⚠ Buying Back at Forty-Seven Times EarningsModerate threat

Analog Devices (ADI) — threat to the moat

ADI spent $2.4 billion buying back one percent of itself in nine months at close to 47 times earnings, because its policy returns all free cash whatever the price.

A buyback at a high price transfers value from the shareholders who stay to those who sell. ADI spent $2,446.4 million on its own shares in the first nine months of fiscal 20261, more than in any full year except fiscal 2021 to 20232. The shares stood at $395.43 on 28 September 20263, near a 52-week high of $445.914.

Analog Devices shares outstanding (millions)496.32 Nov 2024489.71 Nov 2025484.61 Aug 2026Analog Devices Q3 FY2026 results release and Form 10-K FY2025, cover and balance sheet
About one percent fewer shares in nine months.

At that price the trailing price-to-earnings ratio is 46.965. On year-end market values over reported earnings, the multiple was about 24.8 in fiscal 2015, 21.1 in 2018, 29.7 in 2023 and 58.6 in 20256. The recent readings are high partly because amortisation depresses reported earnings, but even on free cash flow the multiple is 38.817.

Share count shows the effect. Shares outstanding fell from 489,654,097 at the end of fiscal 2025 to 484,565,465 at 1 August 20268, about 1.0%9. Roughly $2.4 billion bought about one percent of the company.

The company's policy is to return 100% of free cash flow10, and buybacks are the balancing item. That makes them mechanical rather than opportunistic: the money goes back whatever the price.

This would matter less if ADI bought more when the shares were cheap and less when they were dear. In fiscal 2024, after a year-end value of $98.54 billion11, it cut buybacks to $615.6 million12. If repurchases in fiscal 2026 exceed $3 billion at an average multiple above 40 times trailing earnings, the policy will be buying high and pausing low.

References
  1. ReportedADI spent $2,446.4 million on its own shares in the first nine months of fiscal 2026, more than in any full year except fiscal 2021 to 2023.
    Analog Devices third-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - revenue by end market, margins, EPS, cash flow, balance sheet and fourth-quarter guidance - highlights, income statement, adjusted measures and fourth-quarter guidance. — Q3 FY2026 · publ. 19 August 2026 · source ↗
  2. ReportedADI spent $2,446.4 million on its own shares in the first nine months of fiscal 2026, more than in any full year except fiscal 2021 to 2023.
    SEC EDGAR XBRL, Analog Devices PaymentsForRepurchaseOfCommonStock: buybacks 227.0 (FY2015), 370.1, 46.5, 226.0, 613.0, 244.5, 2,605.1, 2,577.0, 2,964.0, 615.6, 2,164.6 (FY2025), $ millions. — FY2015-FY2025 · publ. 2025 · source ↗
  3. Third-party estimateThe shares stood at $395.43 on 28 September 2026, near a 52-week high of $445.91.
    stockanalysis.com, Analog Devices quote page, close of 28 September 2026: price $395.43, market value $191.61bn, dividend $4.40 (1.11%), 52-week range $223.47-$445.91, 34 analysts, average target $470.72. — September 2026 · publ. 28 September 2026 · source ↗
  4. Third-party estimateThe shares stood at $395.43 on 28 September 2026, near a 52-week high of $445.91.
    stockanalysis.com, Analog Devices quote page, close of 28 September 2026: price $395.43, market value $191.61bn, dividend $4.40 (1.11%), 52-week range $223.47-$445.91, 34 analysts, average target $470.72. — September 2026 · publ. 28 September 2026 · source ↗
  5. Third-party estimateAt that price the trailing price-to-earnings ratio is 46.96.
    stockanalysis.com, Analog Devices statistics, 28 September 2026: 484.57 million shares, trailing P/E 46.96, forward P/E 24.84, P/S 13.80, P/B 5.71, P/FCF 38.81, return on invested capital 10.96% (its own trailing method), institutions 92.63%. — September 2026 · publ. 28 September 2026 · source ↗
  6. Moat Explorer calcOn year-end market values over reported earnings, the multiple was about 24.8 in fiscal 2015, 21.1 in 2018, 29.7 in 2023 and 58.6 in 2025.
