Abstract

Analog Devices will report results on February 18, 2026 Pre-Market, with consensus pointing to revenue of $3.11 billion and adjusted EPS of $2.30, while investors gauge margin cadence, pricing actions, and AI-related power demand.

Market Forecast

For this quarter, revenue is estimated at $3.11 billion, up 31.77% year over year, with adjusted EPS at $2.30, up 49.27% year over year, and EBIT at $1.35 billion, up 43.00% year over year; explicit guidance for gross margin or net margin has not been provided, though the last reported gross margin was 63.13% and net margin was 25.61% as reference points. Within the portfolio, diversified industrial solutions remain the largest revenue contributor (about 44.73% of the mix last quarter) with automotive next (29.75%), and both are set to benefit from sequential stabilization implied by recent order trends and company indications. The most promising near-term growth vector identified by investors is the automotive franchise, which accounted for $3.28 billion in the business mix; while segment-level year-over-year growth is not disclosed, company-wide revenue is forecast to rise 31.77% year over year this quarter, and the segment is expected to participate in that uplift.

Last Quarter Review

Analog Devices delivered revenue of $3.08 billion (up 25.91% year over year), a gross profit margin of 63.13%, GAAP net profit attributable to shareholders of $788.00 million with a net profit margin of 25.61%, and adjusted EPS of $2.26 (up 35.33% year over year). Sequential profitability improved, with GAAP net profit up 51.92% quarter on quarter; revenue exceeded the prior consensus by $69.35 million and adjusted EPS topped by $0.04, supported by operating leverage and disciplined expense control. By end-market mix, industrial solutions represented approximately 44.73% of sales and automotive 29.75% in the reported period, underscoring a balanced demand profile; management’s emphasis on backlog conversion and normalized channel inventory helped sustain momentum across core franchises.

Current Quarter Outlook (with major analytical insights)

Core Portfolio Drivers This Quarter

The company enters the quarter with a revenue estimate of $3.11 billion, implying a sharp year-over-year expansion and continuation of the sequential recovery evident in the prior print. With last quarter’s gross margin at 63.13% and net margin at 25.61% as a base, investors will look for signs that pricing discipline and mix can preserve margin levels even as volume ramps. Recurring commentary around backlog conversion and channel normalization suggests that unit sell-through and shipments are re-aligning, which typically improves factory loadings and absorption, supporting both gross margin stability and operating leverage.

Order visibility across diversified applications also matters for this print, because a broader breadth of small-to-mid ticket demand often correlates with more predictable shipment flow. Given that adjusted EPS is estimated at $2.30, up 49.27% year over year, achieving or beating this bar will likely hinge on a healthy conversion of booked business into revenue and ongoing cost discipline, particularly in R&D and SG&A. Investors will also pay close attention to book-to-bill commentary, as a ratio at or above one would corroborate the sustainability of growth into the subsequent quarter and provide confidence that the revenue trajectory remains intact.

Pricing actions that took effect in early February are a notable near-term variable for both top line and margin cadence. If these actions are absorbed smoothly by customers in defense, industrial, and other specialty markets, they could bring incremental gross margin support and partially offset any mix-related headwinds. The company’s prior-quarter revenue and EPS beats underscore execution resilience, and investors will be looking for guidance that signals continued operating leverage as volumes scale.

AI Infrastructure Power and Connectivity

AI-driven investments in data center infrastructure are a meaningful undercurrent for this quarter’s setup. The company’s power-management and connectivity solutions align with the needs of high-performance compute boards and accelerator platforms, where power density, conversion efficiency, low noise, and signal integrity are essential. As cloud operators ramp deployments, higher-value content per rack for precision power rails, power sequencing, clocking, and analog front-ends can translate into revenue uplift and a favorable mix tilt, which would be consistent with the estimated EBIT growth of 43.00% year over year.

A key point for investors is the duration and breadth of AI-related demand. Early deployments tend to start with flagship data centers, but broader adoption across additional regions and enterprise workloads makes the opportunity more durable. If management indicates that demand is expanding beyond a handful of hyperscale programs, that would support the view that this vector can outgrow company averages over multiple quarters. In the near term, any color on orders tied to accelerator platforms, server power shelves, or high-current regulators would help quantify runway, and commentary that ties AI content gains to sustained gross margin stability could further de-risk the estimate path.

Supply readiness is another watch item. As deployment timelines can be lumpy, aligned capacity and fast cycle times are critical to capture upside without sacrificing pricing. The margin framework coming into the print is constructive, and strong execution in AI-adjacent solutions could enhance incremental margins if mix tilts toward higher ASP content. While segment-level year-over-year growth rates are not disclosed, the estimated 31.77% company-wide revenue growth for the quarter embeds an assumption that AI power and connectivity remain constructive contributors.

