Major ClientsNarrow moat

Analog Devices (ADI) — moat facet

ADI has no end customer at 10% of revenue, but its largest distributors took 48% of revenue in fiscal 2024, so its concentration sits in the channel.

ADI's customers are many and its channels are few, and the two facts have to be read together. No end customer accounted for 10% or more of revenue in fiscal 2023, 2024 or 20251. But one distributor took 24% of fiscal 2025 revenue and another 13%2, and in fiscal 2024 three distributors took 24%, 12% and 12%3.

Analog Devices revenue concentration, FY2025 (% of revenue)Distributor 124Distributor 313Largest end customerbelow 10Analog Devices Form 10-K FY2025, significant distributors
The largest exposures are distributors, not end customers.

The revenue concentration is therefore in the channel, not the end market. A part that reaches several hundred end customers usually passes through a distributor on the way, and the distributors that matter are few. ADI sold 56% of fiscal 2025 revenue through distributors and 43% direct4.

Backlog concentration is a separate question and cannot be answered. ADI defines backlog as orders due within thirteen weeks and does not report it5, and it has no remaining-performance-obligation disclosure.

The four pages below take the pieces in turn. No End Customer at Ten Percent is the breadth. Distributor 1: A Quarter of Revenue is the channel concentration. Apple: Twelve Percent, Then Unnamed is the one large end customer ADI used to disclose. A Thirteen-Week Backlog, Not Disclosed is what cannot be seen.

The channel mix has shifted toward direct sales over the last three years and back a little in the upturn. Direct customers took 37% of revenue in fiscal 2023, 40% in 2024 and 43% in 20256, and 39% in the third quarter of fiscal 20267. The filing describes direct customers as non-distributor customers that consist "primarily of original equipment manufacturers (OEMs)"8; the move toward them raises the chance that a single end customer will one day cross 10% of revenue again.

Taken together, the customer base is a strength with a single point of dependence. The number to follow is the combined share of distributors above 10%: about 48% in fiscal 2024 and at least 37% in 20259. Above half, the channel would hold more of ADI's revenue than any end market does.

Moat trajectory: Holding steady

Distributors above 10%: about 48% of revenue in FY2024, at least 37% in FY2025.

The number that tests this moat
Moat Explorer calc
Revenue through distributors at 10% or more, full year
at least 37% (FY2025: 24% plus 13%), from 48% in FY2024

How much revenue a few channel partners control; above 50% would put more in their hands than in any end market.

