Analog Devices Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Analog Devices ADI reported second-quarter fiscal 2026 non-GAAP earnings of $3.09 per share, which beat the Zacks Consensus Estimate by 6.9%. The company reported earnings of $1.85 per share in the year-ago period.Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.5%.Analog Devices’ second-quarter fiscal 2026 revenues of $3.62 billion surpassed the Zacks Consensus Estimate of $3.51 billion. The top line increased 37% from the year-ago quarter’s revenues of $2.64 billion.Analog Devices, Inc. Price, Consensus and EPS Surprise Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. QuoteAnalog Devices’ Q2 DetailsIndustrial: Revenues from this segment were $1.80 billion, representing 50% of total revenues and reflecting 56% year-over-year growth.Automotive: Revenues reached $871.6 million (or 24% of total revenue), up 2% year over year.Communications: Revenues came in at $554.7 million, accounting for 15% of total revenues and rising 79% year over year.Consumer: The segment generated $397.8 million (or 11% of revenues), marking a 23% increase compared with the same quarter last year.The adjusted gross margin expanded 360 basis points to 73%, while the adjusted operating margin was 49%, up 780 basis points year over year.ADI’s Balance Sheet and Cash FlowsAs of May 2, 2026, cash and cash equivalents were approximately $2.44 billion, down from $2.91 billion as of Jan. 31, 2026. The company also held $1 billion in short-term investments during the second quarter.Long-term debt was $7.235 billion compared with $7.24 billion at the end of the previous quarter.Analog Devices generated $872 million in operating cash flow and $734 million in free cash flow during the second quarter of fiscal 2026.In the fiscal second quarter, the company returned $1.31 billion to shareholders, comprising $536 million in dividends and $773 million in share repurchases.ADI Initiates Q3 FY26 GuidanceFor the third quarter of fiscal 2026, management expects revenues to be $3.9 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.61 billion, indicating year-over-year growth of 20.7%.The company projects a reported operating margin of approximately 39% (+/-150 bps) and an adjusted operating margin of about 49% (+/-100 bps).Reported earnings are anticipated to be $2.60 (+/-$0.15) per share, while adjusted earnings are expected to be $3.30 (+/-$0.15) per share. The consensus mark for the same is pinned at $2.96 per share.Zacks Rank & Other Stocks to ConsiderCurrently, ADI carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Amphenol APH, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Broadcom have gained 18.8% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.47 per share, up by 2 cents over the past seven days, indicating a year-over-year surge of 68.2%.Shares of Celestica have gained 14.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.Amphenol shares have declined 11.7% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks