Analog Devices, Inc. (ADI) shares saw a decline of 5.6% over the past month, slightly better than the Zacks Semiconductor – Analog and Mixed industry’s drop of 6.1%. Currently, ADI is trading at a forward price-to-sales multiple of 9.76X, significantly higher than the industry average of 7.74X, reflecting a Zacks Value Score of D.
ADI’s industrial segment generated $1.97 billion in revenue for fiscal Q3 2026, a 53% increase year-over-year. The company expects its optical circuit switching revenues to roughly double in fiscal 2026, driven by advancements in AI infrastructure and power technologies. Additionally, the Zacks Consensus Estimate for fiscal 2026 earnings stands at $12.96 per share, indicating a projected 66.4% year-over-year growth.
Despite competitive pressures from companies like Texas Instruments and STMicroelectronics, ADI continues to maintain strong margins, with an adjusted gross margin of 72.5% and an adjusted operating margin of 50.0% in Q3 2026. ADI is investing heavily in R&D to adapt to market demands.
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