How it's calculated: Sum of distributor shares at or above 10% of revenue in the significant-distributor table, Analog Devices Form 10-K FY2025.
Source: Moat Explorer calculation from Analog Devices filings ↗
Dig deeper
DIG DEEPER 01
No End Customer at Ten Percent
No end customer reached 10% of ADI's revenue in fiscal 2023 to 2025, because many of its parts sell to hundreds of customers each.
DIG DEEPER 02
Distributor 1: A Quarter of Revenue
One unnamed distributor has taken about a quarter of ADI's revenue for four years, and three together took 48% in fiscal 2024.
DIG DEEPER 03
Apple: Twelve Percent, Then Unnamed
Apple was 12% of ADI's revenue in fiscal 2017; consumer has since shrunk from 24% of revenue to 13% as the rest of the company grew.
DIG DEEPER 04
A Thirteen-Week Backlog, Not Disclosed
ADI defines backlog as orders due within thirteen weeks and publishes no figure, so the concentration of its future orders cannot be checked.
References
  1. ReportedNo end customer accounted for 10% or more of revenue in fiscal 2023, 2024 or 2025.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - Item 1 business: products, customers, engineers, competition and strategy. — FY2025 · publ. 25 November 2025 · source ↗
  2. ReportedBut one distributor took 24% of fiscal 2025 revenue and another 13%, and in fiscal 2024 three distributors took 24%, 12% and 12%.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - revenue by end market, sales channel and geography, and significant distributors. — FY2025 · publ. 25 November 2025 · source ↗
  3. ReportedBut one distributor took 24% of fiscal 2025 revenue and another 13%, and in fiscal 2024 three distributors took 24%, 12% and 12%.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - revenue by end market, sales channel and geography, and significant distributors. — FY2025 · publ. 25 November 2025 · source ↗
  4. ReportedADI sold 56% of fiscal 2025 revenue through distributors and 43% direct.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - revenue by end market, sales channel and geography, and significant distributors. — FY2025 · publ. 25 November 2025 · source ↗
  5. ReportedADI defines backlog as orders due within thirteen weeks and does not report it, and it has no remaining-performance-obligation disclosure.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - Item 1 business: products, customers, engineers, competition and strategy. — FY2025 · publ. 25 November 2025 · source ↗
  6. ReportedDirect customers took 37% of revenue in fiscal 2023, 40% in 2024 and 43% in 2025, and 39% in the third quarter of fiscal 2026.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - revenue by end market, sales channel and geography, and significant distributors. — FY2025 · publ. 25 November 2025 · source ↗
  7. ReportedDirect customers took 37% of revenue in fiscal 2023, 40% in 2024 and 43% in 2025, and 39% in the third quarter of fiscal 2026.
    Analog Devices Form 10-Q for the quarter ended 1 August 2026 - end-market and channel revenue, the Empower acquisition, the Penang sale, the buyback authorisation and the chief operating decision maker. — Q3 FY2026 · publ. 19 August 2026 · source ↗
  8. ReportedThe filing describes direct customers as non-distributor customers that consist "primarily of original equipment manufacturers (OEMs)"; the move toward them raises the chance that a single end customer will one day cross 10% of revenue again.
    Analog Devices Form 10-K for fiscal 2025 (year ended 1 November 2025) - revenue by end market, sales channel and geography, and significant distributors. — FY2025 · publ. 25 November 2025 · source ↗
  9. Moat Explorer calcThe number to follow is the combined share of distributors above 10%: about 48% in fiscal 2024 and at least 37% in 2025.
