Analog Devices forecasts $3.1B Q1 revenue as industrial and communications lead FY26 growth
View original at seekingalpha.comAnalog Devices forecasts $3.1B Q1 revenue as industrial and communications lead FY26 growth Earnings Call Insights: Analog Devices (ADI) Q4 2025 MANAGEMENT VIEW * CEO Vincent Roche reported "continued growth in revenue and earnings per share, both of which finished above the midpoint of our outlook," noting that all en…
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Aerospace and defense is expected to see double-digit growth in FY26 and the business has the capacity by the end of the decade to more than double
80% confidenceExpectation is that in FY26, industrial and communications will lead the charge
80% confidenceRevenue for fiscal 2025 came in at just over $11 billion, up 17% from fiscal 2024, with double-digit growth across all end markets
80% confidenceAutomotive has been the strongest market but near term the market has been more resilient than predicted, though some upside may have been tariff and policy related
80% confidenceLead times for most products are sub-13 weeks and visibility has not necessarily improved over the last 2 years
80% confidenceDouble-digit growth expected in aerospace and defense for FY2026, with business having capacity to more than double by end of the decade
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceAuto has been ADI's strongest market and near term the market has been more resilient than predicted
80% confidenceQ1 2026 revenue expected to be $3.1 billion, plus or minus $100 million, with operating margin at the midpoint of 43.5%
80% confidenceThere is risk in auto around tariff and some of the macro environment
80% confidenceWireless communications bottomed during the year with expectations for recovery
80% confidenceCommunications expected to be up 10% above seasonal
80% confidenceLead times are sub-13 weeks for most products and visibility has not necessarily improved over the last 2 years
80% confidenceADI generated record free cash flow of more than $4 billion in fiscal 2025
80% confidenceAerospace and defense expected to have double-digit growth in FY26 and business has the capacity by the end of the decade to more than double
80% confidenceNew Acoustics platform is enabling ADI to triple the value generated over legacy designs
80% confidenceData center business grew about 50% in FY2025 and ATE business grew at 40%
80% confidenceWireless communications bottomed during the year with expectations for recovery
80% confidenceData center business in FY25 grew about 50% and ATE business grew at 40% last year
80% confidenceADI is realizing stronger value capture as reflected in increase in average selling prices, particularly in new products where ASPs significantly exceed legacy offerings
80% confidenceIndividual end market margins versus average have not changed in any meaningful way
80% confidenceIndustrial expected to be up mid-single digits above seasonal
80% confidenceFiscal 2025 gross margin was 69.3% and operating margin was 41.9%
80% confidenceMaxim revenue synergies clearly accelerated in FY25 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceRevenue for the year came in at just over $11 billion, up 17% from fiscal '24, with double-digit growth across all end markets
80% confidenceData center grew about 50% in fiscal 2025 and ATE business grew at 40%
80% confidenceMaxim revenue synergies clearly accelerated in FY2025 and are in the hundreds of millions against $1 billion target by 2027
80% confidenceADI is realizing stronger value capture as reflected in the increase in average selling prices, particularly in new products where ASPs significantly exceed those of legacy offerings
80% confidenceExpectation that in FY26, industrial and communications will lead the charge
80% confidenceMaxim revenue synergies clearly accelerated in '25, and it's in the hundreds of millions against our $1 billion target by '27
80% confidence