Stock Analysis on Net
Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

Common-Size Income Statement 
Quarterly Data

Analog Devices Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Jan 31, 2026 Nov 1, 2025 Aug 2, 2025 May 3, 2025 Feb 1, 2025 Nov 2, 2024 Aug 3, 2024 May 4, 2024 Feb 3, 2024 Oct 28, 2023 Jul 29, 2023 Apr 29, 2023 Jan 28, 2023 Oct 29, 2022 Jul 30, 2022 Apr 30, 2022 Jan 29, 2022 Oct 30, 2021 Jul 31, 2021 May 1, 2021 Jan 30, 2021 Oct 31, 2020 Aug 1, 2020 May 2, 2020 Feb 1, 2020
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -35.29 -36.87 -37.86 -38.96 -40.97 -42.04 -43.29 -45.34 -41.34 -39.38 -36.24 -34.28 -34.63 -34.02 -34.30 -34.57 -47.77 -52.05 -30.57 -31.59 -32.92 -32.97 -33.21 -35.71 -34.94
Gross margin 64.71% 63.13% 62.14% 61.04% 59.03% 57.96% 56.71% 54.66% 58.66% 60.62% 63.76% 65.72% 65.37% 65.98% 65.70% 65.43% 52.23% 47.95% 69.43% 68.41% 67.08% 67.03% 66.79% 64.29% 65.06%
Research and development -14.79 -15.18 -15.77 -16.74 -16.63 -15.51 -15.69 -16.44 -15.58 -14.97 -13.77 -12.74 -12.74 -12.96 -13.89 -14.16 -15.90 -17.06 -17.43 -18.19 -18.49 -18.36 -17.91 -19.16 -19.72
Selling, marketing, general and administrative -10.92 -11.12 -11.31 -11.46 -11.75 -11.35 -11.12 -11.31 -11.54 -10.64 -10.86 -9.94 -10.04 -10.36 -10.51 -10.27 -11.08 -13.57 -11.72 -12.44 -11.89 -10.82 -10.56 -10.76 -15.29
Amortization of intangibles -5.93 -6.09 -6.51 -7.10 -7.73 -7.68 -8.12 -8.75 -7.57 -7.46 -8.15 -7.75 -7.79 -7.79 -8.13 -8.53 -9.44 -9.13 -6.13 -6.49 -6.91 -7.08 -7.35 -8.14 -8.23
Special charges, net -1.52 0.00 -0.15 -0.07 -2.64 -0.12 -0.53 -0.28 -0.64 -4.20 -0.77 -0.71 0.00 -0.92 -4.44 -1.57 -2.23 -3.96 0.51 -0.02 -0.03 -0.53 -2.19 -0.10 -0.85
Operating expenses -33.16% -32.40% -33.74% -35.37% -38.75% -34.66% -35.46% -36.77% -35.34% -37.27% -33.55% -31.14% -30.57% -32.03% -36.97% -34.53% -38.64% -43.72% -34.77% -37.13% -37.31% -36.78% -38.01% -38.16% -44.09%
Operating income 31.55% 30.73% 28.40% 25.68% 20.28% 23.31% 21.25% 17.88% 23.32% 23.35% 30.21% 34.58% 34.80% 33.95% 28.72% 30.89% 13.59% 4.23% 34.66% 31.28% 29.76% 30.25% 28.78% 26.12% 20.98%
Interest expense -2.73 -2.87 -2.76 -2.83 -3.11 -3.39 -3.68 -3.57 -3.07 -2.64 -2.25 -1.94 -1.86 -1.47 -1.65 -1.67 -1.94 -2.33 -2.54 -2.59 -2.73 -3.18 -3.15 -3.80 -3.74
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -9.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest income 1.02 1.07 0.94 0.82 0.97 1.14 1.14 0.71 0.36 0.33 0.29 0.39 0.33 0.13 0.06 0.02 0.01 0.02 0.02 0.02 0.01 0.03 0.03 0.10 0.15
Other, net 0.09 -0.09 -0.07 0.04 -0.16 0.07 -0.41 0.01 -0.18 0.00 0.19 0.31 -0.24 -0.34 0.13 0.34 0.39 0.61 0.40 -0.06 0.96 0.24 -0.05 -0.02 -0.03
Nonoperating income (expense) -1.62% -1.89% -1.90% -1.97% -2.30% -2.17% -2.96% -2.85% -2.89% -2.31% -1.78% -1.24% -1.76% -1.68% -1.46% -1.31% -1.53% -10.91% -2.12% -2.63% -1.75% -2.91% -3.17% -3.72% -3.62%
Income before income taxes 29.93% 28.84% 26.50% 23.71% 17.98% 21.13% 18.29% 15.03% 20.43% 21.05% 28.44% 33.34% 33.03% 32.27% 27.27% 29.58% 12.05% -6.68% 32.54% 28.65% 28.02% 27.34% 25.62% 22.40% 17.35%
(Provision for) benefit from income taxes -3.64 -3.23 -8.50 -2.13 -1.83 -1.57 -1.33 -1.04 -2.02 -2.70 0.07 -3.38 -3.45 -3.44 -3.18 -3.23 -1.62 9.91 -3.92 -3.19 -3.09 -2.02 -0.71 -2.08 -1.71
Net income 26.29% 25.61% 18.00% 21.58% 16.15% 19.57% 16.96% 14.00% 18.42% 18.35% 28.51% 29.96% 29.59% 28.83% 24.08% 26.35% 10.43% 3.24% 28.62% 25.45% 24.93% 25.32% 24.91% 20.33% 15.64%

