Analog Devices Inc (ADI) Q2 2026 Earnings Call Highlights: Record Revenue and Strategic ...
View original at finance.yahoo.com“Cash and Short-term Investments: $3.4 billion.”
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
Communications revenue represented 15% of total revenue, up 22% sequentially and 79% year over year.
60% confidenceThird-quarter 2026 revenue is expected to be $3.9 billion, plus or minus $100 million.
60% confidenceAutomotive revenue represented 24% of total revenue, up 8% sequentially and 2% year over year.
60% confidenceThe acquisition of Empower Semiconductor is not expected to contribute materially to revenue in the near term.
60% confidenceInventory increased by $81 million sequentially, with days of inventory at 168.
60% confidenceThere are concerns about potential choke points in the semiconductor supply chain, particularly in memory, which could affect consumer customers.
60% confidenceThere is a potential risk of increased competition in pricing as some competitors may use the inflationary environment to take shares.
60% confidenceOperating margin reached 49%, up 350 basis points sequentially and 780 basis points year over year.
60% confidenceCash and short-term investments totaled $3.4 billion as of Q2 2026.
60% confidenceThird-quarter 2026 operating margin is expected to be 49%, plus or minus 100 basis points.
60% confidenceThird-quarter 2026 EPS is expected to be $3.30, plus or minus $0.15.
60% confidenceA 50 basis point decline in gross margin is anticipated for the third quarter due to the absence of a one-time benefit from repricing the channel.
60% confidenceADI is seeing strong demand in AI-driven infrastructure investments, particularly in data center and ATE businesses.
60% confidenceIndustrial revenue represented 50% of total revenue, up 20% sequentially and 56% year over year.
60% confidenceRevenue for Q2 2026 was $3.62 billion, up 15% sequentially and 37% year over year, representing a record quarter and exceeding the high end of guidance.
60% confidenceConsumer revenue is expected to decline single digits sequentially in the third quarter due to inflationary pressures and consumer sentiment.
60% confidenceConsumer revenue represented 11% of total revenue, flat sequentially and up 23% year over year.
60% confidenceGross margin improved to 73%, up 180 basis points sequentially and 360 basis points year over year, driven by favorable mix, higher utilization, and pricing.
60% confidenceFree cash flow over the trailing 12 months was $4.6 billion, representing 36% of revenue.
60% confidenceEPS for Q2 2026 was $3.09, up 26% sequentially and 67% year over year.
60% confidence