    Moat Explorer calculation from Analog Devices reported figures ($ millions unless stated; fiscal years ending late October or early November). Revenue growth: FY2025 11,019.7 / 9,427.2 - 1 = +16.9%; FY2024 9,427.2 / 12,305.5 - 1 = -23.4%; FY2023 12,305.5 / 12,014.0 - 1 = +2.4%; FY2022 12,014.0 / 7,318.3 - 1 = +64.2%; FY2021 7,318.3 / 5,603.1 - 1 = +30.6%; FY2020 5,603.1 / 5,991.1 - 1 = -6.5%; FY2019 5,991.1 / 6,224.7 - 1 = -3.8%; FY2024 revenue fall 12,305.5 - 9,427.2 = 2,878.3, about $2.9bn; FY2026 implied 10,805.6 + 4,300 = 15,105.6, about $15.1bn, 15,105.6 / 11,019.7 - 1 = +37%, 15,105.6 / 12,305.5 - 1 = +23%; Q3 FY2026 quarterly revenue 4,021.9 / 3,076.1 - 1 = +30.7% on Q4 FY2025; 4,021.9 / 2,423.2 = 1.66 times Q1 FY2025. Operating income: FY2024 2,032.8 / 3,823.1 - 1 = -46.8%, a fall of 3,823.1 - 2,032.8 = 1,790.3, about $1.8bn. Gross profit FY2024 5,381.3 / 7,877.2 - 1 = -31.7%. Gross margin FY2015 2,259.3 / 3,435.1 = 65.8%; FY2016 2,227.2 / 3,421.4 = 65.1%; reported gross margin range FY2015-FY2025 57.1% (FY2024) to 68.3% (FY2018); Q3 FY2026 adjusted less reported 72.5 - 67.3 = 5.2 points. Acquisition-related expenses Q3 FY2026 209.2 (cost of sales) + 188.6 (operating expenses) = 397.8; nine months FY2026 619.4 + 565.1 = 1,184.5. People: revenue per employee FY2021 7,318.3 / 24,700 = about $296,000; FY2022 12,014.0 / 24,450 = $491,000; FY2024 9,427.2 / 24,000 = $393,000; FY2025 11,019.7 / 24,500 = $450,000; engineers 13,000 / 24,500 = 53% (FY2025), 11,000 / 24,700 = 45% (FY2021); engineers added 13,000 - 11,000 = 2,000. R&D as a share of revenue: FY2015 637.5 / 3,435.1 = 18.6%; FY2016 653.8 / 3,421.4 = 19.1%; FY2017 968.1 / 5,246.4 = 18.5%; FY2018 1,165.0 / 6,224.7 = 18.7%; FY2019 1,130.3 / 5,991.1 = 18.9%; FY2020 1,050.5 / 5,603.1 = 18.7%; FY2021 1,296.1 / 7,318.3 = 17.7%; FY2022 1,700.5 / 12,014.0 = 14.2%; FY2023 1,660.2 / 12,305.5 = 13.5%; FY2024 1,487.9 / 9,427.2 = 15.8%; FY2025 1,766.0 / 11,019.7 = 16.0%; Q3 FY2026 533.5 / 4,021.9 = 13.3%; R&D FY2024 1,487.9 / 1,700.5 - 1 = -12.5%. End markets: FY2024 over FY2023 Industrial 4,290.3 / 6,565.4 - 1 = -34.7%; Communications 1,091.4 / 1,591.6 - 1 = -31.4%; Automotive 2,837.5 / 2,904.0 - 1 = -2.3%; Consumer 1,207.9 / 1,244.6 - 1 = -3.0%. FY2025 over FY2024 Industrial 4,929.4 / 4,290.3 - 1 = +14.9%; Automotive 3,277.9 / 2,837.5 - 1 = +15.5%; Communications 1,377.9 / 1,091.4 - 1 = +26.2%; Consumer 1,434.6 / 1,207.9 - 1 = +18.8%. FY2017 to FY2025: Industrial 4,929.4 / 2,324.7 = 2.12 times, 9.9% a year; Automotive 3,277.9 / 758.1 = 4.3 times, 20.1% a year; Communications 1,377.9 / 908.6 = 1.52 times, 5.3% a year; Consumer 1,434.6 / 1,255.0 = 1.14 times, 1.7% a year. Consumer share 1,255.0 / 5,246.4 = 23.9% (FY2017), 933.8 / 6,224.7 = 15.0%, 752.3 / 5,991.1 = 12.6%, 624.9 / 5,603.1 = 11.2%, 1,519.9 / 12,014.0 = 12.7%, 1,244.6 / 12,305.5 = 10.1%, 1,434.6 / 11,019.7 = 13.0% (FY2025), Q3 FY2026 397.2 / 4,021.9 = 9.9%. Automotive share 3,277.9 / 11,019.7 = 29.7% (FY2025), Q3 FY2025 857.1 / 2,880.3 = 29.8%, Q3 FY2026 998.2 / 4,021.9 = 24.8%. Communications share Q3 FY2025 354.8 / 2,880.3 = 12.3%, Q3 FY2026 654.5 / 4,021.9 = 16.3%. Industrial plus Communications (4,929.4 + 1,377.9) / 