Analog Devices (ADI) FY26 Q2: Revenue +37% to Record, GAAP EPS +111%, Stock Falls
Basis for figures: All figures without separate notation are sourced from ADI's Form 10-Q filed with the SEC for fiscal Q2 2026 (period ending May 2, 2026). Market reaction, guidance, and adjusted (non-GAAP) metrics are based on company press releases and the earnings call (May 20, 2026) and noted separately.
Analog Devices (NASDAQ: ADI) posted fiscal Q2 2026 (February 1–May 2, 2026) revenue of $3,623.5 million and net income of $1,176.4 million, up +37.2% and +106.5%, respectively, year-over-year. GAAP diluted EPS surged from $1.14 to $2.40, +111%, and GAAP gross margin expanded 630 basis points to 67.3%. The company headlined its press release as a "Record" quarter; revenue of $3.62 billion is the highest in company history on a quarterly basis. Communications (AI data center) +79% and industrial (test equipment, defense) +56% growth led the recovery.
One fact belongs in the first paragraph alongside the numbers. Despite beating consensus — adjusted EPS of $3.09 vs. the Street's $2.90, revenue of $3.62B vs. the $3.51B estimate — the stock fell 5%–7% immediately after the earnings release. The catalyst: third-quarter guidance. The company's Q3 revenue outlook of approximately $3.63B is essentially flat with Q2 (no sequential growth), with GAAP EPS guidance of $2.45–$2.75. The income statement recovery is real, but the market has already priced it in and is now watching "the slope of the next quarter." That gap is where this report focuses.
