Key statistics

Is ADI a good stock to buy in 2026?

Analog Devices (ADI) stock currently holds a “Buy” consensus from analysts, with 79.6% rating it favorably, suggesting continued confidence in its operational performance. However, its P/E ratio of 75.07x significantly exceeds the Semiconductors sector average of 61.7x, and its discounted cash flow (DCF) fair value of $207.5 indicates a substantial overvaluation of -50.1% compared to its current price. This mixed signal requires investors to carefully weigh strong analyst sentiment and operational strength against a premium valuation when considering if ADI is a good stock.

2026 ADI price scenarios

Based on analyst consensus of $378.56 from 54 analysts. Not a prediction by Alert Invest.

About Analog Devices, Inc. (ADI)

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and high-end consumer markets; and power ICs include performance, integration, and software design simulation tools for accurate power supply designs.

Analog Devices, Inc. is led by CEO Vincent T. Roche and employs approximately 24,000 individuals globally, distinguishing itself as a leader in high-performance analog, mixed-signal, and digital signal processing technologies. The company’s unique strengths lie in its extensive portfolio of innovative solutions catering to diverse markets, from industrial automation and automotive electrification to communications infrastructure and consumer electronics. This broad market exposure and deep expertise allow ADI to embed its technology into a vast array of critical applications worldwide.

ADI competitive moat and business analysis

Analog Devices enjoys a robust competitive advantage, evident in its impressive net margin of 23.02%. While Return on Equity (ROE) data is not available (N/A), the company’s strong margins highlight its ability to translate revenue into substantial profits, a hallmark of pricing power and efficient operations in the complex semiconductor industry. This is driven by specialized intellectual property and deep customer relationships.

While detailed segment and geographic revenue breakdowns for fiscal year 2025 are not explicitly provided in granular data, Analog Devices is known for its diversified revenue streams. The company typically serves key markets including industrial, automotive, communications, and high-end consumer sectors, with a global presence that mitigates reliance on any single region or industry, ensuring a resilient revenue base.

ADI’s revenue growth of 16.9% year-over-year indicates a positive trend in its operational moat. This growth suggests that demand for its specialized integrated circuits and solutions is increasing, likely fueled by innovation and a strong market position. Without a specific transcript quote, we can infer that the company is effectively navigating the dynamic technology landscape and expanding its influence.

To understand ADI’s competitive standing, comparing it with peers is crucial. For a deeper dive into how Analog Devices stacks up against Cadence Design Systems, Dell Technologies, and KLA Corporation, consider reviewing direct comparisons like ADI vs CDNS, ADI vs DELL, and ADI vs KLAC. These analyses offer insights into relative valuation, growth prospects, and operational efficiency within the broader Technology sector.

Analog Devices, Inc. analyst rating

Based on 54 analysts. 79.6% rate ADI Buy or Strong Buy.

A 79.6% “Buy” rating from 54 analysts is a strong vote of confidence for a company in the highly competitive Technology sector, particularly within Semiconductors. This suggests that a significant majority of professional analysts believe ADI stock has favorable prospects for appreciation in the coming year.

Is ADI undervalued or overvalued?

When assessing ADI valuation, the stock presents a mixed picture. Its P/E ratio of 75.07x is notably higher than the Semiconductors sector average of 61.7x, indicating that investors are paying a premium for its earnings. This suggests that the current ADI stock price might already factor in substantial future growth expectations, making it appear expensive relative to its industry peers.

Furthermore, the discounted cash flow (DCF) analysis places ADI’s fair value at $207.5, which is a significant -50.1% below its current market price. This substantial discrepancy raises concerns about whether ADI stock is overvalued. While the market often prices in future potential, such a large divergence from a fundamental valuation model warrants careful consideration for potential investors.

ADI financial health & key metrics

For value investors considering ADI stock, a detailed look at its financial health reveals both strengths and areas of concern. While Analog Devices boasts strong profitability with a net margin of 23.02% and impressive revenue growth of 16.9%, suggesting operational efficiency and market demand, its valuation metrics signal caution. The elevated P/E ratio and a DCF fair value significantly below the current price indicate that ADI valuation is stretched, potentially limiting upside for those seeking fundamentally undervalued opportunities. The company’s low debt-to-equity ratio of 0.26x is a positive for financial stability.

Analog Devices, Inc. earnings history & next report

Analog Devices, Inc. reported EPS of $2.46, beating estimates by 6.49%. Next earnings: 2026-05-20 with EPS estimate of $2.88.

Analog Devices, Inc. is set to report its next earnings on 2026-05-20, with an estimated EPS of $2.88. Following its previous report where it beat estimates by 6.49% with an EPS of $2.46, investors will be closely watching for continued strong performance and any updates on revenue guidance. Key areas of focus will include commentary on demand trends across its core industrial, automotive, and communications markets, as well as the impact of inventory levels and supply chain dynamics on future profitability.

ADI daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

ADI insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent ADI analyst rating changes

Analog Devices, Inc. stock news today

How does ADI compare to its peers?

Understanding how Analog Devices (ADI) stock stacks up against its industry peers is crucial for a comprehensive investment decision. While ADI holds a significant position in the semiconductor space, examining competitors can reveal relative strengths and weaknesses in terms of innovation, market reach, and financial performance.

FAQ — Analog Devices, Inc. (ADI) stock