Analog Devices Delivers 37% Revenue Growth and $2.40 EPS in Q2
Analog Devices posted record Q2 fiscal 2026 revenue of $3.62 billion, up 37% year-over-year, with gross margin rising 630 bps to 67.3% and diluted EPS of $2.40. The company generated $4.6 billion in free cash flow over the trailing twelve months (36% of revenue) and returned $1.3 billion to shareholders via dividends and buybacks.
1. Record Q2 Financial Results
Analog Devices reported fiscal second quarter 2026 revenue of $3.62 billion, up 37% year-over-year, gross margin of 67.3%, operating income of $1.38 billion and diluted EPS of $2.40, reflecting strength across Industrial, Automotive and Communications markets.
2. Strong Cash Flow and Returns
On a trailing twelve-month basis, ADI generated $5.1 billion in operating cash flow (40% of revenue) and $4.6 billion in free cash flow (36% of revenue), while returning $1.3 billion to shareholders through $536 million in dividends and $773 million in share repurchases.
3. Q3 Outlook and Dividend Declaration
For fiscal third quarter 2026, the company forecasts revenue of $3.9 billion plus or minus $100 million, adjusted operating margin near 49.0%, and adjusted EPS of $3.30 plus or minus $0.15, and declared a quarterly cash dividend of $1.10 per share payable June 16, 2026.