Analog Devices forecasts $3.1B Q1 revenue as industrial and communications lead FY26 growth
View original at seekingalpha.comAnalog Devices forecasts $3.1B Q1 revenue as industrial and communications lead FY26 growth Earnings Call Insights: Analog Devices (ADI) Q4 2025 MANAGEMENT VIEW * CEO Vincent Roche reported "continued growth in revenue and earnings per share, both of which finished above the midpoint of our outlook," noting that all en…
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Expectation is that in FY26, industrial and communications will lead the charge
80% confidenceBroad-based growth expected in FY2026 led by industrial and communications, supported by cyclical and idiosyncratic tailwinds
80% confidenceADI did not reach 70% gross margin as planned because mix component wasn't as strong as expected, citing auto mix
80% confidenceContinued growth in revenue and earnings per share, both of which finished above the midpoint of outlook
80% confidenceQ1 2026 revenue expected to be $3.1 billion plus or minus $100 million
80% confidenceADI continues to see some risk in automotive around tariff and macro environment
80% confidenceAutomotive is expected to be down mid-single digits below seasonal in Q1 2026
80% confidenceLead times are -- most of our products have lead times sub-13 weeks... I don't think we've necessarily seen an improvement in visibility over the last 2 years
80% confidenceAnalog Devices achieved continued growth in revenue and earnings per share in Q4 2025, both finishing above the midpoint of outlook
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against the $1 billion target by 2027
80% confidenceAerospace and defense is expected to see double-digit growth in FY26 and the business has the capacity by the end of the decade to more than double
80% confidenceRevenue for fiscal 2025 came in at just over $11 billion, up 17% from fiscal 2024, with double-digit growth across all end markets
80% confidenceAutomotive has been the strongest market but near term the market has been more resilient than predicted, though some upside may have been tariff and policy related
80% confidenceLead times for most products are sub-13 weeks and visibility has not necessarily improved over the last 2 years
80% confidenceQ1 outlook reflects seventh straight quarter of above seasonal growth
80% confidenceQ1 2026 revenue expected to be $3.1 billion, plus or minus $100 million, with operating margin at the midpoint of 43.5%
80% confidenceBroad-based growth in '26 led by industrial and communications, supported by cyclical and idiosyncratic tailwinds
80% confidenceQ1 gross margin expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidenceQ1 outlook reflects seventh straight quarter of above seasonal growth
80% confidenceLead times are sub-13 weeks for most products and visibility has not necessarily improved over the last 2 years
80% confidenceADI generated record free cash flow of more than $4 billion in fiscal 2025
80% confidenceAll end markets increased by double digits in fiscal 2025
80% confidenceNew Acoustics platform is enabling ADI to triple the value generated over legacy designs
80% confidenceEarnings per share of $7.79 increased 22% versus fiscal 2024
80% confidenceData center business grew about 50% in FY25 and the ATE business grew at 40%
80% confidenceData center business grew about 50% in FY2025 and ATE business grew at 40%
80% confidenceAnalog Devices achieved continued growth in revenue and earnings per share, both of which finished above the midpoint of outlook
80% confidenceFiscal 2025 gross margin was 69.3% and operating margin was 41.9%
80% confidenceADI is realizing stronger value capture as reflected in increase in average selling prices, particularly in new products where ASPs significantly exceed legacy offerings
80% confidenceWe continue to see some risk there around tariff and some of the macro environment
80% confidence