ADI reported a record quarter with strong growth across all end markets, particularly data center and industrial. Management raised guidance significantly, citing an unprecedented demand cycle for AI infrastructure and energy systems, and outlined a long-term strategy to capitalize on the 'grid-to-chip' opportunity. Revenue was $4.02B, up 40% YoY, with all end markets growing. Data center is the primary growth driver, now accounting for 80% of communications revenue.
ADI reported a record quarter with strong growth across all end markets, particularly data center and industrial. Management raised guidance significantly, citing an unprecedented demand cycle for AI infrastructure and energy systems, and outlined a long-term strategy to capitalize on the 'grid-to-chip' opportunity. Revenue was $4.02B, up 40% YoY, with all end markets growing. Data center is the primary growth driver, now accounting for 80% of communications revenue.
Management highlighted that AI demand is accelerating across data center and energy, with data center revenue growing over 100% year-over-year in both optical and power, and they see the 2030 data center and energy SAM more than doubling from prior expectations. They also…
Management highlighted that AI demand is accelerating across data center and energy, with data center revenue growing over 100% year-over-year in both optical and power, and they see the 2030 data center and energy SAM more than doubling from prior expectations. They also…
Management highlighted that AI demand is accelerating across data center and energy, with data center revenue growing over 100% year-over-year in both optical and power, and they see the 2030 data center and energy SAM more than doubling from prior expectations. They also…
Reported gross margin was 67.32%, reinforcing the quarter's better-than-guided profitability.
Management highlighted that AI demand is accelerating across data center and energy, with data center revenue growing over 100% year-over-year in both optical and power, and they see the 2030 data center and energy SAM more than doubling from prior expectations. They also emphasized a second-generation AI opportunity in physical world applications like robotics and autonomous mobility.
Management noted broad-based growth across all end markets, with industrial, automotive, and communications all growing sequentially and year-over-year. They said customers are still running lean on inventory, and book-to-bill is above one, with design activity providing confidence in multi-year growth.
Capital expenditure is being maintained within the long-term model of 4% to 6% of revenue. The company is investing in hybrid manufacturing, adding tools and external wafer capacity to support demand, and scenario planning for potential capacity additions if growth sustains.
Management expressed strong confidence in multi-year growth driven by AI and energy, citing record results, accelerating demand, and raising SAM expectations significantly.
If ADI cannot secure enough capacity, it could constrain revenue growth and market share gains, while expanded capacity could require higher capex.
“we are scenario planning what this could look like if this kind of growth sustains and how we would balance across our hybrid manufacturing with additional external wafers, but also whether we need to add and many more.”
“the 1% difference between 97% and 98% efficiency may not sound like very much, But a 97% conversion efficiency loses roughly 50% more energy through heat than a 98% solution.”
“We increased inventory $83 million sequentially as we continued to build strategic die bank to support accelerating demand. We exited fiscal Q3 with record balance sheet inventory and increased inventory at our distributors. Despite the in…”
| Показатель | Период | Диапазон | Середина | Статус |
|---|---|---|---|---|
| EPS | FY2027 Q1 | $3.71–$4.01 | $3.86 | GUIDED |
| Gross margin | FY2027 Q1 | 74% | 74% | GUIDED |
| Op margin | FY2027 Q1 | 51%–53% | 52% | GUIDED |
| Revenue | FY2027 Q1 | $4.2B–$4.4B | $4.3B | GUIDED |
| Дата прогноза | Показатель | Целевой период | Прогноз | Факт | Результат |
|---|---|---|---|---|---|
| FY2026 Q2 | EPS | FY2026 Q3 | $3.15–$3.45 | $3.45 | Met / beat |
| FY2026 Q2 | Op margin | FY2026 Q3 | 48%–50% | 40.1% | Missed |
| FY2026 Q2 | Revenue | FY2026 Q3 | $3.8B–$4B | $4.0219B | Met / beat |
| FY2026 Q1 | EPS | FY2026 Q2 | $2.73–$3.03 | $3.09 | Met / beat |
| FY2026 Q1 | Op margin | FY2026 Q2 | 46.5%–48.5% | 38.08% | Missed |
| FY2026 Q1 | Revenue | FY2026 Q2 | $3.4B–$3.6B | $3.6235B | Met / beat |
ADI's grid-to-chip strategy means its data center revenue is now heavily tied to the build-out of power infrastructure, not just compute. Management notes a 1% efficiency gain (97% to 98%) reduces heat loss by 50%, making power delivery a major competitive battleground. — The focus on energy efficiency and power delivery highlights the importance of companies providing thermal management and power infrastructure for data centers.
… continued broad-based growth across our portfolio. Customers are leveraging ADI's products and solutions to push for greater than 98% conversion efficiencies, multi-kilowatt power delivery, with peak power levels up to two times the rated load and comprehensive protection, telemetry, and fault recording capabilities that enhance system reliability and maximize uptime. To put just one of those differentiators in context, the 1% difference between 97% and 98% efficiency may not sound like very much, But a 97% conversion efficiency loses roughly 50% more energy through heat than a 98% solution. Over time, of course, that difference compounds in terms of the need for additional cooling infrastructure, stress on equipment, and operating costs. And we believe our opportunity will continue to grow substantially as power density demands of AI clusters continue to increase. The industry's architectural transition toward 800 volt DC power distribution, for example, plays directly into ADI's power management expertise and portfolio. And we're seeing a significant design and uptake for our protection and 800 volt to intermediate power conversion technologies, which can deliver 20 …
ADI is building strategic 'die bank' inventory ahead of demand, but its own channel weeks have fallen below its 6-7 week target, indicating demand is outpacing supply. This is a leading indicator for potential pricing power and supply tightness in analog components. — Signals a potential industry-wide analog supply shortage, giving pricing power to suppliers like ADI and its competitor TI.
“We increased inventory $83 million sequentially as we continued to build strategic die bank to support accelerating demand. We exited fiscal Q3 with record balance sheet inventory and increased inventory at our distributors. Despite the”
… our outlook for a record $3.45. up 12% sequentially and 68% year-over-year. Now I'd like to highlight a few items from our balance sheet and cash flow statements. Cash and short-term investments decreased to $2.3 billion, driven by the successful closing of our Empower semiconductor acquisition on July 7, where we paid $1.5 billion in an all-cash transaction. Our net leverage ratio now sits at 0.9. We increased inventory $83 million sequentially as we continued to build strategic die bank to support accelerating demand. We exited fiscal Q3 with record balance sheet inventory and increased inventory at our distributors. Despite the increases, our days declined to 156 and channel weeks fell below our six to seven week target. Over the trailing 12 months operating cash flow and CapEx were 5.5 billion and 0.6 billion respectively, We continue to expect fiscal 26 CapEx to be within our long-term model of 4% to 6% of revenue. Free cash flow over the trailing 12 months was a record $4.9 billion, or 36% of revenue. Over that same period, we returned more than 100% to shareholders through dividends and share repurchases. As a reminder, the durability and strength of our financial model …