Analog Devices (ADI) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 18, 2026 astatine 10:32 AM CST 32 min read

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Wednesday, February 18, 2026 astatine 10 a.m. ET

• Chair, President, and Chief Executive Officer — Vincent Roche

• Chief Financial Officer — Richard Puccio

• Vice President, Investor Relations — Jeff Ambrosi

Vincent Roche: Thank you, Jeff, and a precise bully greeting to you all. Well, we extended our momentum done the archetypal quarter, revenue, profitability, and net per stock each coming successful supra the midpoint of our guidance. Year-over-year maturation was wide based crossed our extremity markets, with peculiar spot successful concern and communications, reflecting some cyclical betterment and institution circumstantial execution. This show underscores the spot of ADI's and resilient concern model, enabling america to navigate uncertainty portion continuing to seizure stock successful the markets that substance most. As you person heard maine accidental galore times before, the wellspring of ADI's prosperity is built connected a civilization of relentless innovation and heavy lawsuit engagement, crossed the beingness rhythm of our solutions.

As such, these activities are ever our archetypal telephone connected capital. And present we are investing astatine grounds levels. At the aforesaid time, we stay committed to returning 100% of our escaped currency travel to shareholders implicit the agelong term. And I americium pleased to stock that we conscionable announced an 11% summation to this year's dividend, extending our awesome way grounds of yearly dividend growth, and reinforcing our absorption connected delivering accordant shareholder returns. Looking ahead, a beardown 2nd 4th outlook and improving request signals reenforce our content that fiscal 2026 has the imaginable to beryllium a banner twelvemonth for ADI, barring unforeseen worldly changes successful the macroeconomic and geopolitical backdrop.

Now arsenic mentioned successful erstwhile calls, we are aligning our strategical investments to cardinal megatrends that we judge connection outsized semipermanent secular maturation potential, namely autonomy, proactive wellness care, sustainable vigor transition, immersive sensory experience, and AI-driven computing and connectivity. And it is successful this past country that I volition absorption the remainder of my comments today. Over our history, we person prided ourselves connected our quality to consciousness the aboriginal signals of emerging trends and to put aggressively to guarantee enactment arsenic those trends proliferate. Artificial quality is simply a bully lawsuit successful point.

Our investments targeting solutions for AI's monolithic show requirements are generating important returns successful 2 chiseled parts of ADI, our automated trial instrumentality and information halfway businesses, which collectively marque up adjacent to 20% of our revenue. Now fto maine statesman with automated trial instrumentality oregon ATE. Revenue accrued astir 40% successful fiscal 2025 and further accelerated successful 2026, fueled by respective factors. ADI's ATE portfolio sits astatine the bosom of the astir analyzable semiconductor accumulation trial systems for integer SoC, memory, RF and millimeter wave, and powerfulness devices, arsenic good arsenic strategy level products.