Automotive Electronics and Content Growth

Automotive remains a significant franchise within the portfolio and a key determinant of overall revenue quality. Content growth in advanced driver-assistance systems, electrification, power conversion, battery management, and zonal architectures continues to increase analog and power demand per vehicle. This structural trend supports sustained mid-cycle growth potential, and in cyclical recoveries, automotive orders often stabilize early, paving the way for steady unit shipments.

With automotive accounting for roughly 29.75% of the business mix in the most recent period and $3.28 billion in revenue within the reported business mix dataset, this quarter’s performance will hinge on whether OEM builds and tier-1 production schedules continue to normalize against inventory. Any management commentary that signals broad-based stability across OEMs and clear backlog visibility would be constructive for the revenue estimate of $3.11 billion and the EPS estimate of $2.30. Pricing actions can also play a role here: if contract repricing or selective price adjustments are accepted without volume penalties, the segment can contribute positively to margins, complementing core industrial demand.

Investors will be monitoring order linearity and regional dynamics. A balanced geographic footprint across North America, EMEA, and Asia reduces concentration risk, but macro softness in one region can still affect near-term shipments. Clear signals on order trends into the next quarter and whether automotive content gains are offsetting any softness in consumer-related subcategories will help frame sustainability. The return to growth implied by the estimates suggests that automotive should participate in, and potentially amplify, the broader company trajectory.

Key Stock Price Swing Factors

The first swing factor is gross margin guidance and commentary on mix. With the prior quarter’s gross margin at 63.13%, investors will look for indications that mix is holding and that pricing actions in February are adding support. Upside risk would be a better-than-expected mix skew toward power-dense and high-performance solutions, while downside risk would be a shift toward lower-margin SKUs without equivalent cost offsets.

The second swing factor is top-line guidance detail for the subsequent quarter. Given the current-quarter revenue estimate of $3.11 billion and the strong year-over-year growth embedded in consensus, a reiteration of order momentum and a book-to-bill at or above one would support the view that the growth cadence extends. Conversely, any sign of order pauses or a slower replenishment in industrial sub-verticals could temper the multi-quarter glide path implied in estimates.

The third swing factor is operating leverage and opex trajectory. The adjusted EPS estimate of $2.30 presumes continued expense discipline and scale benefits. If management signals reinvestment in R&D at a pace that outstrips revenue growth, EPS expansion might be more muted. On the other hand, confirmation that incremental gross profit is flowing through to the bottom line, alongside tight working capital management and inventory efficiency, would bolster confidence in hitting or surpassing the $1.35 billion EBIT estimate.

Analyst Opinions

Bullish viewpoints dominate recent institutional commentary from January 2026 through February 11, 2026, with multiple well-known firms reiterating or upgrading positive stances and no prominent bearish calls identified during this period; positive opinions outnumber bearish views by approximately 5 to 0, with a minority of neutral or equal-weight ratings. UBS raised its price target to $400 and maintained a Buy rating, citing a constructive setup into earnings and the company’s exposure to higher-value power and connectivity content. Bank of America increased its price target to $350 and remained positive, pointing to an improving revenue trajectory and elevated confidence in execution as consensus shifts higher.

Wells Fargo upgraded the shares to Overweight with a target of $340, emphasizing catalysts tied to AI-related power demand, improving order visibility, and operating leverage as volumes recover; this dovetails with the company’s forecasted EPS growth of 49.27% year over year. Oppenheimer lifted its target to $350 and reiterated an Outperform rating, highlighting attractive exposure to secular content growth in complex systems and the potential for above-consensus earnings as mix and pricing hold. Susquehanna reiterated a Positive stance with a $350 target, underscoring the opportunity in power management aligned with compute and networking deployments and the prospect of sustained margin support as channel inventories normalize.

Neutral views exist, such as Barclays’ Equalweight rating with a $315 price target and Arete Research’s Neutral stance at $322.50, reflecting a preference for confirmation that the cyclical rebound is translating into multi-quarter order visibility. However, the weight of recent commentary from bullish institutions centers on three pillars that align with the company’s near-term setup: robust year-over-year growth embedded in estimates (revenue +31.77%, EPS +49.27%), tangible exposure to AI-adjacent power and connectivity opportunities, and pricing discipline that can buttress gross margins.

From an analytical perspective, the consensus among bullish institutions is that this quarter’s earnings event is less about a single print and more about forward cadence. If guidance communicates that sequential momentum endures, pricing actions are absorbed by customers, and AI deployment schedules continue to broaden, the probability of upside to current-year forecasts rises. The absence of major bearish calls in the recent window reinforces this skew: with revenue estimated at $3.11 billion and EBIT at $1.35 billion, the majority view anticipates that execution and mix can deliver on, or modestly exceed, these thresholds. Investors will be looking to management’s commentary on backlog, pricing, and AI-related program ramps to validate the bullish case laid out by these institutions.