11,019.7 = 57.2% (FY2025); Q3 FY2026 (1,971.9 + 654.5 = 2,626.4) / 4,021.9 = 65.3%. Trailing twelve months to August 2026 (Q4 FY2025 + Q1 + Q2 + Q3 FY2026): Industrial 1,426.5 + 1,489.3 + 1,799.4 + 1,971.9 = 6,687.1; Automotive 852.2 + 794.4 + 871.6 + 998.2 = 3,516.4; Communications 389.8 + 476.8 + 554.7 + 654.5 = 2,075.8; Consumer 407.5 + 399.8 + 397.8 + 397.2 = 1,602.3. Distributor revenue Q3 FY2026 2,327.1 / 1,592.4 - 1 = +46.1%. Geography: China share of revenue 898.6 / 5,246.4 = 17.1% (FY2017); 1,215.9 / 6,224.7 = 19.5%; 1,316.3 / 5,991.1 = 22.0%; 1,348.0 / 5,603.1 = 24.1%; 1,614.4 / 7,318.3 = 22.1%; 2,563.5 / 12,014.0 = 21.3%; 2,229.6 / 12,305.5 = 18.1%; 2,128.8 / 9,427.2 = 22.6%; 2,858.3 / 11,019.7 = 25.9% (FY2025); China growth 2,858.3 / 2,128.8 - 1 = +34.3%; United States growth 3,238.1 / 2,840.4 - 1 = +14.0%; China over United States 2,858.3 / 3,238.1 = 88%; United States share 3,238.1 / 11,019.7 = 29.4% (FY2025), 4,165.3 / 12,305.5 = 33.8% (FY2023). Customers: distributors at 10% or more FY2024 24% + 12% + 12% = 48%; FY2025 24% + 13% = 37% (a second distributor below 10%). Acquisitions and balance sheet: Linear price 15.8bn / FY2016 revenue 3.42bn = 4.6 times; goodwill FY2017 12,217.5 / FY2016 1,679.1 = 7.3 times; goodwill 1 August 2026 27,988.7 / FY2015 1,636.5 = 17.1 times; Maxim goodwill added 26,918.5 - 12,278.4 = 14,640.1, about $14.6bn; Linear plus Maxim 15.8 + 28.0 = 43.8, about $44bn; goodwill and intangibles (26,945.2 + 8,013.8) / 47,992.7 = 72.8% (1 November 2025); (27,988.7 + 7,468.2 = 35,456.9) / 48,424.4 = 73.2% (1 August 2026); other assets 47,992.7 - 26,945.2 - 8,013.8 = 13,033.7; market value over equity 191.61bn / 33.55bn = 5.7 times; over goodwill 191.61 / 27.99 = 6.8 times; amortisation fall FY2026 to FY2030 1,537.5 - 404.2 = 1,133.3; Empower plus Alif 1.5 + 1.35 + 0.2 = 3.05bn; Empower 1.5 / total assets 48.4 = 3%. Cash: free cash flow = operating cash flow less capital expenditure: FY2015 907.8 - 154.0 = 753.8 (21.9% of revenue); FY2016 1,291.3 - 127.4 = 1,163.9 (34.0%); FY2017 1,154.4 - 204.1 = 950.3 (18.1%); FY2018 2,442.4 - 254.9 = 2,187.5 (35.1%); FY2019 2,253.1 - 275.4 = 1,977.7 (33.0%); FY2020 2,008.5 - 165.7 = 1,842.8 (32.9%); FY2021 2,735.1 - 343.7 = 2,391.4 (32.7%); FY2022 4,475.4 - 699.3 = 3,776.1 (31.4%); FY2023 4,817.6 - 1,261.5 = 3,556.1 (28.9%); FY2024 3,852.5 - 730.5 = 3,122.0 (33.1%); FY2025 4,278.6 / 11,019.7 = 38.8%; TTM August 2026 4,937.5 / 13,881.5 = 36%. Capital expenditure as a share of revenue: FY2015 4.5%, FY2016 3.7%, FY2017 3.9%, FY2018 4.1%, FY2019 4.6%, FY2020 3.0%, FY2021 4.7%, FY2022 699.3 / 12,014.0 = 5.8%, FY2023 1,261.5 / 12,305.5 = 10.3%, FY2024 730.5 / 9,427.2 = 7.7%, FY2025 533.6 / 11,019.7 = 4.8%, TTM 607.8 / 13,881.5 = 4.4%; FY2025 over FY2023 533.6 / 1,261.5 = 42%. Cash returned over free cash flow: FY2021 (1,109.3 dividends + 2,605.1 buybacks) / 2,391.4 = 155%; FY2022 (1,544.6 + 2,577.0) / 3,776.1 = 109%; FY2023 (1,679.1 + 2,964.0) / 3,556.1 = 131%; FY2024 (1,795.5 + 615.6) / 3,122.0 = 77%; FY2025 (1,924.4 + 2,164.6) / 4,278.6 = 96%; TTM 5,170 / 4,937.5 = 105%. Buybacks FY2024 615.6 / FY2023 2,964.0 = 21%, a fall of 79%; FY2021-FY2025 2,605.1 + 2,577.0 + 