Analog Devices (ADI) official guidance

We continue to expect fiscal 2026 CapEx to be within our long-term model of 4%-6% of revenue.

We expect non-operating expenses of approximately $80 million and a tax rate of 12%-14%.

Based on these inputs, adjusted EPS is expected to be $3.86, ±$0.15.

We are actually expecting a gross margin increase of about 150 basis points to about 74%.

Operating margin at the midpoint is expected to be 52%, ±100 basis points.

We expect non-operating expenses of approximately $80 million

Now moving on to our fourth quarter outlook. Revenue is expected to be $4.3 billion, ±$100 million.

So basically at the midpoint of our outlook, we're expecting industrial to be up high single digits, communications to lead the growth, obviously led by data center up about 10%, consumer up high single digits, and automotive to be up low single digits.

So basically at the midpoint of our outlook, we're expecting industrial to be up high single digits, communications to lead the growth, obviously led by data center up about 10%, consumer up high single digits, and automotive to be up low single digits.

So basically at the midpoint of our outlook, we're expecting industrial to be up high single digits, communications to lead the growth, obviously led by data center up about 10%, consumer up high single digits, and automotive to be up low single digits.

My sense is that we'll see an extended runway to at least 2030 for strong double-digit growth across the data center market, as well as the energy space, by the way, which today is about a $0.5 billion revenue for ADI.

So basically at the midpoint of our outlook, we're expecting industrial to be up high single digits, communications to lead the growth, obviously led by data center up about 10%, consumer up high single digits, and automotive to be up low single digits.

My sense is that we'll see an extended runway to at least 2030 for strong double-digit growth across the data center market, as well as the energy space, by the way, which today is about a $0.5 billion revenue for ADI.

So basically at the midpoint of our outlook, we're expecting industrial to be up high single digits, communications to lead the growth, obviously led by data center up about 10%, consumer up high single digits, and automotive to be up low single digits.

Based on current design wins and customer commitments, our OCS revenue is poised to approximately double this year, and we're targeting a similar level of growth in 2027.

Based on current design wins and customer commitments, our OCS revenue is poised to approximately double this year, and we're targeting a similar level of growth in 2027.

Well, we are well on track. We will generate about $700 million this year.

I expect that we will hit $1 billion+ in 2027 as well.

| Tax rate | 12% - 14% | 12% - 14% (2) |

We are planning for reported EPS to be $3.14, +/-$0.15, and adjusted EPS to be $3.86, +/-$0.15.

At the midpoint of this revenue outlook, we expect reported operating margin of approximately 42.6%, +/-150 bps, and adjusted operating margin of approximately 52.0%, +/-100 bps.

| Nonoperating expense | ~$80 Million | ~$80 Million |

Our tax rate is expected to be 12%-14%, and based on these inputs, adjusted EPS is expected to be $3.30, ±$0.15.

Our tax rate is expected to be 12%-14%, and based on these inputs, adjusted EPS is expected to be $3.30, ±$0.15.

For Q3, we are assuming about a 50 basis points decline in gross margin, largely driven by the absence of that one-time benefit we got from repricing the channel during the prior quarter, obviously.

Operating margin at the midpoint is expected to be 49%, ±100 basis points.

Now, moving on to our third quarter outlook. Revenue is expected to be $3.9 billion, ±$100 million.

From an industrial and automotive perspective, we'd expect to grow sort of mid to high single digits sequentially.

From a comms perspective, we expect to be our fastest grower, up low to mid-teens sequentially.

Consumer is expected to be down single digits sequentially for us, based on some of the things I just described.

From an industrial and automotive perspective, we'd expect to grow sort of mid to high single digits sequentially.

But I would just remind you from a seasonality perspective, the fourth quarter for us is usually up in the low single digits.

| Tax rate | 12% - 14% | 12% - 14% (2) |

We are planning for reported EPS to be $2.60, +/-$0.15, and adjusted EPS to be $3.30, +/-$0.15.

At the midpoint of this revenue outlook, we expect reported operating margin of approximately 39.0%, +/-150 bps, and adjusted operating margin of approximately 49.0%, +/-100 bps.

Our tax rate is expected to be between 11% and 13%, and based on these inputs, adjusted EPS is expected to be $2.88, ±$0.15.

Our tax rate is expected to be between 11% and 13%, and based on these inputs, adjusted EPS is expected to be $2.88, ±$0.15.

And in our Q2 outlook, we're assuming 100 basis points of gross margin expansion or up essentially 150 basis points versus Q1, because that excludes the discrete items that I mentioned in my prepared remarks.

And, you know, for the full year, we continue to expect OpEx growth to trail revenue growth, growth by roughly half.

You know, in Q2, I see OpEx growing in the mid-single-digit range.

Operating margin at the midpoint is expected to be 47.5%, ±100 basis points.

Now moving on to our second quarter outlook. Revenue is expected to be $3.5 billion, ±$100 million.

And embedded in our outlook for industrial is, as we said, to lead our growth sequentially up 20%+, and we expect all of our segments to increase, led by ATE, which is growing greater than 30% sequentially.

That therefore, we're pretty confident that once we get past the headwinds in the first half, our second half will be stronger, and I actually believe that auto will grow in fiscal 2026 versus what was a record fiscal 2025.

You know, from an auto perspective, we do expect that to be flat to down sequentially, a bit below seasonal, and this is, as we've talked about, largely due to the tariff and macro, pull-in unwind that we've been talking about since the second and third quarters of last year.

You know, we expect comms to be up high-single digits sequentially, excuse me, above seasonal and about 60% year-over-year.

And then consumer in Q2, we expect to be down mid-single digits in line with seasonality.

You know, by end market, as we look out for Q2, what we expect to see is industrial continuing strong, up 20% sequentially, and well above seasonal at 50% year-over-year.

| Tax rate | 11% - 13% | 11% - 13% (2) |

We are planning for reported EPS to be $2.19, +/-$0.15, and adjusted EPS to be $2.88, +/-$0.15.

At the midpoint of this revenue outlook, we expect reported operating margin of approximately 36.4%, +/-150 bps, and adjusted operating margin of approximately 47.5%, +/-100 bps.

Our tax rate is expected to be 12%-14%, and based on these inputs, adjusted EPS is expected to be $2.29,± $0.10.

Our tax rate is expected to be 12%-14%, and based on these inputs, adjusted EPS is expected to be $2.29,± $0.10.

Operating margin at the midpoint is expected to be 43.5%, ±100 basis points.

Revenue is expected to be $3.1 billion±, $100 million.

We expect auto to be down mid-single digits below seasonal, where we continue to see some risk there around tariff and some of the macro environment.

Coms, we expect to be up 10% above seasonal.

Consumer seasonally down low double digits.

From an end market color perspective, industrial, we expect to be up mid-single digits above seasonal.

| Tax rate | 12% - 14% | 12% - 14% (2) |

We are planning for reported EPS to be $1.60, +/- $0.10, and adjusted EPS to be $2.29, +/- $0.10.

At the midpoint of this revenue outlook, we expect reported operating margin of approximately 31.0%, +/- 130 bps, and adjusted operating margin of approximately 43.5%, +/- 100 bps.