RptdFinFcst · v5 forward slate · sealed snap-6281-20260819T065836301087Z

ADI FQ3-2026 — grok-4.6 CONTRACT PASSED

Fiscal 2026 Q3 (quarter ended August 1, 2026), reports August 19 before the open; results unreleased at the cutoff 2026-08-19T06:05:00Z. Three statements, a two-year quarterly path, and a thesis with falsifiable triggers — every identity re-added at intake, the balance sheet rolled from the model's own cash flow.

28tool calls
1contract retries
1anchor retries
0unverified anchors
1191swall clock
400filings in corpus

Anchors stated before projecting

Each cites its filing; every anchor value was verified against the cited source at intake.

q2_fy26_revenue_billions

3.62

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q3_fy26_guided_revenue_billions

3.9

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q3_fy26_guided_adj_eps

3.3

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q3_fy26_guided_gaap_eps

2.6

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q2_fy26_adj_eps

3.09

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q2_fy26_gaap_eps

2.4

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q2_fy26_adj_operating_margin_pct

49.0

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q2_fy26_gaap_operating_margin_pct

38.1

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q3_guided_acquisition_adjustments_millions

391

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declared_quarterly_dividend_per_share

1.1

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Headline forecast

Revenue ($M) 3,820 p50 3,935 4,060 model guide mid 3,9003,8004,000company
Model p10–p50–p90 against the company's guided range.
Adjusted EPS (USD) 3.12 p50 3.38 3.58 model guide mid 3.303.153.45company
Model p10–p50–p90 against the company's guided range.
Free cash flow ($M) 1,150 p50 1,422 1,680 model
Model p10–p50–p90.

The income statement walk

Prior quarter as filed · forecast · change. ✓ = identity enforced at intake.

Line ($M)Prior as filedForecastΔ
Revenue2,8803,935+36.6%
Cost of sales1,0911,272+16.6%
Gross margin ✓1,7902,663+48.8%
Research and development454530+16.7%
Selling, marketing, general and administrative326376+15.4%
Amortization of intangibles187188+0.3%
Special charges, net44-8.0%
Total operating expenses ✓9721,098+13.0%
Operating income ✓8181,565+91.3%
Interest expense8088+10.6%
Interest income-27-26-4.0%
Other, net2-2-194.8%
Total nonoperating expense (income) ✓5560+9.9%
Income before income taxes ✓7631,505+97.2%
Provision for income taxes245196-20.0%
Net income ✓5191,309+152.5%
Shares used to compute diluted EPS497488-1.7%
Diluted earnings per common share ✓1.042.68+157.7%

Bridge: net income 1,309 + acquisition_related_expenses 391 + special_charges_net 4 + tax_related_items -53 = non-GAAP net income 1,651 ÷ 488M shares = 3.38 adjusted EPS.

The cash flow statement

As-reported sign conventions; free cash flow = CFO + capex; ✓ totals re-added at intake.

Line ($M)Prior as filedForecast
Net income5191,309
Depreciation103106
Amortization of intangibles385380
Stock-based compensation expense8583
Deferred income taxes52-55
Other-6-6
Changes in operating assets and liabilities28-250
Total adjustments ✓647258
Net cash provided by operating activities ✓1,1651,567
Purchases of short-term available-for-sale investments-1,150-40
Additions to property, plant and equipment, net-79-145
Other investing activities-1-15
Net cash used for investing activities ✓-1,230-200
Proceeds from debt1,4910
Proceeds from commercial paper notes2,5513,900
Payments of commercial paper notes-2,551-3,880
Repurchase of common stock-1,075-647
Dividend payments to shareholders-490-536
Proceeds from employee stock plans4314
Other financing activities422
Net cash provided by financing activities ✓10-1,147
Net decrease in cash and cash equivalents ✓-55220

The projected balance sheet

End of quarter. Cash rolls from the model's own cash flow; retained earnings roll from net income, dividends, and buybacks.

Line ($M)Prior as filedForecast
Cash and cash equivalents2,4372,657
All other assets (residual)45,51245,548
Total assets ✓47,94948,205
Total liabilities14,20714,240
Retained earnings11,52612,299
Common stock, capital in excess of par and AOCI (residual)22,21621,666
Total shareholders' equity ✓33,74233,965

Expected next-period guidance

Revenue3,950 – 4,150
Adjusted EPS3.35 – 3.65

Quarterly path — where no guide exists

Beyond the guided quarter the model is modeling, not retrieving.

