Analog Devices, Inc. (ADI)

Analog Devices reported record revenue of $4.02 billion for its fiscal third quarter of 2026 on 19 August 2026, up 40 percent from a year earlier 3.

Growth came from data center and industrial customers: Communications revenue, where data center sits, rose 84 percent and Industrial revenue rose 53 percent 2.

The company expects fourth-quarter revenue of $4.3 billion, plus or minus $100 million 3.

It completed the $1.5 billion purchase of Empower Semiconductor, a maker of power chips for AI processors, on 7 July 2026 2.

On 9 September 2026 it agreed to acquire Alif Semiconductor, a deal the company expects to close in the fourth quarter of calendar 2026 7.

One open matter is a June 2026 break-in to its systems in which certain files were taken; the company said the investigation of what was taken was still ongoing 8.

Analog Devices makes chips that turn real-world signals such as temperature, pressure, light, sound and motion into digital data, and back again 1.

It was incorporated in Massachusetts in 1965 and has its headquarters in Wilmington, Massachusetts 1.

In July 2020 it agreed to acquire rival Maxim Integrated for about $21 billion, paid in ADI shares and then the largest US deal of that year, Reuters reported 12.

Chief executive Vincent Roche told Reuters the combined engineers would design more specialized, higher-margin chips for customers such as automakers, and the companies said Maxim added strength in automotive and data center markets 12.

Revenue was $12.31 billion in fiscal 2023, fell to $9.43 billion in fiscal 2024 and recovered to $11.02 billion in fiscal 2025 1.

Fiscal 2025 revenue rose 17 percent on what the company called a broad-based increase in demand 1.

Industrial gained as customer inventory balances normalized, Automotive on connectivity chips, and Communications on data center build-outs for AI 1.

Operating income, the profit left after running costs, was $2.93 billion in fiscal 2025 against $2.03 billion in fiscal 2024 1.

The pace quickened in fiscal 2026: revenue for the first nine months rose 36 percent to $10.81 billion 2.

Gross margin, revenue minus the cost of making the chips, was 67.3 percent in the latest quarter against 62.1 percent a year earlier 2.

The company ties the gain to its factories running fuller and a richer mix of products 2.

It also sold a subsidiary in Penang, Malaysia, for a gain of $24.4 million in that quarter 2.

What it sells

The company lists more than 75,000 products, with data converters, which translate between real-world signals and digital data, as its largest and most varied family 1.

Other families are power management, amplifiers and radio-frequency chips, sensors, processors and interface chips 1.

Industrial

Industrial is the largest end market: $1.97 billion in the latest quarter, 49 percent of revenue, with every sub-market growing 2.

Test equipment and aerospace and defense grew fastest; the market also covers factory automation, healthcare equipment and energy systems 21.

Automotive, Communications and Consumer

Automotive brought $998 million, up 16 percent, from battery management, connectivity and cabin electronics 21.

Communications reached $655 million, up 84 percent, and Futurum reported that management put data center at 80 percent of it 211.

Consumer, mainly portable devices and earbuds, brought $397 million, up 6 percent 21.

Plants, people and rivals

It owns wafer fabrication in Wilmington, Massachusetts, Limerick, Ireland, and Beaverton, Oregon, and testing sites in the Philippines, Thailand and Malaysia 1.

It had about 24,500 employees on 1 November 2025, about 13,000 of them engineers 1.

Vincent Roche has been chief executive since May 2013 and chair since March 2022 4.

In 2020 Reuters named Texas Instruments among the larger rivals of the combined ADI and Maxim 12.

On 17 September 2026 it issued four series of senior notes: $500 million each due in 2029 and 2031, and $1 billion each due in 2033 and 2036 6.

Current problems

BleepingComputer reported on 30 July 2026 that an unauthorized party accessed some systems and took files, and that the company said operations were not affected 138.

The company said it did not believe the incident is reasonably likely to materially affect its business or finances 8.

The umbrella, in words

Exhibit 21 to the annual report lists the subsidiaries as of 1 November 2025, including Maxim Integrated entities, Linear Technology Holding LLC, Hittite Microwave LLC and Trinamic Motion Control GmbH & Co. KG 5.

It owns all the voting interests of Empower Semiconductor, bought on 7 July 2026 for about $1.5 billion 2.

The agreed purchase of Alif Semiconductor, a Pleasanton, California maker of low-power AI processors, carries $1.35 billion upfront and up to $200 million in contingent payments, Reuters reported on 9 September 2026 10.

