Analog Devices Posts Fiscal Q3 Revenue of $4.02 Billion, GAAP EPS of $2.74 Against Adjusted $3.45

by Henry Nakamura · August 19, 2026

Earnings Reporter, Earnings Dispatch

Analog Devices reported fiscal third quarter 2026 results on Wednesday, August 19, for the quarter ended August 1, 2026, and the company characterised the period as a record one in its own release. Revenue of $4,021.9 million compared with $2,880.3 million in the same quarter of fiscal 2025, an increase of about 40 percent.

The per-share figures diverge substantially depending on which basis is used. GAAP diluted earnings per share were $2.74 against $1.04 a year earlier. Adjusted diluted earnings per share were $3.45 against $2.05, a gap of 71 cents in the current quarter. The operating-income adjustments do not by themselves account for that gap: they total $397.0 million before tax, which on 488.8 million diluted shares works out to roughly 81 cents a share, more than the 71-cent difference. The two per-share figures are reported here each on its own basis rather than bridged one to the other.

On the operating line, GAAP operating income was $1,613.0 million, an operating margin of 40.1 percent, compared with $818.0 million and 28.4 percent a year earlier. Adjusted operating income was $2,009.9 million, a 50.0 percent adjusted operating margin, against $1,215.1 million and 42.2 percent. The $397.0 million of total adjustments to operating income comprises $397.8 million the company reports as acquisition-related expenses and $23.4 million of acquisition-related transaction costs, offset by a $24.2 million net benefit in the line the release labels special charges, net.

Gross margin followed the same pattern. The GAAP gross margin rate was 67.3 percent against 62.1 percent a year earlier, on gross profit of $2,707.5 million versus $1,789.7 million. The adjusted gross margin rate was 72.5 percent against 69.2 percent. GAAP net income was $1,340.1 million compared with $518.5 million, on 488.8 million diluted shares versus 496.7 million.

The end-market detail shows where the growth came from. Industrial revenue of $1,971.9 million represented 49 percent of the total and grew 53 percent year over year, from $1,293.0 million. Communications revenue of $654.5 million was 16 percent of the total and grew 84 percent from $354.8 million, the fastest of the four categories. Automotive contributed $998.2 million, 25 percent of revenue, up 16 percent from $857.1 million. Consumer was $397.2 million, 10 percent of revenue, up 6 percent from $375.4 million. All four figures and their growth rates are as reported in the release.

Chief executive and chair Vincent Roche said in the release: "ADI delivered a strong third quarter, exceeding the midpoint of our revenue, margin, and earnings outlook as we capitalized on broad-based demand." He added: "We continue to extend our leadership through a powerful combination of innovation, deep customer collaboration, and manufacturing agility."

Chief financial officer Richard Puccio said: "Demand continued to strengthen across our product portfolio and regions throughout the third quarter, which is reflected in our record fourth quarter outlook." He also said: "We believe our balance of disciplined execution and targeted growth investments will enable us to finish the year strongly and carry that momentum into fiscal 2027."

The fourth quarter outlook is stated on both bases, which makes the comparison unambiguous. The company said: "For the fourth quarter of fiscal 2026, we are forecasting revenue of $4.3 billion, +/- $100 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 42.6%, +/-150 bps, and adjusted operating margin of approximately 52.0%, +/-100 bps. We are planning for reported EPS to be $3.14, +/-$0.15, and adjusted EPS to be $3.86, +/-$0.15." The reported and adjusted operating margin midpoints therefore sit about 9.4 percentage points apart, a slightly narrower spread than the 9.9 points separating the two operating margins in the quarter just reported.

Investing.com, writing on the release, put the consensus for the quarter at $3.34 per share on revenue of $3.91 billion, and the consensus for the fourth quarter at $3.55 per share on revenue of $4.08 billion. That account does not name the estimate provider and does not state whether the estimates are compiled on a GAAP or an adjusted basis, so the basis of the comparison is not established by the source. The figures it compares against are the adjusted ones: the fourth quarter earnings comparison is drawn against the $3.71 to $4.01 adjusted range rather than the $2.99 to $3.29 reported range implied by the company's own guidance.

Cumulative figures for the first nine months of fiscal 2026 show revenue of $10,805.6 million against $7,943.6 million in the comparable prior-year period. GAAP diluted earnings per share for the nine months were $6.83 versus $2.97, and adjusted diluted earnings per share $8.99 versus $5.53.

Cash generation was reported on a trailing twelve-month basis. Operating cash flow was $5,545 million, equal to 40 percent of revenue, and free cash flow was $4,937 million, or 36 percent of revenue. In the third quarter the company paid $535 million of dividends and repurchased $1,157 million of stock, returning $1,692 million in total.

The board declared a quarterly cash dividend of $1.10 per outstanding share of common stock, payable on September 15, 2026 to shareholders of record at the close of business on September 1, 2026. The declining diluted share count, from 496.7 million to 488.8 million, reflects the sustained repurchase activity.

On the accompanying call, according to Investing.com's summary, management pointed to data centre demand as the dominant driver within communications; that account puts data centre at 80 percent of the communications segment, with optical and power products growing more than 100 percent year over year, and reports management expecting optical circuit switching revenue to approximately double again in fiscal 2027. The same publication reported ADI shares up nearly 2 percent in premarket trading on Wednesday morning, and noted the stock had rallied roughly 54 percent over the preceding twelve months.

For readers tracking the season, the structural point is the persistent gap between ADI's two reporting bases. What the company books as acquisition-related expenses ran to $397.8 million this quarter and $392.8 million in the year-ago quarter, and is excluded from the adjusted figures, so headlines built on the adjusted number describe a materially different business than the GAAP statements do. Both are disclosed, and the fourth quarter guidance is one of the cases where a company supplies the two side by side.