Based on: 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-Q (reporting date: 2025-02-01), 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01).

The financial performance, as represented by common-size income statements, exhibits notable fluctuations over the observed period. Revenue is consistently represented at 100% throughout, allowing for a focused analysis of expense and income percentages. A significant shift in cost of sales is apparent, increasing substantially in late 2021 and remaining elevated through 2024 before decreasing again in the most recent periods.

Gross Margin
Gross margin demonstrates a generally upward trend from February 2020 to July 2021, peaking at 69.43%. A sharp decline occurs in October 2021, coinciding with the increase in cost of sales, falling to 47.95%. It recovers through 2022 and 2023, but experiences another dip in early 2024 before stabilizing and increasing again in the latter half of 2024 and early 2025. This volatility suggests sensitivity to cost of goods sold and potentially pricing pressures.
Research and Development
Research and development expenses, as a percentage of revenue, generally decreased from 19.72% in February 2020 to 14.79% in January 2026. While fluctuations exist, the overall trend indicates a relative reduction in investment in this area as a proportion of revenue. The decrease is not consistent, with some quarters showing increases, but the long-term direction is downward.
Selling, Marketing, General and Administrative Expenses
These expenses show considerable variation. They decreased significantly from February 2020 (15.29%) to May 2020 (10.76%), then increased again, peaking at 13.57% in October 2021. A subsequent decline is observed, followed by a period of relative stability before increasing again in late 2023 and early 2024. The fluctuations suggest potential changes in marketing strategies or administrative costs.
Amortization of Intangibles
Amortization of intangibles consistently decreased as a percentage of revenue from 8.23% in February 2020 to 5.93% in January 2026. This suggests a diminishing impact of intangible assets on the income statement, potentially due to asset depreciation or changes in acquisition strategy.
Operating Income
Operating income as a percentage of revenue demonstrates a generally positive trend until late 2021, peaking at 34.66% in July 2021. The decline in gross margin in October 2021 significantly impacted operating income, dropping to 4.23%. It recovers through 2022 and 2023, but remains below the peak levels. The most recent periods show a stabilization around 26-31%, indicating a recovery but not a return to previous highs.
Net Income
Net income mirrors the trends observed in operating income, influenced by fluctuations in nonoperating items and tax provisions. It generally increased from February 2020 (15.64%) to July 2021 (28.62%), then experienced a substantial decline in late 2021. Recovery is observed in subsequent periods, with net income stabilizing around 18-29% in the later quarters. The impact of tax provisions is noticeable, with both positive and negative effects on net income throughout the period.

The period from October 2021 through early 2022 represents a period of significant disruption, likely due to increased costs and potentially specific, unusual charges. The subsequent recovery indicates successful mitigation strategies, but the company has not fully regained its previous levels of profitability as a percentage of revenue. The consistent decrease in amortization of intangibles and research and development expenses as a percentage of revenue warrants further investigation to understand the long-term implications for innovation and growth.