Analog Devices, Inc. stock research
FY2026 Q1
Analog Devices (ADI) Gross Margin — Quarter Ended Jan 31, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially and higher year over year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue growth and gross profit expansion relative to cost of revenue.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially and higher year over year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue growth and gross profit expansion relative to cost of revenue.
- Gross margin improved sequentially and year over year, driven by revenue growing faster than cost of revenue in both comparisons. The strongest observable driver is the revenue increase, which outpaced the change in cost of revenue, leading to higher gross profit and margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.7%
Gross profit
$2.0B
Revenue
$3.2B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+5.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 3, 2025 | $2.6B | $1.6B | $1.0B | 61.0% |
| Aug 2, 2025 | $2.9B | $1.8B | $1.1B | 62.1% |
| Nov 1, 2025 | $3.1B | $1.9B | $1.1B | 63.1% |
| Jan 31, 2026 | $3.2B | $2.0B | $1.1B | 64.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 1, 2025
+1.6 pts
Year-over-year change
Feb 1, 2025
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year over year, driven by revenue growing faster than cost of revenue in both comparisons. The strongest observable driver is the revenue increase, which outpaced the change in cost of revenue, leading to higher gross profit and margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also improving.
Monitor the trajectory of cost of revenue relative to revenue, as its stability this quarter contrasted with the prior year increase.