most products are sub-13 weeks and visibility has not improved over the last 2 years
80% confidenceConsumer is expected to be seasonally down low double digits in Q1 2026
80% confidenceADI is realizing stronger value capture as reflected in increase in average selling prices, particularly in new products where ASPs significantly exceed legacy offerings
80% confidenceWe continue to see some risk there around tariff and some of the macro environment
80% confidenceQ1 gross margin is expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceThe new Acoustics platform is enabling ADI to triple the value generated over legacy designs
80% confidenceExpectation that in FY26, industrial and communications will lead the charge
80% confidenceADI achieved earnings per share growth of more than 20% in fiscal 2025
80% confidenceGross margin of 69.3% for the year and operating margin of 41.9%
80% confidenceQ1 gross margin expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidencePower management for ADI is still an opportunity with a much bigger growth story
80% confidenceADI achieved earnings per share growth of more than 20% in fiscal 2025
80% confidenceFurther growth in FY26 is expected due to expanding design pipeline industry transitions to HBM4 and expected double-digit growth in hyperscaler CapEx
80% confidenceQ1 2026 adjusted EPS expected to be $2.29 plus or minus $0.10
80% confidenceSome automotive upside may have been tariff and policy related, remaining cautious due to uncertainty
80% confidenceConsumer expected to be seasonally down low double digits
80% confidenceIndividual end market margins versus average has not changed in any meaningful way
80% confidenceAuto has been our strongest market. Near term, the market has been more resilient than we and many have predicted
80% confidence