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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Q1 gross margin expected to be flattish due to seasonal shutdowns offset by higher industrial mix
80% confidenceThere is risk in auto around tariff and some of the macro environment
80% confidenceQ1 outlook reflects seventh straight quarter of above seasonal growth
80% confidenceCommunications expected to be up 10% above seasonal
80% confidenceQ1 outlook is up slightly quarter-over-quarter, reflects seventh straight quarter of above seasonal growth
80% confidenceEarnings per share of $7.79 increased 22% versus fiscal 2024
80% confidenceData center business grew about 50% in FY2025 and ATE business grew at 40%
80% confidenceWireless communications bottomed during the year with expectations for recovery
80% confidenceADI is realizing stronger value capture as reflected in increase in average selling prices, particularly in new products where ASPs significantly exceed legacy offerings
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceADI is realizing stronger value capture as reflected in the increase in average selling prices, particularly in new products where ASPs significantly exceed those of legacy offerings
80% confidenceExpectation that in FY26, industrial and communications will lead the charge
80% confidenceCommunications is expected to be up 10% above seasonal in Q1 2026
80% confidencePower management for ADI is still an opportunity with a much bigger growth story
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% confidenceIndustrial segment will see further growth in FY26 due to expanding design pipeline, industry transitions to HBM4, and expected double-digit growth in hyperscaler CapEx
80% confidenceSome automotive upside may have been tariff and policy related, remaining cautious due to uncertainty
80% confidenceAuto has been our strongest market. Near term, the market has been more resilient than we and many have predicted
80% confidenceFiscal 2025 earnings per share of $7.79 increased 22% versus fiscal 2024
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 2026 operating margin is expected to be 43.5% at the midpoint
80% confidenceADI achieved continued growth in revenue and earnings per share in Q4 FY2025, both finishing above the midpoint of outlook
80% confidencePower management for ADI is still an opportunity with a much bigger growth story
80% confidenceADI is realizing stronger value capture as reflected in the increase in average selling prices, particularly in new products where ASPs significantly exceed those of legacy offerings
80% confidenceQ1 2026 adjusted EPS is expected to be $2.29, plus or minus $0.10
80% confidenceBroad-based growth is expected in FY26 led by industrial and communications, supported by cyclical and idiosyncratic tailwinds
80% confidenceEarnings per share of $7.79 increased 22% versus fiscal 2024
80% confidenceIndividual end market margins versus average has not changed in any meaningful way
80% confidenceDid not reach 70% gross margin as planned because mix component wasn't as strong as expected, citing auto mix
80% confidence