Analog Devices Q3 Revenue Jumps 40% to $4.02B, EPS $2.74
ADI sits 72% above its 52-week low of $223.47.
Summary
Analog Devices posted record Q3 results with revenue up 40% to $4.02B and EPS of $2.74, while disclosing a $267M IRS tax dispute.
Key Events · Earnings and Guidance · ADI
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Record Q3 Revenue and EPS
Revenue rose 40% YoY to $4.02B; diluted EPS of $2.74 vs $1.04 a year ago. Gross margin expanded 520 bps to 67.3%.
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Broad-Based Demand
Industrial revenue up 53%, Communications up 84%, Automotive up 16%, Consumer up 6% YoY. Data center sub-market drove Communications growth.
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IRS Transfer Pricing Assessment
Company received a $267.0M IRS assessment for fiscal 2018-2019 related to transfer pricing. ADI disputes the assessment and has not recorded a liability; an adverse outcome could materially affect future earnings.
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Empower Semiconductor Acquisition
Completed July 7, 2026 for ~$1.5B. Preliminary allocation: $1.0B goodwill, $0.6B intangibles, $0.1B deferred tax liabilities. Revenue contribution immaterial in Q3.
Analysis · ADI · Manufacturing
A record fiscal Q3 saw revenue climb 40% year-over-year to $4.02 billion and diluted EPS reach $2.74, powered by broad-based demand across all end markets. Gross margin expanded 520 basis points to 67.3% on higher manufacturing utilization and favorable product mix. The company also disclosed a $267 million IRS transfer pricing assessment for fiscal 2018-2019 that it intends to vigorously contest — a potential future earnings risk not highlighted in the earlier 8-K. The 10-Q adds full financial statements, segment detail, and the Empower Semiconductor acquisition allocation, giving investors a complete picture of the quarter's strength and the tax overhang.
At the time of this filing, ADI was trading at $384.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $183.5B. The 52-week trading range was $223.47 to $445.91. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.