Analog DevicesMEX:ADI -7.34%77 Operating Margin % is 38.08% as of Apr. 2026, which is 33% above its 10-year median of 28.63. GuruFocus rates MEX:ADI with a GF Score™ of 77/100 and a GF Value™ of MXN5,285.00 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,023 Semiconductors companies, Analog Devices ranks better than 94.72% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Analog Devices's Operating Income for the
three
months ended in Apr. 2026 was MXN24,167 Mil. Analog Devices's Revenue for the
three
months ended in Apr. 2026 was MXN63,469 Mil. Therefore, Analog Devices's Operating Margin % for the quarter that ended in Apr. 2026 was 38.08%.
The historical rank and industry rank for Analog Devices's Operating Margin % or its related term are showing as below:
MEX:ADI'
s Operating Margin % Range Over the Past 10 Years
Min: 21.96 Med: 28.63 Max: 32.91
Current: 32.91
MEX:ADI's Operating Margin % is ranked better than 94.72% of 1023
companies
in the Semiconductors industry
Industry Median: 5.18
vs MEX:ADI: 32.91
Analog Devices's 5-Year Average Operating Margin % Growth Rate was -0.80% per year.
Analog Devices's Operating Income for the
three
months ended in Apr. 2026 was MXN24,167 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was MXN75,285 Mil.
Analog Devices (MEX:ADI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Analog Devices Operating Margin % Related Terms
Analog Devices Operating Margin % Historical Data
* Premium members only.
The historical data trend for Analog Devices's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ADI vs MRVL, QCOM, TXN: Operating Margin % Comparison
For the Semiconductors subindustry, Analog Devices's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Analog Devices Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Analog Devices's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Analog Devices's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Analog Devices's Operating Margin % for the fiscal year that ended in Oct. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Analog Devices (MEX:ADI) has a Operating Margin % of 38.08% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Analog Devices and its competitors. This is 33% above median its historical median of 28.63. Over the past decade, Analog Devices' Operating Margin % has ranged from 21.96 to 32.91. According to the industry distribution chart, Analog Devices ranks #54 out of 1023 companies in the Semiconductors industry, placing it in the top 5.3%.
Is Analog Devices' Operating Margin % too high?
Analog Devices' current Operating Margin % of 38.08% is 33% above median its 10-year median of 28.63. Over the past 10 years, this metric has ranged from a low of 21.96 to a high of 32.91. The Semiconductors industry median Operating Margin % is 5.18. Analog Devices' value of 38.08% is 635.1% above this industry median. Based on the distribution chart, Analog Devices ranks #54 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Analog Devices has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Analog Devices' Operating Margin % compare to MRVL and QCOM?
According to the Semiconductors industry distribution chart, Analog Devices ranks #54 out of 1023 companies for Operating Margin %. This places Analog Devices in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.18. Analog Devices' value of 38.08% is 635.1% above this benchmark. Historically, Analog Devices' own Operating Margin % has ranged from 21.96 to 32.91 over the past decade. While the company's 10-year median is 28.63 vs. the industry median of 5.18, Analog Devices has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Analog Devices's current Operating Margin % of 38.08% is 635.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Analog Devices and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Analog Devices's current Operating Margin % is 38.08%, which is 33% above median its own 10-year median of 28.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Analog Devices stock overvalued right now?
Based on GuruFocus' analysis, Analog Devices (MEX:ADI) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN5,285.00, compared to a current price of MXN7,124.93 — trading 34.8% above its estimated fair value. The current Operating Margin % is 38.08%, which is 33% above median its 10-year median of 28.63 and 635.1% above the Semiconductors industry median of 5.18. Analog Devices' overall GF Score™ is 77/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Analog Devices (MEX:ADI), the current Operating Margin % is 38.08% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Analog Devices (MEX:ADI) Overvalued in 2026?
Based on GuruFocus' analysis, Analog Devices stock appears to be overvalued.
The current stock price of MXN7,124.93 is trading 34.8% above its estimated GF Value™ of MXN5,285.00.
GuruFocus considers Analog Devices to be Significantly Overvalued.
Key valuation signals for MEX:ADI:
Operating Margin %: 38.08% (33% above median its 10-year median of 28.63)
GF Value™: MXN5,285.00 vs. price of MXN7,124.93 (34.8% above fair value)
Industry Position: 635.1% above the Semiconductors median (#54 of 1023)
No single metric tells the full story. See the MEX:ADI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Analog Devices is a leading analog, mixed-signal, and digital-signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers; more than half of its chip sales are to industrial and automotive end markets. ADI's chips are also incorporated into wireless infrastructure equipment.
77GF Score
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