ANALOG DEVICES INC(ADI)Stock Analysis
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Rank #110 of 2,879 stocksTOP 5%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
ADI Stock Analysis & AI Quality Score
AI stock analysis and institutional research for ANALOG DEVICES INC (ADI), a Technology sector company. 13F Pro's AI-powered ranking engine scores ADI at 76.2/100 on a 32-signal composite quality model, placing it at rank #110 of 2,879 stocks — the top 5% of the AI-ranked universe. ADI scores in the top quartile across profitability (90.1), revenue scale (88.4), free cash flow (86.4). Areas of concern include institutional flow (27.4), which score below median versus the broader universe. Shareholder dilution risk is elevated at 34.3/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), ANALOG DEVICES INC reports quarterly revenue of $3.6B, net income of $1.2B, an operating margin of 38.1%. Top institutional holders of ADI by reported 13-F value include BlackRock,, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. ADI trades on the Nasdaq exchange and files with the SEC under CIK 6281. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ADI daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ANALOG DEVICES INC directly from SEC EDGAR. ANALOG DEVICES INC's 13F Pro composite quality score has ranged between 8 and 85 since 2021, currently 76.2 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving ADI's Business? Latest 10-Q Breakdown
✓ 29/29 datapoints verifiedAI-extracted from ANALOG DEVICES INC's 10-Q filed 2026-05-20 — Q2 FY2026 (six months ended May 2, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
ADI revenue surged 34% to $6.8B in first half of FY2026, driven by Industrial (+48%) and Communications (+65%), with gross margin expanding 600bps to 66.1% and net income nearly doubling to $2.0B.
Biggest Revenue Drivers
Total revenue: $6,783,728K+34% YoY
Broad-based increase in demand with highest growth from test equipment and aerospace and defense sub-markets.
Modest growth compared to other segments.
Increased demand in data center portion related to artificial intelligence-driven infrastructure investments.
Growth in consumer end market segment.
Largest Expense Items
Increased absolute costs due to higher revenue volumes, but improved as a percentage of revenue due to better manufacturing utilization and favorable product mix.
Higher R&D employee-related variable compensation expenses, declining as percentage of revenue due to operating leverage from higher sales.
Higher SMG&A employee-related variable compensation and salary and benefit expenses, declining as percentage of revenue.
Relatively flat amortization of acquired intangible assets period-over-period.
Margins: Gross margin expanded 600bps to 66.1% in the first half, primarily driven by higher manufacturing fixed cost utilization as a result of increased customer demand and favorable product mix, offsetting modest cost of sales increases.
Watch Items from the Filing
- IRS assessment of $267M for fiscal 2018–2019 related to transfer pricing arrangements with foreign subsidiary; Company disputes and is preparing appeal, with potential material adverse effect if IRS prevails.
- Industrial segment revenue concentrated at 49% of total revenue and growing fastest (+48% YoY), creating concentration risk if Industrial demand softens.
- Distributor channel represents 56% of revenue; dependency on third-party distributors for over half of sales introduces potential supply chain and channel risk.
- Debt outstanding of $8.8B with $900M notes due December 2026 and $440M due June 2027; near-term refinancing obligations evident.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q2 2026
$3.6B
Net Income
Q2 2026
$1.2B
Free Cash Flow
Q2 2026
$734.3M
Operating Margin
Q2 2026
38.1%
ROIC
Q2 2026
3.4%
D/E Ratio
Q2 2026
0.24
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+16.9% YoYNet Income
+38.7% YoYOperating Income
+44.3% YoYEPS (Diluted)
+39.0% YoYTotal Assets
-0.5% YoYTotal Debt
+7.6% YoYOp. Cash Flow
+24.9% YoY| Metric | FY 2025 | FY 2024 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $11.02B +16.9% | $9.43B -21.5% | $12.01B +64.2% | $7.32B +30.6% | $5.60B -6.5% | $5.99B |
| Net Income | $2.27B +38.7% | $1.64B -40.5% | $2.75B +97.7% | $1.39B +13.9% | $1.22B -10.4% | $1.36B |
| Operating Income | $2.93B +44.3% | $2.03B -38.0% | $3.28B +93.8% | $1.69B +12.9% | $1.50B -12.4% | $1.71B |
| EPS (Diluted) | $4.56 +39.0% | $3.28 -37.5% | $5.25 +51.7% | $3.46 +5.5% | $3.28 | — |
| Total Assets | $47.99B -0.5% | $48.23B -4.1% | $50.30B -3.9% | $52.32B +143.7% | $21.47B +0.4% | $21.39B |
| Total Debt | $8.59B +7.6% | $7.98B +21.4% | $6.58B -9.8% | $7.29B | $0.00 -100.0% | $299.7M |
| Operating Cash Flow | $4.81B +24.9% | $3.85B -13.9% | $4.48B +63.6% | $2.74B +36.2% | $2.01B -10.9% | $2.25B |
AI Insight: ADI Financial Trends
ADI delivered 57% revenue growth and 200bps operating margin expansion over two years, with net income tripling from Q3 2024 to Q2 2026.