The proxy lists two owners of 5 percent or more: Vanguard Group with 49,618,676 shares, 10.2 percent, and BlackRock with 38,733,607 shares, 7.9 percent, each counted on 8 January 2026 shares outstanding 4.

Vanguard's figure rests on a Schedule 13G amendment filed 6 March 2025 for ownership at 28 February 2025; BlackRock's on one filed 26 January 2024 for 31 December 2023 4.

The headquarters campus in Wilmington covers 826,000 square feet, and the Penang, Malaysia, site is held for sale 1.

For the fourth quarter of fiscal 2026 the company expects revenue of $4.3 billion, plus or minus $100 million, and an operating margin of about 42.6 percent 3.

It plans reported earnings per share of $3.14, plus or minus $0.15 3.

It also plans adjusted earnings per share, a measure that leaves out some costs, of $3.86, plus or minus $0.15 3.

Finance chief Richard Puccio said on 19 August 2026 the company believes it can finish the year strongly and carry that momentum into fiscal 2027 3.

Futurum reported that management guided fourth-quarter gross margin to about 74 percent 11.

The Alif acquisition is expected to close in the fourth quarter of calendar 2026, subject to antitrust waiting periods 7.

Futurum reported on 24 August 2026 that management expects optical circuit switching revenue to roughly double this year and grow similarly in fiscal 2027 11.

Futurum also reported that management sees its energy business, of more than $500 million, doubling by the end of the decade 11.

Savings from the Maxim integration are expected to exceed $1 billion in fiscal 2027, per the same report 11.

How it operates

Analog Devices designs, makes, tests and sells chips that connect the physical world to electronics, along with the software and subsystems around them. Its analog chips take continuous real-world signals, such as temperature, pressure, light, sound or motion, and condition, amplify or transform them; its data converters, its largest and most diverse product family, turn those signals into digital data and digital data back into signals. Around them it sells power management chips, amplifiers, radio-frequency (RF) chips, processors for devices at the edge of networks, and sensors, among them MEMS sensors (tiny mechanical structures built with chipmaking methods, such as accelerometers that sense acceleration and gyroscopes that sense rotation): more than 75,000 products in all. It adds design software, such as its CodeFusion Studio development platform and Power Studio, launched in fiscal 2025, as part of what it calls an evolution from component supplier to full-system and solutions provider. 2122232425262728

Its chips end up in equipment of almost every kind. In industry: factory robots, motion control and power supplies; automated test equipment and measuring instruments; radar, navigation and satellite systems; medical equipment from ultrasound, PET and MRI scanners to insulin pumps and glucose monitors; and utility meters, wind turbines, solar inverters and electric-vehicle chargers. In cars: battery monitoring and management, audio, connectivity and video. In communications: cellular base stations and, in data centers, power delivery and high-speed connections for AI and cloud computing. In consumer products: phones, tablets, wearables, earbuds and hearing devices. 293031323334353637

Most of it is sold through distributors, companies that buy chips for resale: they brought in 56% of fiscal 2025 revenue, against 58% the year before. Direct customers, mainly original equipment manufacturers (OEMs), took 43%, and the US government, its prime contractors and some commercial customers about 1%. Two distributors each took more than a tenth of revenue: one 24%, the same share as in fiscal 2024, and another 13%; no other customer passed a tenth. The company has sales offices, representatives or distributors in about 50 countries. It typically signs no long-term sales contracts, and most orders can be canceled within a reasonable notice period without significant penalty. 38394041424344

By the location of the distributor or equipment maker that bought the chips, the United States brought in 3.2 billion dollars, 29.4% of fiscal 2025 revenue, up 14.0%; China 2.9 billion, 25.9%, up 34.3%; Europe, mainly Germany, the Netherlands, France and Israel, 2.3 billion, 20.7%; the rest of Asia, mainly Taiwan, South Korea, Malaysia and Singapore, 13.5%; and Japan 9.0%, the only region that shrank, down 8.8%. The filing notes that this can differ from where the end customers are, particularly when a contract manufacturer buys through distributors. 454647

Unlike fabless chip designers, which hire others to make their chips, Analog Devices runs its own wafer fabs, in Wilmington, Massachusetts; Camas, Washington; Beaverton, Oregon; and Limerick, Ireland, on manufacturing processes tailored to analog and mixed-signal chips. Even so, it buys more than half of its wafers each year from outside foundries such as TSMC. It sorts and tests wafers at its own sites in the Philippines and Thailand and makes extensive use of subcontractors for assembly and testing. Its assembly and test plant in Penang, Malaysia was classified as held for sale in the fourth quarter of fiscal 2025, and the subsidiary that held it was sold in the third quarter of fiscal 2026. 484950515253