2,964.0 + 615.6 + 2,164.6 = 10,926.3, about $11bn. Dividends per share over diluted EPS: FY2015 1.57 / 2.20 = 71%; FY2018 1.89 / 4.00 = 47%; FY2020 2.40 / 3.28 = 73%; FY2022 2.97 / 5.25 = 57%; FY2023 3.34 / 6.55 = 51%; FY2024 3.62 / 3.28 = 110%; FY2025 3.89 / 4.56 = 85%. Dividend per share growth (3.89 / 1.57) ^ (1/10) - 1 = 9.5% a year. Shares outstanding 484,565,465 / 496,296,854 - 1 = -2.4%; 484,565,465 / 489,654,097 - 1 = -1.0%. Debt: net debt 1 November 2025 = long-term debt 8,145.1 + commercial paper 446.6 - cash 2,499.4 - short-term investments 1,152.9 = 4,939.4; 1 August 2026 = 6,771.6 + 1,344.9 + 1,005.1 - 2,165.9 - 159.1 = 6,796.6; net debt over trailing free cash flow 6,796.6 / 4,937.5 = 1.4 times; cash and short-term investments 2,499.4 + 1,152.9 = 3,652.3 (FY2025 end) and 2,165.9 + 159.1 = 2,324.9 (1 August 2026); commercial paper 1,005.1 / 446.6 = 2.25 times. Working capital: receivables 2,389.6 / 1,436.1 - 1 = +66.4%; inventories 1,931.5 / 1,656.3 - 1 = +16.6%. Earnings and valuation: trailing net income to August 2026 = FY2025 2,267.3 - nine months FY2025 1,479.6 + nine months FY2026 3,347.3 = 4,135.0; market value 191.61bn / 4,135.0 = 46.3 times; FY2026 EPS build reported 6.83 + 3.14 = 9.97, adjusted 8.99 + 3.86 = 12.85; Q4 adjusted EPS guide low end 3.86 - 0.15 = 3.71. Year-end market value over fiscal-year net income: 17.26bn / 696.9 = 24.8 (FY2015); 32.82bn / 805.4 = 40.8 (FY2017); 31.77bn / 1,507.0 = 21.1 (FY2018); 54.58bn / 1,220.8 = 44.7 (FY2020); 92.34bn / 1,390.4 = 66.4 (FY2021); 83.54bn / 2,748.6 = 30.4 (FY2022); 98.54bn / 3,314.6 = 29.7 (FY2023); 105.44bn / 1,635.3 = 64.5 (FY2024); 132.79bn / 2,267.3 = 58.6 (FY2025). Additional: Q3 FY2025 shares of revenue Industrial 1,293.0 / 2,880.3 = 44.9%, Consumer 375.4 / 2,880.3 = 13.0%; Q3 FY2026 Industrial 1,971.9 / 4,021.9 = 49.0%; Industrial share Q1 FY2025 1,080.7 / 2,423.2 = 44.6%; Industrial Q3 FY2026 over Q1 FY2025 1,971.9 / 1,080.7 = 1.82 times, about 82% higher. Consumer growth Q1 FY2026 399.8 / 314.7 - 1 = +27%; Q2 FY2026 397.8 / 323.1 - 1 = +23%. Return on equity FY2025 2,267.3 / average (35,176.3 + 33,815.8) / 2 = 6.6%; FY2024 1,635.3 / average (35,565.1 + 35,176.3) / 2 = 4.6%. Customer relationships net of amortisation 10,335.9 - 5,311.2 = 5,024.7. Dividends paid 1,924.4 / 491.1 = 3.9 times. Regions FY2025 against FY2023: Japan 989.9 / 1,397.1 - 1 = -29.1%; Europe 2,285.6 / 3,001.9 - 1 = -23.9%; China 2,858.3 / 2,229.6 - 1 = +28.2%; rest of Asia 1,485.3 against 1,423.0; United States 3,238.1 against 4,165.3. Share price 395.43 / 445.91 - 1 = -11.3% from the 52-week high; 445.91 / 223.47 = 2.0 times; price-to-sales end FY2022 83.54bn / 12,014.0 = 7.0; trailing Communications 2,075.8 against FY2022 1,855.3. Competitors: Texas Instruments 2025 free cash flow 2,938 / revenue 17,682 = 16.6%; ADI 38.8% - 16.6% = 22.2 points; ADI revenue 11,019.7 / TI 17,682 = 62%; capital expenditure 4,550 / 533.6 = 8.5 times - end markets, channel and geography. — FY2015-Q3 FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Analog Devices Forms 10-K, 10-Q and results releases, SEC XBRL, and the Texas Instruments 2025 Form 10-K; each operand is stated in the source line.
