Analog Devices reported record fiscal third quarter 2026 revenue of $4.02 billion on August 19, up 40% year-over-year and 11% sequentially, as data-center and industrial demand for its analog, mixed-signal and power-management silicon accelerated.
Data Center And Industrial Lead A Broad Beat
Chief Executive Vincent Roche called the quarter the strongest in the company's history, with year-over-year growth led by the Data Center and Industrial segments. GAAP gross margin came in at 67.3% and operating margin at 40.1%, while adjusted gross and operating margins reached 72.5% and 50.0% respectively. GAAP diluted EPS rose 163% to $2.74, and adjusted diluted EPS climbed 68% to $3.45 — a sign that Analog Devices' shift toward high-density power delivery for AI compute racks is dropping through to the bottom line even as capacity investments ramp.
Cash Machine Feeds Shareholder Returns
Operating cash flow reached $5.5 billion on a trailing twelve-month basis and free cash flow was $4.9 billion, representing 40% and 36% of revenue. The company returned $1.7 billion to shareholders in the quarter through dividends and buybacks. For fiscal fourth quarter 2026, Analog Devices guided revenue of $4.3 billion plus or minus $0.1 billion, reported EPS of $3.14 plus or minus $0.15 and adjusted EPS of $3.86 plus or minus $0.15 — an implicit call that the AI data-center capex cycle still has room to run.
Fitting Into A Wider AI Silicon Boom
The blow-out lands alongside a wave of AI-driven semiconductor upside, including Samsung Foundry raising 4nm and 5nm prices on tight AI capacity, Cerebras unveiling the CS-4 wafer-scale inference system, and Velaura AI raising $110M for ultra-low-power AI chips. Analog Devices' M2026-1 $1.5B acquisition of Empower Semiconductor earlier this year set up today's data-center leadership.
Reporting based on coverage from Analog Devices, StockTitan and MarketBeat.