Analog Devices Q3 2026 Earnings Analysis

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Groups: CHIPS (https://betafinch.com/groups/CHIPS)

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown of the companies moving the market. I'm Alex.

JORDAN: And I'm Jordan. Today we're digging into Analog Devices' fiscal Q3 2026 results — and Alex, this one's got a headline number that's hard to miss.

ALEX: Before we get into it — quick reminder for everyone listening. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Good. Now let's talk numbers. ADI just posted its first-ever $4 billion quarter — $4.02 billion in revenue, up 11% sequentially and 40% year over year. That's a big deal for a company this size.

ALEX: It really is. And it wasn't just one segment carrying the load — growth was broad-based. Industrial was up 53% year over year, automotive up 16%, communications up a massive 84%, and even consumer, which has been the laggard, grew 6%.

JORDAN: Communications is the one that jumps out to me. Data center now makes up 80% of that segment, and it grew over 100% year over year — both optical and power products doubled. That's the AI infrastructure story playing out in real numbers.

ALEX: Right, and it flowed straight to the bottom line. Gross margin hit 72.5%, operating margin was 50%, and EPS came in at a record $3.45 — up 68% from a year ago.

JORDAN: And the guidance for Q4 is even stronger. They're calling for $4.3 billion in revenue and gross margin jumping another 150 basis points to around 74% — levels we haven't seen since the 2022 peak. CFO Rich Puccio said that's coming from favorable mix, higher fixed-cost absorption, and — this caught my ear — price increases that haven't even fully kicked in yet.

ALEX: Let's talk strategy, because CEO Vincent Roche spent a lot of time on what he called the "grid-to-chip" story. Basically, ADI isn't just selling chips that go inside AI servers — they're positioning themselves across the entire power chain, from the electrical grid all the way down to the processor.