Press release
Analog Devices Outlines Strong Strategic Vision and New Financial Model at 2022 Investor Day
- Actions Underway Include Driving Growth Through Customer Success and Moving Up the Technology Stack to Build and Empower the Intelligent Edge - Reinforces
About this update from Analog Devices, Inc.
[{"type":"text","content":"\n- Actions Underway Include Driving Growth Through Customer Success and Moving Up the Technology Stack to Build and Empower the Intelligent Edge\n\n- Reinforces High-Performance Broad Portfolio; Diverse Customers, Applications, and Markets; Customer-Centric Culture; and Resilient Hybrid Manufacturing Model\n\n- Announces New Financial Model that Increases Revenue Growth Target to 7-10% CAGR and Adjusted Operating Margin Target to 42-50%\n\n WILMINGTON, Mass.--(BUSINESS WIRE)--\nAnalog Devices, Inc. (Nasdaq: ADI), a leading global high-performance analog technology company, today hosted its 2022 Investor Day at its new LEED-certified Wilmington, MA headquarters. Members of the leadership team shared how the Company is leveraging its high-performance analog portfolio to capitalize on key secular growth trends aligned with electrification, digitization, automation, and connectivity.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220405006014/en/\n“For more than half a century, we have stayed true to our ethos of solving our customers’ critical and complex problems, while building the most durable and premier analog, mixed signal, and power franchise. We have a tremendous opportunity ahead of us as we execute our long-term vision to build and empower the intelligent edge by bringing digital technologies and software closer to the edge, making it more intelligent and prescient,” said Vincent Roche, Chief Executive Officer and Chair of ADI. “As we move up the technology stack, capture opportunity presented by key secular trends and deepen customer relationships through innovation, we have great confidence we will achieve our increased annual revenue growth target of 7% to 10%. While we deliver sustainable growth, we see a path to $15 of adjusted earnings per share and 40% free cash flow margin, enabling us to create significant value for shareholders for years to come.”\n\nIn conjunction with today’s event, ADI announced its new long-term financial model, highlighting the following expectations:\n\n\n\nMetric\n\n\n\nNew Model1\n\n\n\n\n\nRevenue growth\n\n\n\n7-10% CAGR\n\n\n\n\n\nAdjusted Gross margin\n\n\n\nFloor of 70%\n\n\n\n\n\nAdjusted Operating margin\n\n\n\n42-50%\n\n\n\n\n\nFree cash flow margin2\n\n\n\n34-40%\n\n\n\n\n\nFree cash flow return\n\n\n\n100%\n\n\n\n\...