How does Analog Devices (ADI) make money?

Analog Devices (ADI) generates revenue primarily from Industrial, which accounted for 45.2% of total revenue in TTM through Q2 2026. The company reported $12.7B in revenue and converted 26% of it into net profit, equivalent to roughly $3.31B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Analog Devices (ADI)?

Analog Devices (ADI) reported a gross profit margin of 64.5% in TTM through Q2 2026, equivalent to $8.22B in gross profit on $12.7B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Analog Devices (ADI)?

Analog Devices (ADI) reported an operating profit margin of 32.5% in TTM through Q2 2026, equivalent to $4.14B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Analog Devices (ADI)?

Analog Devices (ADI) reported a net profit margin of 26% in TTM through Q2 2026, equivalent to $3.31B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Analog Devices (ADI) profitable?

Yes. Analog Devices (ADI) reported $3.31B in net income for TTM through Q2 2026, with a net profit margin of 26%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Analog Devices (ADI) invest in research and development?

Analog Devices (ADI) invested $1.9B in research and development during TTM through Q2 2026, roughly 14.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Analog Devices (ADI) spend on capital expenditures?

Analog Devices (ADI) spent $541M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 4.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Analog Devices (ADI) generate?

Analog Devices (ADI) generated $4.57B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 35.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Analog Devices (ADI)?

Analog Devices (ADI) had an effective tax rate of 15.5% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Analog Devices (ADI)?

Analog Devices (ADI) reports revenue across 4 reportable product segments, led by Industrial at 45.2% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Analog Devices Makes Money: 2026 Visual Revenue Map

Analog Devices (ADI) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending May 2, 2026 (reported May 20, 2026).

Analog Devices discloses geographic revenue only in annual filings. to view the full breakdown.

Analog Devices (ADI) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Analog Devices (ADI), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Industrial	$5.76B	45.2%
Automotive	$3.63B	28.5%
Consumer	$1.7B	13.3%
Communications	$1.65B	13%
Total	$12.7B	100%

Industrial$5.76B
Automotive$3.63B
Consumer$1.7B
Communications$1.65B
Total$12.7B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Analog Devices (ADI) reports revenue across 4 reportable product segments; the largest segment was Industrial at 45.2%, followed by Automotive (28.5%) and Consumer (13.3%).

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