Analog Devices, Inc. (NASDAQ: ADI) has reported its fiscal first quarter 2026 financial results, with significant year-over-year growth across all end markets. The company's revenue for the quarter was $3.16 billion, marking a 30% increase from the same period the previous year. Gross margin also saw a substantial rise, reaching $2.045 billion, up 43% from the previous year. The gross margin percentage stood at 64.7%, an increase of 570 basis points.
Operating income for the quarter was $997 million, reflecting a remarkable 103% increase from the previous year. The operating margin also saw a significant rise, reaching 31.5%, up 1,120 basis points from the same period last year. Diluted earnings per share (EPS) for the quarter were reported at $1.69, representing a substantial 117% increase from the previous year.
Adjusted results for the quarter also demonstrated notable growth, with adjusted gross margin reaching $2.25 billion, up 35% from the previous year. The adjusted gross margin percentage was reported at 71.2%, an increase of 240 basis points. Adjusted operating income saw a significant rise, reaching $1.438 billion, up 47% from the same period the previous year. The adjusted operating margin stood at 45.5%, an increase of 500 basis points. Adjusted diluted EPS for the quarter were reported at $2.46, reflecting a notable 51% increase from the previous year.
In terms of cash generation, Analog Devices reported net cash provided by operating activities of $1.369 billion, which accounted for 43% of the revenue for the quarter. Free cash flow for the trailing twelve months reached $1.259 billion, representing 40% of the revenue, or $4.56 billion on a trailing twelve-month basis, accounting for 39% of the revenue.
The company also returned $1.0 billion to shareholders via dividends and share repurchases in the first quarter. Furthermore, Analog Devices raised its quarterly dividend by 11% to $1.10, marking twenty-two consecutive years of increases.
Looking ahead, for the second quarter of fiscal 2026, Analog Devices is forecasting revenue of $3.5 billion, with reported operating margin expected to be approximately 36.4% and adjusted operating margin of approximately 47.5%. Reported EPS for the second quarter is projected to be $2.19, while adjusted EPS is expected to be $2.88.
Analog Devices' strong financial performance in the fiscal first quarter 2026 reflects its robust position and momentum, driven by relentless innovation and strong execution against cyclical and secular growth tailwinds. The market has reacted to these announcements by moving the company's shares -0.61% to a price of $300.25. If you want to know more, read the company's complete 8-K report here.
