# Analog Devices Inc. (ADI)

> Designs and sells chips and software that help electronic equipment sense, measure, control power, and process real-world signals.

- Exchange: Nasdaq Global Select Market · Sector: Technology · Industry: Semiconductors
- Headquarters: Wilmington, Massachusetts, near Boston
- Founded: 1965
- Employees: 24,500 (as of 2025-11-01)
- SEC CIK: 0000006281 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000006281))
- Full page: https://inspectstocks.com/stocks/adi
- Data as of: price 2026-09-28; newest filing used 2026-08-19; latest fiscal period ended 2026-08-01

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $13.9B | $12.8B |
| Revenue growing recently | passed | $13.9B | $11B |
| Free cash flow positive | passed | $4.9B |  |
| Free cash flow growing overall | passed | $4.9B | $3.7B |
| Free cash flow growing recently | passed | $4.9B | $4.3B |

Business quality (the + / − mark): 5 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 29.8% |  |
| Healthy profit margin | passed | 29.8% |  |
| Strong operating margin | passed | 35.5% |  |
| Good return on equity | failed | 12.2% |  |
| Debt under control | passed | 0.26 |  |
| Turns sales into cash | passed | 35.6% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $13.9B |
| Net income, trailing twelve months | $4.1B |
| Free cash flow, trailing twelve months | $4.9B |
| Net margin | 29.8% |
| Operating margin | 35.5% |
| Return on equity | 12.2% |
| Debt to equity | 0.26 |
| Diluted EPS, trailing twelve months | $8.42 |
| Share price | $395.68 |
| Market value | $191.7B |
| Price / earnings | 47.0x |
| Price / sales | 13.8x |

## What the business does

Analog Devices makes integrated circuits (ICs) that connect physical signals—such as temperature, motion, sound, and electrical current—to electronic equipment. Its chips can convert signals into digital data, adjust signals, manage electrical power, or process data in real time. Customers include equipment makers in industrial, automotive, communications, and consumer markets, as well as companies that build electronic subsystems for larger systems.

### How it makes money

- **Industrial chips and related products** (49.0% (three months ended 2026-08-01)) — Revenue comes from selling chips used in factory automation, testing and measurement equipment, aerospace and defense systems, healthcare equipment, and energy systems.
- **Automotive chips and related products** (24.8% (three months ended 2026-08-01)) — Revenue comes from selling chips for vehicle power management, battery systems, audio and connectivity, driver-assistance systems, and in-car displays and entertainment.
- **Communications chips and related products** (16.3% (three months ended 2026-08-01)) — Revenue comes from selling chips for data-center power and optical connections, wireless network equipment, and other communications systems.
- **Consumer chips and related products** (9.9% (three months ended 2026-08-01)) — Revenue comes from selling chips for smartphones, headphones and earbuds, wearable devices, gaming equipment, and audio and video products.

### Products

- **Data converters** — Chips that turn continuous signals from the physical world into digital data, or turn digital data back into electrical signals.
- **Power management and reference chips** — Chips that convert, regulate, and control electrical power in devices such as vehicles, communications equipment, and factory systems.
- **Amplifiers, radio-frequency (RF), and microwave chips** — Chips that prepare or strengthen signals, including signals used in wireless equipment, instruments, vehicles, and aerospace systems.
- **Sensors and actuators** — Parts that detect or respond to physical conditions. Examples include accelerometers for acceleration, gyroscopes for rotation, and sensors for temperature or magnetic fields.
- **Digital signal processing (DSP) chips** — Programmable chips that perform rapid calculations on digital data, often to process information converted from real-world signals.
- **CodeFusion Studio and Power Studio** — Software tools for developing embedded systems and designing and testing power-management circuits.

### Customers

- Manufacturers of industrial equipment, including factory automation, robotics, test and measurement, and energy systems; they buy directly or through distributors.
- Automotive manufacturers and suppliers that build vehicle battery, power, audio, connectivity, and driver-assistance systems.
- Manufacturers of communications equipment, including data-center, wireless network, and optical communications equipment.
- Consumer electronics makers, including manufacturers of smartphones, headphones, earbuds, wearables, and gaming equipment.
- Original equipment manufacturers (OEMs) and companies that build electronic subsystems for integration into larger systems.
- The U.S. government, government prime contractors, and certain commercial customers.

### Competitors

- Texas Instruments (TXN) — Analog chips, data converters, amplifiers, and power-management chips used in industrial, automotive, and consumer equipment.
- NXP Semiconductors (NXPI) — Chips for automotive systems, industrial equipment, and communications.
- STMicroelectronics (STM) — Chips and sensors for automotive, industrial, and consumer equipment.
- Microchip Technology (MCHP) — Analog and power-management chips, sensors, and embedded processing products for industrial and automotive customers.

### What it depends on

- Uses outside wafer foundries, including Taiwan Semiconductor Manufacturing Company, as well as its own wafer factories.
- Relies on third parties for some assembly, testing, raw materials, components, and transportation.
- Sells through independent distributors as well as directly to customers; distributors buy products to resell and may hold inventory.
- Often makes products based on customer forecasts or orders that can be delayed or canceled, rather than long-term purchase commitments.

### What could go wrong

- A disruption at outside wafer foundries, assembly or test providers, or suppliers of materials and components could delay manufacturing and customer shipments.
- Semiconductor demand can rise and fall; customer forecasts can be wrong, and orders may be canceled or delayed, leaving inventory that is hard to sell.
- Tariffs, export controls, and other trade restrictions or political and economic disruptions could affect international operations, supply, and sales.

## More on this company

- [Overview](https://inspectstocks.com/stocks/adi)
- [Financial statements](https://inspectstocks.com/stocks/adi/financials)
- [Competitors](https://inspectstocks.com/stocks/adi/peers)
- [Earnings](https://inspectstocks.com/stocks/adi/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.