ADINEUTRAL

ADI Gross Margin Analysis

67.3%

Higher than 56% of Technology sector peers

Updated 2477h ago·SEC filings & market data

Key Takeaway

Analog Devices’ gross margin of 67.3% means that after subtracting the direct costs of manufacturing its chips, 67.3 cents of every dollar in revenue remain to cover other expenses.

Sector Performance

56th percentile

ADI

67.3%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

64.7%(Apr 2026)

↑ Improving

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Deep Analysis

Analog Devices’ gross margin of 67.3% means that after subtracting the direct costs of manufacturing its chips, 67.3 cents of every dollar in revenue remain to cover other expenses.

That figure sits above the technology sector median of 62.2%, placing ADI in the 60th percentile among its peers — meaning the company retains a higher share of revenue from production than 60% of comparable firms. Because only a single historical value of 67.3% was provided, the year-over-year and quarter-over-quarter changes are not available, so no trend direction can be determined from the past eight quarters. A high gross margin generally indicates pricing power or cost advantages, but the complete absence of trend data makes it impossible to judge whether this level is stable, improving, or declining. This metric supports the overall NEUTRAL verdict: the gross margin is solid and above average, yet without any directional movement it does not point to a clear positive or negative shift in fundamentals.

Frequently Asked Questions

What does the Gross Margin tell investors about ADI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ADI's Gross Margin compare to its sector?

ADI's Gross Margin of 67.3% compares to a Technology sector median of 66.3%, placing it in the 56th percentile.

Who are ADI's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: BRZE (65.7%), AVGO (67.2%), TSM (67.7%), MDB (72.2%), CRWD (75.3%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.