A maker of high-performance analog and mixed-signal chips, Analog Devices builds the tiny sensors, converters, and power circuits found in cars, factories, phones, and medical gear, selling over 75,000 products to customers in dozens of countries. Two MIT graduates, Ray Stata and Matthew Lorber, started it in 1965 in a Cambridge apartment, naming it for its focus on analog signal processing. The company even invented a MEMS accelerometer—first funded for military use—that made modern airbags smarter and safer.
Q3 FY2026 revenue rose 40% to $4.02B and net income rose 158% to $1.34B on broad-based demand.
The recovery that began a year ago has now produced the company's highest quarterly on record. Revenue rose 40% to $4.02B and widened 5.2 points to 67.3% as Industrial and Communications demand, led by AI data center infrastructure, drove the quarter. The company enters the final quarter of fiscal 2026 with at 40.1% and a cybersecurity incident under investigation.
Key takeaways
rose 40% to $4.02B, with Industrial up 53% on test equipment and aerospace and defense, and Communications up 84% on AI-related data center infrastructure investments.
widened 5.2 points to 67.3%, driven by higher manufacturing fixed-cost utilization and favorable product mix.
rose 158% to $1.34B, helped by a $24.4M gain on the sale of a Penang, Malaysia subsidiary and a lower of 13.3% versus 32.1% a year earlier.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 40% to $4.02B and net income rose 158% to $1.34B on broad-based demand.
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increased 40% in Q3 and 36% in the first nine months of fiscal 2026, driven by broad-based demand across end markets.
Industrial grew 53% in Q3, led by test equipment and aerospace and defense, while Communications grew 84%, led by AI-related data center infrastructure investments.
reached 40.1%, up 11.7 points , as rose 97% to $1.61B.
was $1.60B in the quarter, up 38% , and $3.84B for the first nine months.
The company disclosed a June 2026 cybersecurity incident involving exfiltration of files from certain systems; operations were not interrupted and the company does not currently believe the incident is reasonably likely to materially impact its business, operations, or financial condition.
What changed
The Q2 FY2026 watch item on whether Industrial and Communications growth would hold or moderate is settled: Industrial growth accelerated from 56% to 53% and Communications from 79% to 84% .
held at 67.3%, matching the Q2 FY2026 level that had been flagged as a level to watch, with the expansion narrowing from 6.3 points to 5.2 points.
The Section 232 tariff investigation flagged in prior filings is not mentioned in this quarter's risk factors; the only material change to risk factors is the expanded cybersecurity disclosure tied to the June 2026 data exfiltration incident.
The Q2 FY2026 sequential decline in reversed: operating cash flow rose 84% sequentially to $1.60B from $872.0M.
What to watch
Q4 FY2026 by end market to see if the 53% Industrial and 84% Communications growth rates sustain or moderate as the company laps the strongest quarters of the prior-year recovery.
Q4 FY2026 against the 67.3% level as factory utilization and product mix respond to demand.
Any update on the June 2026 cybersecurity incident investigation, including the nature and scope of exfiltrated information and any resulting litigation, regulatory action, or remediation costs.
Full-year FY2026 execution against the guided 4-6% of .
expanded 520 in Q3 to 67.3% and 580 basis points in the nine-month period to 66.6%, primarily on higher manufacturing fixed-cost utilization and favorable product mix.
rose 158% in Q3 to $1.34 billion, helped by a $24.4 million gain on the sale of a Penang, Malaysia subsidiary and a lower of 13.3% versus 32.1% a year earlier.
Liquidity remained strong with $2.3 billion in cash, cash equivalents and short-term investments, and of $3.84 billion for the nine-month period.
The company expects fiscal 2026 of approximately 4% to 6% of and declared a $1.10 per share quarterly payable September 15, 2026.
Quantitative and Qualitative Disclosures About Market Risk
We are subject to market risks related to our financial instruments, including those identified in Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of our Annual Report on Form 10-K for the fiscal year ended November 1, 2025, which was filed with th…
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We are subject to market risks related to our financial instruments, including those identified in Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of our Annual Report on Form 10-K for the fiscal year ended November 1, 2025, which was filed with the Securities and Exchange Commission on November 25, 2025. There were no material changes in the nine-month period ended August 1, 2026 to the information identified in the Annual Report on Form 10-K for the fiscal year ended November 1, 2025.
The only material change to risk factors is an expanded cybersecurity risk disclosure tied to a June 2026 data exfiltration incident.
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The company disclosed a June 2026 cybersecurity incident involving of files from certain systems, with an ongoing investigation into the nature and scope of the exfiltrated information.
Operations were not interrupted and the company currently does not believe the June 2026 incident is reasonably likely to materially impact its business, operations, or financial condition, but this assessment could change.
The company expects continued cybersecurity attacks and incidents, and warns that its security measures and those of third-party service providers and strategic partners may not detect or prevent all breaches.
Geopolitical tensions and the company's use of AI are cited as factors increasing vulnerability to cyberattacks, including AI-generated malicious code and AI-enhanced threat actor capabilities.
Potential consequences include litigation, regulatory action, customer loss, reputational damage, and significant response and remediation costs, with added pressure from SEC rules requiring materiality determinations within four business days.