| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | 48.4x | 17.3x | Bottom tier | |
Growth | 77 | 33.6% | 7.1% | Top tier | |
Quality | 79 | 10.1% | 4.5% | Top tier | |
Safety | 85 | 1.0x | 2.6x | Top tier | |
Capital Return | 81 | 1.02% | 0.06% | Top tier | |
Momentum | 85 | 63.7% | -1.6% | Top tier | |
Sentiment | 71 | 18 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
83% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Analog Devices designs semiconductors that bridge the physical world and digital systems, generating revenue from power management, sensing, data conversion, timing, monitoring, and optical connectivity solutions. Its portfolio serves the industrial, automotive, communications, and consumer markets, with growing expansion into AI infrastructure from the power grid to the processor, including grid monitoring, battery management, rack and processor power, and precision control of optical modules.
Fiscal Q3 2026 revenue reached approximately $4.02 billion, up 11% sequentially and 40% year over year, marking the first quarter above $4 billion in the company's history. According to EDGAR data, gross profit was approximately $2.7 billion, net income was approximately $1.3 billion, and earnings per share were $2.74, while the company reported on a non-GAAP basis a gross margin of 72.5%, an operating margin of 50%, and record adjusted earnings per share of $3.45.
Industrial represented 49% of fiscal Q3 2026 revenue and grew 53% year over year, automotive represented 25% and grew 16%, communications represented 16% and grew 84%, and consumer represented 10% and grew 6%. Data centers accounted for 80% of communications revenue, with year-over-year growth exceeding 100% in both power and optical solutions, making industrial and data centers the most prominent drivers of the profit mix.
The average analyst price target is $481.25, within a wide range of $405 to $675, compared with a consensus Buy rating; the average also exceeds the 52-week range high of $445.91, reflecting expectations for continued earnings and data center growth. Conversely, the breadth of the target range compared with the 52-week range of $223.47 to $445.91 indicates significant variation in assessments of the sustainability of the AI and margin boom, and the provided information does not include a valid price-to-earnings multiple for direct comparison.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue reached $4.02 billion, up 11% sequentially and 40% year over year, exceeding the high end of the company's outlook. Industrial grew 53% year over year and communications grew 84%, while automotive rose 16% and consumer rose 6%. This mix contributed to an adjusted gross margin of 72.5%, an adjusted operating margin of 50%, and record adjusted earnings per share of $3.45.
In fiscal Q3 2026, data centers represented 80% of communications segment revenue, which in turn accounted for 16% of total revenue. The data center power and optical businesses grew by more than 100% year over year, while data centers and ATE together represent approximately 20% of ADI. Management believes the company's available data center and power market in 2030 has grown to more than twice its estimate from one year ago.
ADI provides solutions ranging from grid monitoring and battery management to in-rack power conversion and delivery to the processor. Its technologies target conversion efficiency exceeding 98%, power capacity of 20 kilowatts, and density exceeding 2.5 kilowatts per cubic inch within an 800-volt architecture. Following the closing of the Empower Semiconductor acquisition on July 7, 2026, the company gained the ability to integrate power into the processor package, potentially reducing consumption and heat by approximately 10% to 15%.
Automated analysis for informational purposes only — not investment advice.
The company expects revenue of $4.3 billion, plus or minus $100 million. The adjusted operating margin midpoint outlook is 52%, plus or minus 100 basis points, with expected gross margin of approximately 74%. It also expects adjusted earnings per share of $3.86, plus or minus $0.15, non-operating expenses of approximately $80 million, and a tax rate between 12% and 14%.
The key risk is a slowdown in AI capital spending after data centers became 80% of communications revenue and power and optical solutions recorded growth exceeding 100%. Risks also include persistent inflation, pressure from seasonal factory shutdowns on Q1 margin, and the $83 million inventory increase in fiscal Q3 2026. In addition, there are the two security incidents disclosed on July 30, 2026, as well as the geopolitical risks and higher interest rates cited by management.
Analog Devices closed the transaction on July 7, 2026, and paid $1.5 billion in cash, reducing cash and short-term investments to $2.3 billion. Empower expands ADI's portfolio of vertical power solutions by moving power management inside the processor package. The company estimates that this architecture could save approximately $30 million annually for a one-gigawatt data center by reducing computing power consumption and heat by approximately 10% to 15%.