The specifics

Analog Devices was incorporated in Massachusetts in 1965 and is still headquartered near Boston, in Wilmington. Buying businesses is part of its strategy. The acquisition the filing still reports on is Maxim Integrated Products: its head of technology and manufacturing, Vivek Jain, took over the company's global operations after the deal, in August 2021, and integrating Maxim and consolidating its manufacturing and office footprint had cost 591.6 million dollars in net special charges by November 1, 2025. A separate reorganization begun in fiscal 2023, with voluntary and involuntary job cuts, cost another 155.9 million. On July 7, 2026 it completed the purchase of Empower Semiconductor, a provider of integrated voltage regulators and power management products, for about 1.5 billion dollars; the company counts a stronger power technology portfolio among the benefits it expects. 5455656575859

In its own account, its edge is six decades of analog know-how: it calls itself one of the world's largest suppliers of high-performance analog chips, with several thousand analog products, many sold to several hundred end customers and kept in production for a long time. At November 1, 2025 it held about 4,780 US patents and about 500 published pending US applications, and it sometimes keeps a significant invention as a trade secret instead of patenting it. It believes its competitive position rests largely on its people's system and application knowledge and skills, with patents giving some advantage and protection. Research and development cost 1.8 billion dollars in fiscal 2025, 16% of revenue. 60616263646566

The filing names no competitor. It describes rivals with the resources to match its products, emerging specialists, and companies abroad backed by well-funded government efforts to build home-grown chip industries, and it warns that government incentives such as the US CHIPS Act may not be available to it on acceptable terms. Trade rules cut deeper: export restrictions limit its sales to certain Chinese companies and to those that deal with them, have already affected its revenue in China and elsewhere, and may lead customers to stockpile its chips or switch to suppliers the rules do not reach. It also flags the tariffs announced in 2025 and a Commerce Department investigation into imported semiconductors opened in April 2025. Most of its profit is earned in Ireland: pretax income was primarily generated there, at a 12.5% tax rate. 6768697071727374

The newest quarterly report changes one risk factor, to add a cyber incident in June 2026 in which files were taken from some of its systems. Its operations were not interrupted; the company said that, on what it knew, it did not believe the incident reasonably likely to affect its business materially, while its investigation of what was taken continued. 757677

What drives growth, line by line

Revenue rose 16.9% in fiscal 2025 to 11.0 billion dollars, recovering part of the 23.4% fall of fiscal 2024 from 12.3 billion in fiscal 2023. The filing credits a broad-based increase in demand, partly offset by the extra week of operations fiscal 2024 had. Gross margin widened to 61.5% from 57.1%, mainly because its factories ran fuller on higher demand and the amortization of acquired intangible assets fell, and net income rose 39% to 2.3 billion dollars. 6578798081

Industrial. The largest line: 4.9 billion dollars, 44.7% of fiscal 2025 revenue, up 14.9%. Beyond stronger demand, the filing credits customers' inventories returning to normal and growth in test equipment and in aerospace and defense. Industrial made up 53% of revenue in fiscal 2023 and 46% in fiscal 2024. 458283

Automotive. 3.3 billion dollars, 29.7% of revenue, up 15.5%, driven mainly by connectivity products, the filing says. Automotive's share of revenue has risen from 24% in fiscal 2023 to 30%, the second-largest line after industrial. 458483

Consumer. 1.4 billion dollars, 13.0% of revenue, up 18.8%, mainly on portable consumer products, the smartphones, tablets, handheld games and wearables its chips go into. 458537

Communications. 1.4 billion dollars, 12.5% of revenue and the fastest-growing line, up 26.2%. The filing credits the wireline sub-market, meaning wired network equipment, as data-center infrastructure expanded to support AI applications. 4585

The newest quarterly report shows growth speeding up: revenue for the quarter ended August 1, 2026 rose 40% on the year, and 36% over nine months, on broad-based demand. Communications grew fastest, up 84% in the quarter, led by the data-center sub-market on AI-related infrastructure spending. Industrial rose 53%, with every sub-market growing and test equipment and aerospace and defense growing most, and made up 49% of the quarter's revenue; automotive rose 16% and consumer 6%. Gross margin reached 67.3%, against 62.1% a year earlier, on fuller factories and a more favorable mix of products. 8687888990

What comes next, in the company's own words: it expected capital spending in fiscal 2026 of about 4% to 6% of that year's revenue, after 533.6 million dollars in fiscal 2025 and 1.3 billion in fiscal 2023; it expects to continue developing new technologies and processes for new products, whose success it views as critical to future growth; and it is building software and AI tools around its chips in what it calls an evolution from component supplier to full-system and solutions provider. 91659227

The read's section on the people who run it is on the People tab.