• Revenue surged from $2,312M (Q3 2024) to $3,623M (Q2 2026), a 57% increase reflecting strong demand momentum.
• Operating margin expanded from 21.2% (Q3 2024) to 38.1% (Q2 2026), demonstrating significant operating leverage.
• Net income grew from $392M (Q3 2024) to $1,176M (Q2 2026), a 200% gain driven by revenue and margin expansion.
• Total debt rose $577M to $8,135M while equity declined $1,404M, increasing financial leverage despite strong cash generation.
⚠ Operating cash flow declined to $872M in Q2 2026 from $1,701M in Q4 2025, a 49% sequential drop despite revenue growth.
⚠ Net debt increased materially; leverage metrics warrant monitoring as debt has risen while equity contracted.
AI Insight: ADI Ratio Trends
ADI delivered exceptional profitability acceleration in Q2 2026, with operating margin surging to 38.1% and ROIC reaching 13.2%—the strongest levels in the dataset.
• Operating margin expanded 710bp from Q1 2025 (20.3%) to Q2 2026 (38.1%), with net profit margin rising 1,130bp to 32.5%.
• ROIC climbed from 4.7% in Q1 2025 to 13.2% in Q2 2026, a 850bp increase demonstrating stronger capital deployment.
• Leverage remained stable at 0.24 D/E ratio in Q2 2026, unchanged from Q2 2025, while profitability metrics accelerated sharply.
⚠ Q2 2026 profitability metrics significantly outpace Q3 2025 (OpMargin 28.4%, ROIC 7.8%). Verify sustainability; Q1 2025 showed weakness.
⚠ NPM volatility evident: Q3 2025 dipped to 18.0% despite 28.4% OpMargin. Monitor gross margin and operating expense trends.
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Top Institutional Holders of ADI
BlackRock, Inc.
$13.7B43,112,917 shVANGUARD CAPITAL MANAGEMENT LLC
$10.1B31,739,071 shSTATE STREET CORP
$7.3B23,058,669 shVANGUARD PORTFOLIO MANAGEMENT LLC
$4.6B14,342,250 shGEODE CAPITAL MANAGEMENT, LLC
$3.9B12,170,756 shBANK OF AMERICA CORP /DE/
$3.3B10,216,699 shWELLS FARGO & COMPANY/MN
$2.7B8,372,264 shMORGAN STANLEY
$2.6B8,259,494 shFMR LLC
$2.1B6,730,687 shUBS AM, a distinct business unit of UBS ASSET MANAGEMENT AME
$2.1B6,658,024 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $13.7B | 43,112,917 |
| VANGUARD CAPITAL MANAGEMENT LLC | $10.1B | 31,739,071 |
| STATE STREET CORP | $7.3B | 23,058,669 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $4.6B | 14,342,250 |
| GEODE CAPITAL MANAGEMENT, LLC | $3.9B | 12,170,756 |
| BANK OF AMERICA CORP /DE/ | $3.3B | 10,216,699 |
| WELLS FARGO & COMPANY/MN | $2.7B | 8,372,264 |
| MORGAN STANLEY | $2.6B | 8,259,494 |
| FMR LLC | $2.1B | 6,730,687 |
| UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AME | $2.1B | 6,658,024 |
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Popular Research
Is ADI a good stock to buy?
13F Pro's AI-powered analysis of ANALOG DEVICES INC (ADI) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for ADI are available on the ADI stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own ADI?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling ADI. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of ANALOG DEVICES INC's investment landscape.