  7. Third-party estimateThe recent readings are high partly because amortisation depresses reported earnings, but even on free cash flow the multiple is 38.81.
    stockanalysis.com, Analog Devices statistics, 28 September 2026: 484.57 million shares, trailing P/E 46.96, forward P/E 24.84, P/S 13.80, P/B 5.71, P/FCF 38.81, return on invested capital 10.96% (its own trailing method), institutions 92.63%. — September 2026 · publ. 28 September 2026 · source ↗
  8. ReportedShares outstanding fell from 489,654,097 at the end of fiscal 2025 to 484,565,465 at 1 August 2026, about 1.0%.
    Analog Devices third-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - revenue by end market, margins, EPS, cash flow, balance sheet and fourth-quarter guidance - highlights, income statement, adjusted measures and fourth-quarter guidance. — Q3 FY2026 · publ. 19 August 2026 · source ↗
  9. Moat Explorer calcShares outstanding fell from 489,654,097 at the end of fiscal 2025 to 484,565,465 at 1 August 2026, about 1.0%.
    Moat Explorer calculation from Analog Devices reported figures ($ millions unless stated; fiscal years ending late October or early November). Revenue growth: FY2025 11,019.7 / 9,427.2 - 1 = +16.9%; FY2024 9,427.2 / 12,305.5 - 1 = -23.4%; FY2023 12,305.5 / 12,014.0 - 1 = +2.4%; FY2022 12,014.0 / 7,318.3 - 1 = +64.2%; FY2021 7,318.3 / 5,603.1 - 1 = +30.6%; FY2020 5,603.1 / 5,991.1 - 1 = -6.5%; FY2019 5,991.1 / 6,224.7 - 1 = -3.8%; FY2024 revenue fall 12,305.5 - 9,427.2 = 2,878.3, about $2.9bn; FY2026 implied 10,805.6 + 4,300 = 15,105.6, about $15.1bn, 15,105.6 / 11,019.7 - 1 = +37%, 15,105.6 / 12,305.5 - 1 = +23%; Q3 FY2026 quarterly revenue 4,021.9 / 3,076.1 - 1 = +30.7% on Q4 FY2025; 4,021.9 / 2,423.2 = 1.66 times Q1 FY2025. Operating income: FY2024 2,032.8 / 3,823.1 - 1 = -46.8%, a fall of 3,823.1 - 2,032.8 = 1,790.3, about $1.8bn. Gross profit FY2024 5,381.3 / 7,877.2 - 1 = -31.7%. Gross margin FY2015 2,259.3 / 3,435.1 = 65.8%; FY2016 2,227.2 / 3,421.4 = 65.1%; reported gross margin range FY2015-FY2025 57.1% (FY2024) to 68.3% (FY2018); Q3 FY2026 adjusted less reported 72.5 - 67.3 = 5.2 points. Acquisition-related expenses Q3 FY2026 209.2 (cost of sales) + 188.6 (operating expenses) = 397.8; nine months FY2026 619.4 + 565.1 = 1,184.5. People: revenue per employee FY2021 7,318.3 / 24,700 = about $296,000; FY2022 12,014.0 / 24,450 = $491,000; FY2024 9,427.2 / 24,000 = $393,000; FY2025 11,019.7 / 24,500 = $450,000; engineers 13,000 / 24,500 = 53% (FY2025), 11,000 / 24,700 = 45% (FY2021); engineers added 13,000 - 11,000 = 2,000. R&D as a share of revenue: FY2015 637.5 / 3,435.1 = 18.6%; FY2016 653.8 / 3,421.4 = 19.1%; FY2017 968.1 / 5,246.4 = 18.5%; FY2018 1,165.0 / 6,224.7 = 18.7%; FY2019 1,130.3 / 5,991.1 = 18.9%; FY2020 1,050.5 / 5,603.1 = 18.7%; FY2021 1,296.1 / 7,318.3 = 17.7%; FY2022 1,700.5 / 12,014.0 = 14.2%; FY2023 1,660.2 / 12,305.5 = 13.5%; FY2024 1,487.9 / 9,427.2 = 