QuarterRev p50 ($M)Rev bandAdj EPS p50GMOMCapexFCF
fiscal 2026 Q4 (ending late October 2026)4,0903,920–4,2503.5268.0%40.8%-1551,545
fiscal 2027 Q1 (ending late January 2027)3,9703,780–4,1803.3867.8%40.2%-1501,600
fiscal 2027 Q2 (ending early May 2027)4,2003,960–4,4503.6568.3%41.8%-1551,625
fiscal 2027 Q3 (ending late July or early August 2027)4,3504,080–4,6203.8568.5%42.3%-1601,690

Fiscal-year horizons — absolute forecasts, tracked as vintages

Fiscal yearRev p50 ($M)Rev bandAdj EPS p50EPS bandCapexFCF
fiscal year 2026 (ending late October 2026)14,80814,550–15,10012.4411.90–12.90-5474,961
fiscal year 2027 (ending late October 2027)16,30015,200–17,50014.4013.20–15.60-6505,550
fiscal year 2028 (ending late October 2028)17,60016,000–19,20016.0014.50–17.60-7006,300
fiscal year 2029 (ending late October 2029)18,90016,800–21,00017.7015.80–19.80-7507,050

Thesis — commitments and triggers, all fundamentals

Every commitment cites a source and names the forecast lines it flows into; every trigger is an observable reported fundamental with its check date. Triggers are re-served to the next run for review.

Q3 FY26 outlook of $3.9B +/- $100M revenue and $3.30 +/- $0.15 adjusted EPS, with ~49% adjusted operating margin at the midpoint.

0000006281-26-000050:adi2q26exhibit991earnings.htm:b0000014 · horizon Q3 FY26 print

flows into: income_statement.revenue, headline.eps_adjusted, bridge.non_gaap_net_income

Hybrid manufacturing scale and optionality, built by multi-year supply-chain investment, is intended to convert demand surges into revenue.

ir:30a66bcf5ffb0a45dc00ded978f9779d9f57724df921f0e16a030929a2d539e2 page 3 · horizon FY26-FY27

flows into: cash_flow.capex, horizons.fy0.capex, horizons.fy1.capex

Board declared a $1.10 quarterly dividend and Q2 returned $1.3B via dividends and buybacks; capital return remains the default use of FCF.

0000006281-26-000050:adi2q26exhibit991earnings.htm:b0000018 · horizon ongoing quarterly

flows into: cash_flow.dividends, cash_flow.buybacks, cash_flow.cff

Data center and ATE are on steep AI-driven trajectories with rising confidence that growth continues into 2027; aerospace and defense hit a new high.

ir:30a66bcf5ffb0a45dc00ded978f9779d9f57724df921f0e16a030929a2d539e2 page 3 · horizon FY26-FY27

flows into: quarterly_path.fq4_26.revenue, horizons.fy1.revenue, income_statement.revenue

Industrial ex-ATE/A&D grew more than 40% in 1H FY26, remains below prior-cycle highs with lean channel inventories, and is described as poised for continued strong growth.

ir:30a66bcf5ffb0a45dc00ded978f9779d9f57724df921f0e16a030929a2d539e2 page 3 · horizon coming quarters and longer term

flows into: quarterly_path.fq4_26.revenue, horizons.fy0.revenue, horizons.fy1.revenue

TTM operating cash flow of $5.1B (40% of revenue) and TTM free cash flow of $4.6B (36% of revenue).

0000006281-26-000050:adi2q26exhibit991earnings.htm:b0000004 · horizon FY26

flows into: headline.fcf, horizons.fy0.fcf, horizons.fy0.cfo

What would make it a buyer

Q3 FY26 revenue at or above $4.00B with Industrial still up sequentially versus Q2's $1,799M

checkable at: Q3 FY26 earnings 8-K / EX-99.1 (August 2026)

