ADI
The chip comeback tour continues
Analog Devices just turned in a quarter that looked a lot less like “steady industrial stalwart” and a lot more like “hey, maybe this growth thing still works.” Revenue rose 40% year over year to $4.02 billion, adjusted EPS came in at $3.45, and both numbers beat Wall Street's expectations.
Margins did the heavy lifting
This wasn’t just a top-line sugar rush. Adjusted gross margin expanded to 72.5% and operating margin hit 50%, which is the kind of math that makes investors sit up straight. The company also threw off $1.46 billion in free cash flow, because apparently selling chips and printing cash can still happen in the same quarter.
The real kicker: management sounds confident
CEO Vincent Roche said demand strengthened broadly across the business, while CFO Richard Puccio called the fourth-quarter outlook a record. The company now sees Q4 adjusted EPS of $3.71 to $4.01 on revenue of $4.20 billion to $4.40 billion, both above analyst estimates at the midpoint.
- Demand improved across product lines and geographies
- AI-related opportunities are still part of the pitch
- Management says the momentum could carry into fiscal 2027
Big picture: ADI isn’t just beating numbers — it’s telling investors the recovery may be early innings, not a one-quarter cameo.