Analog Devices (ADI)
Information Technology · $187B market cap · SEC CIK 0000006281
fundamentals score out of 100
Next reports on Nov 23, 2026, after the close, with analysts expecting $3.92 in earnings per share.
The case for ADI
- Revenue up 33.6% on the year.
- Generated $4.3B of free cash flow in FY2025, 39% of revenue.
- 30% of revenue drops through to net profit.
- Earnings per share up 114.4%.
- Has compounded revenue at 14.5% a year over five years.
- Gross margin of 66% absorbs cost shocks.
The case against
- Pricey at 45.2× earnings, against a long-run market average nearer 20×.
- Priced at 13.5× sales, which leaves no room for a stumble.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 38 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 83 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 64 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 61 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 45.2× |
|---|---|
| Price / book | 5.23× |
| Price / sales | 13.5× |
| Revenue growth (YoY) | +33.6% |
| EPS growth (YoY) | +114.4% |
| Gross margin | 66% |
| Operating margin | 36% |
| Net margin | 30% |
| Return on equity | 12% |
| Debt / equity | 0.27× |
| Current ratio | 1.25 |
| Dividend yield | 1.88% |
| Beta | 1.29 |
| 52-week range | $223.47 – $445.91 |
| Position in that range | 75% of the way up |
| 3-month return | -11.8% |
| 1-year return | +56.1% |
Five years of financials, as filed
Pulled from Analog Devices's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $11.0B | $9.4B | $12.3B | $12.0B | $7.3B |
| Gross profit | $6.8B | $5.4B | $7.9B | $7.5B | $4.5B |
| Operating income | $2.9B | $2.0B | $3.8B | $3.3B | $1.7B |
| Net income | $2.3B | $1.6B | $3.3B | $2.7B | $1.4B |
| Operating cash flow | $4.8B | $3.9B | $4.8B | $4.5B | $2.7B |
| Capital expenditure | $534M | $730M | $1.3B | $699M | $344M |
| Total assets | $48.0B | $48.0B | $48.4B | $50.2B | $51.2B |
| Shareholder equity | $33.8B | $35.1B | $35.5B | $36.5B | $37.4B |
| Cash | $2.9B | $2.3B | $1.3B | $1.7B | $1.8B |
| Long-term debt | $7.2B | $6.6B | $5.9B | $6.6B | $6.3B |
| Free cash flow | $4.3B | $3.1B | $3.6B | $3.8B | $2.4B |
| Gross margin | 61.5% | 57.1% | 64.0% | 62.7% | 61.8% |
| Operating margin | 26.6% | 21.6% | 31.1% | 27.3% | 23.1% |
| Net margin | 20.6% | 17.3% | 26.9% | 22.9% | 19.0% |
| Diluted shares | 497M | 499M | 506M | 523M | 401M |
Share count is up 23.8% over 4 years. Your slice has been diluted.
What Analog Devices says it does
Company Overview, Strategy and Mission Analog Devices, Inc. (we, Analog Devices or the Company) is a global semiconductor leader dedicated to solving our customers’ most complex engineering challenges. We deliver innovations that connect technology to human breakthroughs and play a critical role at the intersection of the physical and digital worlds by providing the building blocks to sense, measure, interpret, connect and power. We design, manufacture, test and market a broad portfolio of solutions, including integrated circuits (ICs), software and subsystems that leverage high-performance analog, mixed-signal and digital signal processing technologies. Our comprehensive product portfolio, deep domain expertise and advanced manufacturing capabilities extend across high-performance precision and high-speed mixed-signal, power management and processing technologies – including data converters, amplifiers, power management, radio…
Risk factors ADI lists in its 10-K
- Risks Related to our Business, Operations, Industry and Partners
- Global political and economic uncertainty and adverse conditions related to our international operations could materially and adversely affect our business, financial condition and results of operations
- Recently announced and future tariffs and other trade restrictions could materially and adversely affect our business, financial condition and results of operations
- The markets for semiconductor products are cyclical, and increased production may lead to overcapacity and lower prices, and conversely, we may not be able to satisfy unexpected demand for our products
- Our operating results are dependent on the performance of independent distributors
- A prolonged disruption of our or our third parties’ manufacturing operations could have a material adverse effect on our business, financial condition and results of operations
- Our industry faces challenges associated with products diverted from authorized distribution channels, which could result in reputational harm and have a material adverse effect on our business and results of operations
- Our future success depends upon our ability to execute our business strategy, continue to innovate, improve our existing products, design, develop, produce and market new products and identify and enter new markets
- We may not be able to compete successfully in markets within the semiconductor industry in the future
- Our future revenue, gross margins, operating results, net income and earnings per share are difficult to predict and may materially fluctuate
- If we are unable to recruit or retain our key personnel, our ability to execute our business strategy will be adversely affected
- Our customers typically do not make long-term product purchase commitments, and incorrect forecasts or reductions, cancellations or delays in orders for our products could adversely affect our operating results
- Risks Related to Acquisitions and Strategic Transactions
- Risks Related to Cyber, Artificial Intelligence, Intellectual Property, Legal and Regulatory