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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ADI 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% confidenceIndividual end market margins versus average have not changed in any meaningful way
80% confidenceIndustrial expected to be up mid-single digits above seasonal
80% confidenceFiscal 2025 gross margin was 69.3% and operating margin was 41.9%
80% confidenceQ1 gross margin is expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceRevenue for the year came in at just over $11 billion, up 17% from fiscal '24, with double-digit growth across all end markets
80% confidenceData center grew about 50% in fiscal 2025 and ATE business grew at 40%
80% confidenceMaxim revenue synergies clearly accelerated in FY2025 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceThe new Acoustics platform is enabling ADI to triple the value generated over legacy designs
80% confidenceMaxim revenue synergies clearly accelerated in '25, and it's in the hundreds of millions against our $1 billion target by '27
80% confidenceADI achieved earnings per share growth of more than 20% in fiscal 2025
80% confidenceFurther growth in FY26 is expected due to expanding design pipeline industry transitions to HBM4 and expected double-digit growth in hyperscaler CapEx
80% confidenceQ1 outlook reflects seventh straight quarter of above seasonal growth
80% confidenceQ1 2026 adjusted EPS expected to be $2.29 plus or minus $0.10
80% confidenceQ1 2026 revenue guidance is $3.1 billion, plus or minus $100 million, with operating margin at midpoint of 43.5%, tax rate of 12% to 14%, and adjusted EPS of $2.29, plus or minus $0.10
80% confidenceQ1 gross margin expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidenceFY26 growth expected due to expanding design pipeline, industry transitions to HBM4, and expected double-digit growth in hyperscaler CapEx
80% confidenceIndustrial is expected to be up mid-single digits above seasonal in Q1 2026
80% confidencePower management for ADI is still an opportunity with a much bigger growth story
80% confidencePower management for ADI is still an opportunity with a much bigger growth story
80% confidenceADI generated record free cash flow of more than $4 billion
80% confidenceAuto has been strongest market, and near term the market has been more resilient than predicted, but some upside may have been tariff and policy related; ADI remains cautious due to uncertainty
80% confidenceIn FY26, industrial expected up mid-single digits above seasonal, automotive down mid-single digits below seasonal, communications up 10% above seasonal, and consumer seasonally down low double digits
80% confidenceDid not reach 70% gross margin as planned because mix component wasn't as strong as expected, citing auto mix
80% confidenceQ1 2026 operating margin expected at midpoint of 43.5%
80% confidenceAll end markets increased by double digits in fiscal 2025
80% confidenceWireless communications bottomed during the year with expectations for recovery
80% confidenceGross margin for fiscal 2025 was 69.3% and operating margin was 41.9%
80% confidence