The strong beat and raised guidance signal accelerating demand across all major end markets, particularly Communications (+84% YoY) and Industrial (+53% YoY). Traders should watch for sustained margin expansion as adjusted operating margin hit 50% for the first time. The Q4 guidance midpoint of $4.3B in revenue well above $3.9B prior outlook suggests backlog and bookings momentum continue into early fiscal 2027.
Price Chart
Executive Summary
ADI reported fiscal Q3 2026 revenue of $4.02B (up 40% YoY) and adjusted EPS of $3.45, beating the consensus estimate of $3.34 by 3.3%. The company guided Q4 revenue to $4.3B (+- $100M) and adjusted EPS to $3.86, both above Street expectations, driven by broad-based demand strength in Industrial, Automotive, and Communications end markets.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $4.022B, +40% YoY, above guidance midpoint of $3.9B
- Adjusted EPS $3.45 vs consensus $3.34, +3.3% beat
- Q4 FY2026 guidance: revenue $4.3B (+- $100M), adjusted EPS $3.86 (+- $0.15)
- GAAP gross margin 67.3%, up 520 bps YoY; adjusted gross margin 72.5%
- Operating cash flow TTM $5.5B, free cash flow TTM $4.9B, both 40%/36% of revenue
- Returned $1.7B to shareholders in Q3 via dividends and buybacks
- Communications end market revenue surged 84% YoY; Industrial up 53%; Auto up 16%
- Industrial now 49% of revenue, Communications 16%, Auto 25%, Consumer 10%
Financial Impact
Record quarterly revenue of $4.02B with 40% YoY growth; Q4 guidance midpoint $4.3B implies ~6.9% sequential growth and ~49% YoY
Risk Factors
- Tariff and trade restriction uncertainty flagged in forward-looking statements
- Ongoing acquisition integration costs (Empower Semiconductor) could weigh on GAAP earnings
- Elevated inventory levels ($1.93B, +17% YTD) may signal normalization ahead if demand decelerates
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000006281-26-000072 |
| Document: adi-20260819.htm | 0000006281-26-000072 |
| Document: 0000006281-26-000072-index-headers.html | 0000006281-26-000072 |
| Document: 0000006281-26-000072-index.html | 0000006281-26-000072 |
| Document: 0000006281-26-000072.txt | 0000006281-26-000072 |
| 8-K Data (Synthetic) | 0000006281-26-000072 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | Insider Cluster | $361.25 $362.65 | ▲ +0.39% | ▲ +0.89% | $417.15 (+15.47%) |
Sep 9, 2026 22d ago | Insider Cluster | $361.25 $362.65 | ▲ +0.39% | ▲ +0.89% | $417.15 (+15.47%) |
Sep 9, 2026 23d ago | 8-K | $365.07 $362.04 | ▼ −0.83% | ▼ −0.17% | $417.15 (+14.27%) |
Sep 2, 2026 4w ago | Insider Cluster | $355.42 $361.25 | ▲ +1.64% | ▲ +2.60% | $417.15 (+17.37%) |
Aug 28, 2026 5w ago | Insider Cluster | $361.78 $362.25 | ▲ +0.13% | ▲ +0.02% | $417.15 (+15.30%) |
Aug 19, 2026 6w ago | 8-K | $373.26 $371.80 | ▼ −0.39% | ▼ −0.00% | $417.15 (+11.76%) |
Aug 9, 2026 7w ago | Institutional Cluster | $383.93 $390.28 | ▲ +1.66% | ▲ +1.70% | $417.15 (+8.65%) |
Aug 6, 2026 8w ago | Insider Cluster | $375.81 $380.89 | ▲ +1.35% | ▲ +0.14% | $417.15 (+11.00%) |
Jul 23, 2026 10w ago | Press Release | $371.86 $366.67 | ▲ +1.40% | ▲ +1.77% | $417.15 (−12.18%) |
Jul 14, 2026 11w ago | Insider Cluster | $392.75 $372.46 | ▼ −5.17% | ▼ −3.87% | $417.15 (+6.21%) |
US Market Status
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