What the desk infers Inferred

1. Inferred

   A large part of the fall in fiscal 2024 and of the recovery since came from customers and distributors running down their stocks of Analog Devices chips and then rebuilding them, on top of changes in end demand; the industrial market, which leans heavily on distributors, carried the swing.

   Because

   • Revenue fell 23.4% in fiscal 2024, then rose 16.9% in fiscal 2025. 65
   • Industrial's share of revenue dropped from 53% in fiscal 2023 to 46% in fiscal 2024. 83
   • The filing credits the fiscal 2025 industrial increase primarily to customer inventory balances normalizing. 82
   • The distributor channel's share moves with industrial's: the annual report ties its fall to industrial's smaller share, and the newest quarterly report ties its rise to industrial's larger one. 9394
   • Distributors typically keep an inventory of its products, and in weak markets customers rely on the shorter lead times suppliers offer. 9596
   Confidence 65 of 100Wrong if A filing showing that distributor and customer inventories of its chips held steady through fiscal 2024 and 2025, so that its shipments tracked end demand throughout.
2. Inferred

   The company's biggest single exposure is a distributor, not an end customer: the same distributor has taken about a quarter of revenue three years running, on open credit, so its health and its stocking decisions weigh on results more than any one buyer of the chips.

   Because

   • The largest distributor took 24%, 24% and 25% of revenue in the last three fiscal years, and a second took 13% in fiscal 2025. 40
   • No other customer took more than a tenth of revenue in any of those years. 41
   • It generally does not require letters of credit from its distributors, including the largest, and is not protected against their default. 97
   • Distributors can receive price adjustment credits and return slow-moving products for credit. 98
   Confidence 80 of 100Wrong if A filing naming an end customer with a larger share of revenue than the largest distributor, or that distributor's share falling below a tenth of revenue.
3. Inferred

   China's jump to about a quarter of fiscal 2025 revenue likely overstates demand from Chinese end products: part of it is probably contract manufacturers in China buying for companies elsewhere, and part may be customers building stocks ahead of export restrictions and tariffs.

   Because

   • China was the fastest-growing large region in fiscal 2025, up 34.3%, against 14.0% for the United States and 8.3% for Europe. 45
   • The filing books revenue where the buying distributor or equipment maker sits, which may differ from where the end customers are, particularly when a contract manufacturer buys through distributors. 46
   • It says export restrictions may lead customers to amass large inventories of its products. 71
   • It says the tariffs of 2025 have led customers to advance, delay, reduce or cancel orders and shift buying patterns. 7299
   Confidence 50 of 100Wrong if A filing that reports revenue by the end customer's location with China's share as high as the purchaser-based figure, or China keeping its share through a year with no new trade restrictions.
4. Inferred

   With the Penang plant sold, the company's own chip back end is now wafer probing and testing in the Philippines and Thailand, and putting its chips into packages rests largely with subcontractors; Thailand is where it added equipment in fiscal 2025.

   Because

   • The annual report describes Penang as its assembly, wafer sort and testing facility and its Philippine and Thai sites as wafer sort and test facilities, and says subcontractors already did much of its assembly and testing. 51
   • Its table of main sites lists wafer probe and testing at Cavite in the Philippines and Chonburi in Thailand, assembly at Penang, and final assembly of certain modules and subsystems at Chelmsford, Massachusetts. 100101
   • It classified the Penang facility as held for sale in the fourth quarter of fiscal 2025 and sold the Penang subsidiary in the third quarter of fiscal 2026. 5253
   • Its plant and equipment in Thailand grew over fiscal 2025 while the Philippines' shrank. 102
   • Its repositioning program set out to consolidate its global footprint, manufacturing included. 56
   Confidence 60 of 100Wrong if A filing naming a company-run chip assembly plant other than Penang, or showing Penang's assembly work moved to another of its own sites.