Analog Devices, Inc. stock research
FY2026 Q2
Analog Devices (ADI) Gross Margin — Quarter Ended May 2, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended May 2, 2026 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
- The gross margin improved sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue growth. The strongest observable driver is the expansion of gross margin, which reached a higher level than both comparison periods.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, all metrics were higher, with gross margin showing the most notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.3%
Gross profit
$2.4B
Revenue
$3.6B
Cost of revenue
$1.2B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+6.3 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 |
|---|---|---|---|---|
| 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% |
| May 2, 2026 | $3.6B | $2.4B | $1.2B | 67.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2026
+2.6 pts
Year-over-year change
May 3, 2025
+6.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue growth. The strongest observable driver is the expansion of gross margin, which reached a higher level than both comparison periods.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, all metrics were higher, with gross margin showing the most notable improvement.
Monitor the trajectory of gross margin in upcoming quarters to assess whether the current level can be sustained or further improved.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Analog Devices, Inc. (ADI) | 67.3% |