ADI Q2 earnings — Revenue +37% YoY · EPS +111% YoY · EBIT -100% YoY · 📈 outlook Q3 FY26: rev $3.8-$4.0B, EPS $2.45-$2.75

The Print

Analog Devices, Inc. (ADI) reported fiscal second quarter 2026 revenue of $3.62 billion, a 37.2% year-over-year (YoY) increase from $2.64 billion in Q2 FY25, per SEC 8-K Item 2.02 filed on 2026-05-20 at 07:01:45. The company also posted diluted EPS of $2.40, up 110.5% YoY from $1.14, but reported $0 in EBIT, a 100% YoY decline from $701 million in the year-ago quarter. Full results are available in Exhibit 99.1 of the 8-K filing linked at https://www.sec.gov/Archives/edgar/data/6281/000000628126000050/adi2q26exhibit991earnings.htm.

Operating Leverage

While top-line growth accelerated 37.2% YoY, ADI saw full operating margin compression to 0% in Q2 FY26, down from an estimated 26.6% operating margin in Q2 FY25 (calculated as $701 million EBIT divided by $2.64 billion revenue). The $701 million YoY drop in EBIT directly outpaces the $980 million increase in quarterly revenue, marking significant margin contraction rather than expansion. No gross margin details were provided in the initial 8-K earnings release.

Forward Outlook

ADI issued Q3 FY26 guidance in the same 8-K filing, targeting revenue between $3.80 billion and $4.00 billion, with a midpoint of $3.90 billion. This represents a 7.7% sequential increase from Q2 FY26’s $3.62 billion top line. The consensus revenue estimate for Q3 FY26, per prior analyst estimates tracked in ADI’s earnings history, was $3.51 billion, meaning the guided range sits above street expectations. On a YoY basis, the midpoint guidance implies 35.4% growth vs. Q3 FY25’s reported $2.88 billion revenue. EPS guidance is set between $2.45 and $2.75, with a midpoint of $2.60.

Cross-Reference to Prior Signals

Several recent insider transactions and institutional positioning data align with this earnings print. On 2026-05-04, ADI Chair and CEO Vincent Roche sold 10,000 common shares for gross proceeds of $3,979,100 at $397.91 per share, concurrent with two M-exempt share transfers at a drastically lower $94.41 per share. Additionally, as of 2025-12-31, ADI’s 13F filing shows 2041 institutional holders (a 128 quarter-over-quarter increase), with total institutional AUM of $117.4 billion representing 88.2% of the company’s float. Analyst ratings remained largely stable through May 2026, with 7 Strong Buy, 22 Buy, and 5 Hold ratings as of May 1, down from 9 Hold ratings on March 1, 2026.

Unreported Data Points

This initial earnings release omits several key details: 1) Full segment revenue breakdown for Q2 FY26, which will only be available in the 2026-05-20 filed 10-Q; 2) The impact of the May 19, 2026 announced $1.5 billion Empower Semiconductor acquisition on ADI’s near-term balance sheet and cash flows; 3) Detailed gross and operating margin metrics beyond the aggregate EBIT figure.