15.8%; FY2025 1,766.0 / 11,019.7 = 16.0%; Q3 FY2026 533.5 / 4,021.9 = 13.3%; R&D FY2024 1,487.9 / 1,700.5 - 1 = -12.5%. End markets: FY2024 over FY2023 Industrial 4,290.3 / 6,565.4 - 1 = -34.7%; Communications 1,091.4 / 1,591.6 - 1 = -31.4%; Automotive 2,837.5 / 2,904.0 - 1 = -2.3%; Consumer 1,207.9 / 1,244.6 - 1 = -3.0%. FY2025 over FY2024 Industrial 4,929.4 / 4,290.3 - 1 = +14.9%; Automotive 3,277.9 / 2,837.5 - 1 = +15.5%; Communications 1,377.9 / 1,091.4 - 1 = +26.2%; Consumer 1,434.6 / 1,207.9 - 1 = +18.8%. FY2017 to FY2025: Industrial 4,929.4 / 2,324.7 = 2.12 times, 9.9% a year; Automotive 3,277.9 / 758.1 = 4.3 times, 20.1% a year; Communications 1,377.9 / 908.6 = 1.52 times, 5.3% a year; Consumer 1,434.6 / 1,255.0 = 1.14 times, 1.7% a year. Consumer share 1,255.0 / 5,246.4 = 23.9% (FY2017), 933.8 / 6,224.7 = 15.0%, 752.3 / 5,991.1 = 12.6%, 624.9 / 5,603.1 = 11.2%, 1,519.9 / 12,014.0 = 12.7%, 1,244.6 / 12,305.5 = 10.1%, 1,434.6 / 11,019.7 = 13.0% (FY2025), Q3 FY2026 397.2 / 4,021.9 = 9.9%. Automotive share 3,277.9 / 11,019.7 = 29.7% (FY2025), Q3 FY2025 857.1 / 2,880.3 = 29.8%, Q3 FY2026 998.2 / 4,021.9 = 24.8%. Communications share Q3 FY2025 354.8 / 2,880.3 = 12.3%, Q3 FY2026 654.5 / 4,021.9 = 16.3%. Industrial plus Communications (4,929.4 + 1,377.9) / 11,019.7 = 57.2% (FY2025); Q3 FY2026 (1,971.9 + 654.5 = 2,626.4) / 4,021.9 = 65.3%. Trailing twelve months to August 2026 (Q4 FY2025 + Q1 + Q2 + Q3 FY2026): Industrial 1,426.5 + 1,489.3 + 1,799.4 + 1,971.9 = 6,687.1; Automotive 852.2 + 794.4 + 871.6 + 998.2 = 3,516.4; Communications 389.8 + 476.8 + 554.7 + 654.5 = 2,075.8; Consumer 407.5 + 399.8 + 397.8 + 397.2 = 1,602.3. Distributor revenue Q3 FY2026 2,327.1 / 1,592.4 - 1 = +46.1%. Geography: China share of revenue 898.6 / 5,246.4 = 17.1% (FY2017); 1,215.9 / 6,224.7 = 19.5%; 1,316.3 / 5,991.1 = 22.0%; 1,348.0 / 5,603.1 = 24.1%; 1,614.4 / 7,318.3 = 22.1%; 2,563.5 / 12,014.0 = 21.3%; 2,229.6 / 12,305.5 = 18.1%; 2,128.8 / 9,427.2 = 22.6%; 2,858.3 / 11,019.7 = 25.9% (FY2025); China growth 2,858.3 / 2,128.8 - 1 = +34.3%; United States growth 3,238.1 / 2,840.4 - 1 = +14.0%; China over United States 2,858.3 / 3,238.1 = 88%; United States share 3,238.1 / 11,019.7 = 29.4% (FY2025), 4,165.3 / 12,305.5 = 33.8% (FY2023). Customers: distributors at 10% or more FY2024 24% + 12% + 12% = 48%; FY2025 24% + 13% = 37% (a second distributor below 10%). Acquisitions and balance sheet: Linear price 15.8bn / FY2016 revenue 3.42bn = 4.6 times; goodwill FY2017 12,217.5 / FY2016 1,679.1 = 7.3 times; goodwill 1 August 2026 27,988.7 / FY2015 1,636.5 = 17.1 times; Maxim goodwill added 26,918.5 - 12,278.4 = 14,640.1, about $14.6bn; Linear plus Maxim 15.8 + 28.0 = 43.8, about $44bn; goodwill and intangibles (26,945.2 + 8,013.8) / 47,992.7 = 72.8% (1 November 2025); (27,988.7 + 7,468.2 = 35,456.9) / 48,424.4 = 73.2% (1 August 2026); other assets 47,992.7 - 26,945.2 - 8,013.8 = 13,033.7; market value over equity 