Key Points
Analog Devices, Inc. (ADI) delivered a strong session, with shares advancing from a previous close of $239.40 to $252.02, gaining 5.27% and adding $12.62 in market value per share. The rally unfolded on heavy trading interest, with volume climbing to 7,506,999 shares versus a 90-day average of 3,525,885, underscoring broad participation and conviction behind the move. The price action positions ADI just 2% below its 52-week high of $258.13, signaling robust momentum and constructive sentiment among investors.
The tone of trading was decisively bullish, with buyers maintaining control throughout the day and showing a willingness to pay higher prices into strength. The market cap now stands at $117.77 billion, reflecting growing confidence in the company’s earnings power and strategic positioning. With the stock closing near session highs and within striking distance of its recent peak, the path of least resistance remains upward if positive catalysts continue to support fundamentals.
From a technical perspective, today’s follow-through reinforces an upward trajectory that has been building as investors reward operational execution and forward outlook. Participation far above average highlights renewed attention from both institutional and retail investors. Trading just shy of its 52-week high, ADI is exhibiting the type of steady accumulation associated with improving expectations. These are hallmark signs of favorable momentum, supported by improving business trends and strong buyer interest. If this enthusiasm persists, the setup leaves ADI well-positioned to potentially retest and challenge its prior high, with sentiment and liquidity currently aligned in its favor.
Why Analog Devices, Inc. Price is Moving Higher
ADI’s surge to $252.02 reflects a clear reaction to better-than-expected fundamentals and upbeat guidance. The company reported fiscal Q4 2025 results that beat consensus on both lines: adjusted EPS of $2.26 versus $2.23 expected and revenue of $3.08 billion versus $3.02 billion expected, up 26% from $2.44 billion a year ago. Growth was broad-based, with Industrial revenue up 34% year over year to $1.43 billion, Automotive up 19% to $852 million, and Communications up 37% to $389 million. Profitability improved as well, with gross margin expanding to 69.3% (up 140 basis points) and operating margin reaching 41.9% (up 100 basis points). Management also highlighted record free cash flow of $4.3 billion for the fiscal year, reinforcing financial strength and flexibility.
Forward outlook added to the positive tone. ADI guided first-quarter fiscal 2026 revenue to $3.00 billion–$3.20 billion, ahead of the $2.96 billion consensus, and projected adjusted EPS of $2.19–$2.39 versus $2.16 expected. The company cited robust demand across AI-related applications, automotive systems, and industrial markets as key drivers of the improved trajectory. This combination of better results and raised guidance typically supports higher valuations as investors discount stronger future cash flows and resilience in core end markets.
Trading dynamics confirm the enthusiasm. Volume swelled to 7,506,999, well above the 90-day average of 3,525,885, indicating strong conviction behind the move. With shares just 2% below the 52-week high of $258.13 and a market cap of $117.77 billion, investors appear to be emphasizing ADI’s accelerating fundamentals over trailing EPS (TTM) of $3.92. The result is bullish momentum that aligns with improving business trends and positive expectations.
What is the Analog Devices, Inc. Rating - Should I Buy?
Weiss Ratings assigns ADI a C rating. Current recommendation is Hold.
The rating is built on six indices: the Good Growth Index supports the company’s expansion trajectory, the Good Efficiency Index points to sound capital allocation, and the Excellent Solvency Index highlights balance-sheet strength. The Fair Total Return Index reflects middling risk-adjusted performance, the Fair Volatility Index indicates moderate price swings, and the Fair Dividend Index signals an adequate but not standout income profile.
Recent fundamentals help explain this mix. Revenue growth of 24.57% aligns with the Good Growth Index, while an 18.84% profit margin supports the Good Efficiency Index. A 61.07 P/E ratio suggests investors are paying a premium for earnings, contributing to the Fair Total Return Index as performance normalizes. Return on equity at 5.65% is modest, indicating room for improvement in capital efficiency. A 1.62% dividend yield is consistent with the Fair Dividend Index, while strong cash flow and liquidity underpin the Excellent Solvency Index and buffer against cyclical risks.
Relative to peers, sector peers include NVDA (B), AAPL (B), and MSFT (B). ADI’s C rating trails these B-rated names, which currently offer stronger risk-adjusted performance profiles and more consistent total returns. However, ADI’s balanced fundamentals, broad end-market exposure, and solid financial position keep it competitive within large-cap technology.
Overall, the combination of Good growth and efficiency with Excellent solvency is constructive, but only partially offsets average total return, fair volatility, and a modest dividend. That balance supports a Hold, reflecting an overall risk/reward profile that is about average at current valuation.
About Analog Devices, Inc.
Analog Devices, Inc. designs, manufactures, and markets high-performance analog, mixed-signal, and digital signal processing integrated circuits used to convert real-world phenomena into actionable data. Operating within the Semiconductors and Semiconductor Equipment industry in the Information Technology sector, ADI’s portfolio spans data converters, amplifiers, radio frequency and microwave components, power management ICs, precision timing, and embedded processing solutions.
The company’s data converters—analog-to-digital (ADCs) and digital-to-analog (DACs)—anchor the signal chain, enabling accurate measurement and control across industrial automation, instrumentation, healthcare, communications infrastructure, and automotive systems. Its amplifier and linear products provide precision, low-noise performance for sensing and conditioning signals, while RF and microwave components support connectivity, radar, and advanced communications. In automotive, ADI supplies battery management systems for electric vehicles, powertrain solutions, in-cabin experience technologies, and advanced driver-assistance sensing, leveraging high reliability and safety certifications.
Power management offerings optimize efficiency and thermal performance across a range of applications, and MEMS-based sensors deliver motion, vibration, and inertial measurements critical to predictive maintenance and navigation. ADI complements its hardware with software, development tools, and reference designs to accelerate customer time-to-market and ensure end-to-end performance.
A key competitive advantage is the company’s depth in high-performance analog engineering, long product life cycles, and close collaboration with customers on complex designs. This enables durable positions in mission-critical applications where precision, stability, and longevity are essential, supporting sustained relevance across industrial, automotive, communications, and other embedded markets.
Investor Outlook
With earnings beating expectations, guidance moving higher, and momentum strong, ADI enters the next quarter with constructive tailwinds. The C (Hold) rating signals a balanced risk/reward profile as investors weigh improving growth against valuation and average total returns.
See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.