Q3 FY26 adjusted EPS at or above $3.45 and adjusted operating margin at or above 49%

checkable at: Q3 FY26 earnings 8-K non-GAAP reconciliation

Q3 FY26 free cash flow at or above $1.40B as the Q2 working-capital drain ($808M use) normalizes

checkable at: Q3 FY26 cash flow statement in 8-K / 10-Q

Q4 FY26 guided revenue midpoint at or above $4.05B, confirming the cycle has not peaked in Q3

checkable at: Q3 FY26 outlook paragraph in the earnings release

What would make it a seller

Q3 FY26 revenue at or below $3.80B, i.e. at or under the low end of company guidance

checkable at: Q3 FY26 earnings 8-K / EX-99.1

Q3 FY26 adjusted EPS at or below $3.15 or GAAP operating margin below 37.5%

checkable at: Q3 FY26 earnings 8-K income statement and non-GAAP bridge

Industrial revenue down sequentially versus Q2 $1,799M, or Communications down sequentially versus Q2 $555M

checkable at: Q3 FY26 end-market revenue table in EX-99.1

Q3 FY26 CFO at or below $1.00B, implying the receivables/inventory build is not converting

checkable at: Q3 FY26 condensed cash flow statement

What must be true: The Industrial restock that produced Q2's 20% sequential jump and 56% YoY growth is still running after August 1, not a one-quarter pull-forward; AI data-center/ATE and aerospace continue to offset any auto or consumer softness; hybrid internal/external capacity actually ships the record bookings rather than creating a lead-time spike that later cancels; pricing stays resilient so incremental revenue drops through at ~49% adjusted operating margin; and the Q2 working-capital absorption reverses enough that FCF conversion stays above 30% of sales.

Preview note, verbatim

ADI prints Q3 FY26 (ended August 1) against a $3.9B +/- $100M revenue box and $3.30 +/- $0.15 adjusted EPS. Q2 already cleared the high end at $3.62B / $3.09, with record B2B bookings and Industrial +20% QoQ / +56% YoY. The quarter is closed; this is a beat-or-miss on a completed period, not a live guide. Three things decide it. First, Industrial: management said automation, ETM, energy, healthcare and broad market were still below prior-cycle highs with lean channels — if that restock continued, revenue lands above $3.93B; a pause puts the print on the $3.8B rail. Second, mix and incremental margin: Q2 adjusted GM was 73% and adjusted OM 49%. A further Industrial/Communications-heavy mix should hold OM and push adjusted EPS to ~$3.38; a Consumer/Auto mix shift or utilization giveback would clip the EPS beat. Third, cash conversion: Q2 CFO was only $872M after an $808M working-capital use. The stock will treat sub-$1.1B CFO as evidence the top-line surge was inventory, not end demand. We expect a modest beat ($3.935B, $3.38 adj. EPS) and Q4 guide of $4.05B +/- $100M / $3.50 +/- $0.15. Reaction hinges on Industrial sequential growth and whether Q4 guide clears $4.0B.

Full model reasoning (verbatim)

Latest reported quarter is Q2 FY26 (ended May 2, 2026), not the year-ago figures in the prompt template. Filed Q2 revenue was $3,623M, GAAP EPS $2.40, adjusted EPS $3.09, GAAP OM 38.1%, adjusted OM 49.0%, cash $2,437M. Company guided Q3 to $3.9B +/- $100M, GAAP EPS $2.60 +/- $0.15, adjusted EPS $3.30 +/- $0.15, ~39% GAAP / ~49% adjusted OM, 12–14% tax, $391M acquisition-related add-backs. I take the guide as the base but print above the midpoint: Q2 beat the high end, bookings were described as record across Industrial/Auto/Comms, Industrial was still below prior-cycle peaks with lean inventories, and ATE/data-center/A&D were called out as continuing into 2027. Sequential +8.6% to $3,935M is inside the guide band and below Q2's 15% sequential jump, so it does not require another surge. Operating leverage on that beat, with opex growing slower than sales and special charges near zero, produces GAAP NI $1,309M ($2.68) and non-GAAP NI $1,651M ($3.38) on 488.5M diluted shares. CFO rebounds from Q2's WC hole to $1,567M; capex -$145M; FCF $1,422M; buybacks and the $1.10 dividend keep CFF an outflow. BS rolls from the filed May 2 cash $2,436.92M and RE $11,526M. Q4 is modeled as a further mid-single-digit sequential step to $4,090M, which is also the midpoint I expect them to guide. FY26 sums Q1 $3,160 + Q2 $3,623 + Q3 $3,935 + Q4 $4,090. FY27–29 assume high-single-digit through-cycle growth as Industrial completes the restock and AI/automation/energy remain the secular stack, with FCF conversion staying in the mid-30s and almost all of it returned via buybacks and a slowly rising dividend.

Sealed as snap-6281-20260819T065836301087Z over corpus manifest 2fe8477b… (400 filings, five-year window). Replay: python -m rff.filing.snapshot --replay snap-6281-20260819T065836301087Z. Prompt v5. Nothing here is investment advice.