191.61bn / 33.55bn = 5.7 times; over goodwill 191.61 / 27.99 = 6.8 times; amortisation fall FY2026 to FY2030 1,537.5 - 404.2 = 1,133.3; Empower plus Alif 1.5 + 1.35 + 0.2 = 3.05bn; Empower 1.5 / total assets 48.4 = 3%. Cash: free cash flow = operating cash flow less capital expenditure: FY2015 907.8 - 154.0 = 753.8 (21.9% of revenue); FY2016 1,291.3 - 127.4 = 1,163.9 (34.0%); FY2017 1,154.4 - 204.1 = 950.3 (18.1%); FY2018 2,442.4 - 254.9 = 2,187.5 (35.1%); FY2019 2,253.1 - 275.4 = 1,977.7 (33.0%); FY2020 2,008.5 - 165.7 = 1,842.8 (32.9%); FY2021 2,735.1 - 343.7 = 2,391.4 (32.7%); FY2022 4,475.4 - 699.3 = 3,776.1 (31.4%); FY2023 4,817.6 - 1,261.5 = 3,556.1 (28.9%); FY2024 3,852.5 - 730.5 = 3,122.0 (33.1%); FY2025 4,278.6 / 11,019.7 = 38.8%; TTM August 2026 4,937.5 / 13,881.5 = 36%. Capital expenditure as a share of revenue: FY2015 4.5%, FY2016 3.7%, FY2017 3.9%, FY2018 4.1%, FY2019 4.6%, FY2020 3.0%, FY2021 4.7%, FY2022 699.3 / 12,014.0 = 5.8%, FY2023 1,261.5 / 12,305.5 = 10.3%, FY2024 730.5 / 9,427.2 = 7.7%, FY2025 533.6 / 11,019.7 = 4.8%, TTM 607.8 / 13,881.5 = 4.4%; FY2025 over FY2023 533.6 / 1,261.5 = 42%. Cash returned over free cash flow: FY2021 (1,109.3 dividends + 2,605.1 buybacks) / 2,391.4 = 155%; FY2022 (1,544.6 + 2,577.0) / 3,776.1 = 109%; FY2023 (1,679.1 + 2,964.0) / 3,556.1 = 131%; FY2024 (1,795.5 + 615.6) / 3,122.0 = 77%; FY2025 (1,924.4 + 2,164.6) / 4,278.6 = 96%; TTM 5,170 / 4,937.5 = 105%. Buybacks FY2024 615.6 / FY2023 2,964.0 = 21%, a fall of 79%; FY2021-FY2025 2,605.1 + 2,577.0 + 2,964.0 + 615.6 + 2,164.6 = 10,926.3, about $11bn. Dividends per share over diluted EPS: FY2015 1.57 / 2.20 = 71%; FY2018 1.89 / 4.00 = 47%; FY2020 2.40 / 3.28 = 73%; FY2022 2.97 / 5.25 = 57%; FY2023 3.34 / 6.55 = 51%; FY2024 3.62 / 3.28 = 110%; FY2025 3.89 / 4.56 = 85%. Dividend per share growth (3.89 / 1.57) ^ (1/10) - 1 = 9.5% a year. Shares outstanding 484,565,465 / 496,296,854 - 1 = -2.4%; 484,565,465 / 489,654,097 - 1 = -1.0%. Debt: net debt 1 November 2025 = long-term debt 8,145.1 + commercial paper 446.6 - cash 2,499.4 - short-term investments 1,152.9 = 4,939.4; 1 August 2026 = 6,771.6 + 1,344.9 + 1,005.1 - 2,165.9 - 159.1 = 6,796.6; net debt over trailing free cash flow 6,796.6 / 4,937.5 = 1.4 times; cash and short-term investments 2,499.4 + 1,152.9 = 3,652.3 (FY2025 end) and 2,165.9 + 159.1 = 2,324.9 (1 August 2026); commercial paper 1,005.1 / 446.6 = 2.25 times. Working capital: receivables 2,389.6 / 1,436.1 - 1 = +66.4%; inventories 1,931.5 / 1,656.3 - 1 = +16.6%. Earnings and valuation: trailing net income to August 2026 = FY2025 2,267.3 - nine months FY2025 1,479.6 + nine months FY2026 3,347.3 = 4,135.0; market value 191.61bn / 4,135.0 = 46.3 times; FY2026 EPS build reported 6.83 + 3.14 = 9.97, adjusted 8.99 + 3.86 = 12.85; Q4 adjusted EPS guide low end 3.86 - 0.15 = 3.71. Year-end market value over fiscal-year net income: 17.26bn / 696.9 = 24.8 (FY2015); 32.82bn / 805.4 = 40.8 (FY2017); 31.77bn / 1,507.0 = 21.1 (FY2018); 54.58bn / 1,220.8 = 44.7 (FY2020); 92.34bn / 1,390.4 = 66.4 (FY2021); 83.54bn / 2,748.6 = 30.4 (FY2022); 98.54bn / 3,314.6 = 29.7 (FY2023); 105.44bn / 1,635.3 = 64.5 (FY2024); 132.79bn / 2,267.3 = 58.6 (FY2025). Additional: Q3 FY2025 shares of revenue Industrial 1,293.0 / 2,880.3 = 44.9%, Consumer 375.4 / 2,880.3 = 13.0%; Q3 FY2026 Industrial 1,971.9 / 4,021.9 = 49.0%; Industrial share Q1 FY2025 1,080.7 / 2,423.2 = 44.6%; Industrial Q3 FY2026 over Q1 FY2025 1,971.9 / 1,080.7 = 1.82 times, about 82% higher. Consumer growth Q1 FY2026 399.8 / 314.7 - 1 = +27%; Q2 FY2026 397.8 / 323.1 - 1 = +23%. Return on equity FY2025 2,267.3 / average (35,176.3 + 33,815.8) / 2 = 6.6%; FY2024 1,635.3 / average (35,565.1 + 35,176.3) / 2 = 4.6%. Customer relationships net of amortisation 10,335.9 - 5,311.2 = 5,024.7. Dividends paid 1,924.4 / 491.1 = 3.9 times. Regions FY2025 against FY2023: Japan 989.9 / 1,397.1 - 1 = -29.1%; Europe 2,285.6 / 3,001.9 - 1 = -23.9%; China 2,858.3 / 2,229.6 - 1 = +28.2%; rest of Asia 1,485.3 against 1,423.0; United States 3,238.1 against 4,165.3. Share price 395.43 / 445.91 - 1 = -11.3% from the 52-week high; 445.91 / 223.47 = 2.0 times; price-to-sales end FY2022 83.54bn / 12,014.0 = 7.0; trailing Communications 2,075.8 against FY2022 1,855.3. Competitors: Texas Instruments 2025 free cash flow 2,938 / revenue 17,682 = 16.6%; ADI 38.8% - 16.6% = 22.2 points; ADI revenue 11,019.7 / TI 17,682 = 62%; capital expenditure 4,550 / 533.6 = 8.5 times - free cash flow, capital returns, debt and working capital. — FY2015-Q3 FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Analog Devices Forms 10-K, 10-Q and results releases, SEC XBRL, and the Texas Instruments 2025 Form 10-K; each operand is stated in the source line.
  10. ReportedThe company's policy is to return 100% of free cash flow, and buybacks are the balancing item.
    Analog Devices release of 17 February 2026, Form 8-K exhibit 99.2 - quarterly dividend raised 11% to $1.10, 22 consecutive years of higher dividends, 29 years of positive free cash flow, more than $32 billion returned. — February 2026 · publ. 17 February 2026 · source ↗
  11. Third-party estimateIn fiscal 2024, after a year-end value of $98.54 billion, it cut buybacks to $615.6 million.
    stockanalysis.com, Analog Devices market-cap history: year-end market values 17.26 (2015), 22.38, 32.82, 31.77, 43.77, 54.58, 92.34, 83.54, 98.54, 105.44, 132.79 (2025), $ billions; up 57.33% in one year. — 2015-2026 · publ. 28 September 2026 · source ↗
  12. ReportedIn fiscal 2024, after a year-end value of $98.54 billion, it cut buybacks to $615.6 million.
    SEC EDGAR XBRL, Analog Devices PaymentsForRepurchaseOfCommonStock: buybacks 227.0 (FY2015), 370.1, 46.5, 226.0, 613.0, 244.5, 2,605.1, 2,577.0, 2,964.0, 615.6, 2,164.6 (FY2025), $ millions. — FY2015-FY2025 · publ. 2025 · source ↗
Sources
Generated September 29, 2026