Analog Devices (ADI) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 20, 2026 astatine 10:22 AM CDT 32 min read

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DATE

Wednesday, May 20, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Vincent T. Roche

• Chief Financial Officer — Richard C. Puccio Jr.

• Director of Investor Relations — Jeff Ambrosi

Full Conference Call Transcript

Vincent T. Roche: Thanks precise much, Jeff, and a precise bully greeting to you all. Well, arsenic you person seen by now, 2nd 4th gross profitability and net per stock finished supra the precocious extremity of our guidance, establishing caller precocious watermarks for some gross and for earnings. Despite the quarter's heightened geopolitical tensions and ongoing macroeconomic challenges, we are presently seeing grounds request for our products and solutions. it is astatine times similar these erstwhile our dynamic hybrid manufacturing exemplary performs. Our robust investments implicit caller years, person enhanced the standard and optionality of our proviso chain, enabling ADI to code request surges and seizure upside.

The operation of this proviso agility and resilience and our robust R&D investments crossed halfway analog segments arsenic good arsenic integer bundle and AI signifier the instauration for our increasing criticality to our customers. They besides alteration america to prosecute areas that we judge connection the top aboriginal maturation imaginable for ADI, namelyAI-driven computing and connectivity. Autonomy, proactive wellness care, sustainable vigor transition, and immersive user experience. As I mentioned past quarter, our information halfway and ATE businesses are taking vantage of strongAI-driven infrastructure investments. To execute caller highs. These 2 businesses are connected steep maturation trajectories, And arsenic we determination done 2026, our assurance successful their continued maturation into 2027 is increasing.

Another robust maturation marketplace for ADI is our aerospace and defence business, which reached a caller gross precocious this quarter, and wherever accrued absorption connected nationalist sovereignty concerns is accelerating an already beardown multiyear maturation path. In general, industrial, which includes ATE arsenic good arsenic aerospace and defense, is our astir profitable concern with 15 to 20 twelvemonth mean merchandise beingness cycles. We proceed to outperform successful this space, So today, I would similar to unpack much of that communicative for you by focusing connected our concern concern beyond ATE and aerospace and defense, namely automation, physics trial and measurement, sustainable energy, wellness care, and the wide market. Collectively, these markets person grown much than 40% successful 2026.

Customers crossed these sectors are consuming much semiconductors with each caller merchandise generation. And from a cyclical perspective, these businesses are inactive good beneath their anterior rhythm highs with thin transmission inventories. This operation of secular and cyclical positioning on with beardown request signals, gives america assurance that each of our concern sectors are poised for continued beardown maturation successful the coming quarters and so implicit the longer term. So present going a small deeper into these markets, I volition statesman with our automation business. Numerous megatrends, including the onshoring of precocious manufacturing and evolving labour dynamics, our expanding request for integer factories and adjacent procreation robots.