ADI · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
ANALOG DEVICES INC · 2026-08-19 · Importance 69 · Surprise 64 · In source text
Third-quarter gross margin increased to $2.708 billion from $1.790 billion, while nine-month gross margin increased to $7.192 billion from $4.832 billion. Gross margin percentage expanded 520 basis points year over year to 67.3% in the third quarter and 580 basis points to 66.6% for the first nine months. The improvement primarily reflected higher utilization of manufacturing fixed costs resulting from increased customer demand and a favorable product mix across end markets.
Key facts
- Gross margin dollars for three months ended August 1, 2026: $2,707,544 source
- Gross margin dollars for nine months ended August 1, 2026: $7,192,318 source
- Gross margin percentage increased by 520 basis points in the three-month period ended August 1, 2026 versus prior year source
- Three months ended August 1, 2026 gross margin %: 67.3% source
- Nine months ended August 1, 2026 gross margin %: 66.6% source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | — | Gross margin dollars for three months ended August 1, 2026: $2,707,544 |
| margin | positive | realized | — | Gross margin dollars for nine months ended August 1, 2026: $7,192,318 |