    Moat Explorer calculation from Analog Devices reported figures ($ millions unless stated; fiscal years ending late October or early November). Revenue growth: FY2025 11,019.7 / 9,427.2 - 1 = +16.9%; FY2024 9,427.2 / 12,305.5 - 1 = -23.4%; FY2023 12,305.5 / 12,014.0 - 1 = +2.4%; FY2022 12,014.0 / 7,318.3 - 1 = +64.2%; FY2021 7,318.3 / 5,603.1 - 1 = +30.6%; FY2020 5,603.1 / 5,991.1 - 1 = -6.5%; FY2019 5,991.1 / 6,224.7 - 1 = -3.8%; FY2024 revenue fall 12,305.5 - 9,427.2 = 2,878.3, about $2.9bn; FY2026 implied 10,805.6 + 4,300 = 15,105.6, about $15.1bn, 15,105.6 / 11,019.7 - 1 = +37%, 15,105.6 / 12,305.5 - 1 = +23%; Q3 FY2026 quarterly revenue 4,021.9 / 3,076.1 - 1 = +30.7% on Q4 FY2025; 4,021.9 / 2,423.2 = 1.66 times Q1 FY2025. Operating income: FY2024 2,032.8 / 3,823.1 - 1 = -46.8%, a fall of 3,823.1 - 2,032.8 = 1,790.3, about $1.8bn. Gross profit FY2024 5,381.3 / 7,877.2 - 1 = -31.7%. Gross margin FY2015 2,259.3 / 3,435.1 = 65.8%; FY2016 2,227.2 / 3,421.4 = 65.1%; reported gross margin range FY2015-FY2025 57.1% (FY2024) to 68.3% (FY2018); Q3 FY2026 adjusted less reported 72.5 - 67.3 = 5.2 points. Acquisition-related expenses Q3 FY2026 209.2 (cost of sales) + 188.6 (operating expenses) = 397.8; nine months FY2026 619.4 + 565.1 = 1,184.5. People: revenue per employee FY2021 7,318.3 / 24,700 = about $296,000; FY2022 12,014.0 / 24,450 = $491,000; FY2024 9,427.2 / 24,000 = $393,000; FY2025 11,019.7 / 24,500 = $450,000; engineers 13,000 / 24,500 = 53% (FY2025), 11,000 / 24,700 = 45% (FY2021); engineers added 13,000 - 11,000 = 2,000. R&D as a share of revenue: FY2015 637.5 / 3,435.1 = 18.6%; FY2016 653.8 / 3,421.4 = 19.1%; FY2017 968.1 / 5,246.4 = 18.5%; FY2018 1,165.0 / 6,224.7 = 18.7%; FY2019 1,130.3 / 5,991.1 = 18.9%; FY2020 1,050.5 / 5,603.1 = 18.7%; FY2021 1,296.1 / 7,318.3 = 17.7%; FY2022 1,700.5 / 12,014.0 = 14.2%; FY2023 1,660.2 / 12,305.5 = 13.5%; FY2024 1,487.9 / 9,427.2 = 15.8%; FY2025 1,766.0 / 11,019.7 = 16.0%; Q3 FY2026 533.5 / 4,021.9 = 13.3%; R&D FY2024 1,487.9 / 1,700.5 - 1 = -12.5%. End markets: FY2024 over FY2023 Industrial 4,290.3 / 6,565.4 - 1 = -34.7%; Communications 1,091.4 / 1,591.6 - 1 = -31.4%; Automotive 2,837.5 / 2,904.0 - 1 = -2.3%; Consumer 1,207.9 / 1,244.6 - 1 = -3.0%. FY2025 over FY2024 Industrial 4,929.4 / 4,290.3 - 1 = +14.9%; Automotive 3,277.9 / 2,837.5 - 1 = +15.5%; Communications 1,377.9 / 1,091.4 - 1 = +26.2%; Consumer 1,434.6 / 1,207.9 - 1 = +18.8%. FY2017 to FY2025: Industrial 4,929.4 / 2,324.7 = 2.12 times, 9.9% a year; Automotive 3,277.9 / 758.1 = 4.3 times, 20.1% a year; Communications 1,377.9 / 908.6 = 1.52 times, 5.3% a year; Consumer 1,434.6 / 1,255.0 = 1.14 times, 1.7% a year. Consumer share 1,255.0 / 5,246.4 = 23.9% (FY2017), 933.8 / 6,224.7 = 15.0%, 752.3 / 5,991.1 = 12.6%, 624.9 / 5,603.1 = 11.2%, 1,519.9 / 12,014.0 = 12.7%, 1,244.6 / 12,305.5 = 10.1%, 1,434.6 / 11,019.7 = 13.0% (FY2025), Q3 FY2026 397.2 / 4,021.9 = 9.9%. Automotive share 3,277.9 / 11,019.7 = 29.7% (FY2025), Q3 FY2025 857.1 / 2,880.3 = 29.8%, Q3 FY2026 998.2 / 4,021.9 = 24.8%. Communications share Q3 FY2025 354.8 / 2,880.3 = 12.3%, Q3 FY2026 654.5 / 4,021.9 = 16.3%. Industrial plus Communications (4,929.4 + 1,377.9) / 11,019.7 = 57.2% (FY2025); Q3 FY2026 (1,971.9 + 654.5 = 2,626.4) / 4,021.9 = 65.3%. Trailing twelve months to August 2026 (Q4 FY2025 + Q1 + Q2 + Q3 FY2026): Industrial 1,426.5 + 1,489.3 + 1,799.4 + 1,971.9 = 6,687.1; Automotive 852.2 + 794.4 + 871.6 + 998.2 = 3,516.4; Communications 389.8 + 476.8 + 554.7 + 654.5 = 2,075.8; Consumer 407.5 + 399.8 + 397.8 + 397.2 = 1,602.3. Distributor revenue Q3 FY2026 2,327.1 / 1,592.4 - 1 = +46.1%. Geography: China share of revenue 898.6 / 5,246.4 = 17.1% (FY2017); 1,215.9 / 6,224.7 = 19.5%; 1,316.3 / 5,991.1 = 22.0%; 1,348.0 / 5,603.1 = 24.1%; 1,614.4 / 7,318.3 = 22.1%; 2,563.5 / 12,014.0 = 21.3%; 2,229.6 / 12,305.5 = 18.1%; 2,128.8 / 9,427.2 = 22.6%; 2,858.3 / 11,019.7 = 25.9% (FY2025); China growth 2,858.3 / 2,128.8 - 1 = +34.3%; United States growth 3,238.1 / 2,840.4 - 1 = +14.0%; China over United States 2,858.3 / 3,238.1 = 88%; United States share 3,238.1 / 11,019.7 = 29.4% (FY2025), 4,165.3 / 12,305.5 = 33.8% (FY2023). Customers: distributors at 10% or more FY2024 24% + 12% + 12% = 48%; FY2025 24% + 13% = 37% (a second distributor below 10%). Acquisitions and balance sheet: Linear price 15.8bn / FY2016 revenue 3.42bn = 4.6 times; goodwill FY2017 12,217.5 / FY2016 1,679.1 = 7.3 times; goodwill 1 August 2026 27,988.7 / FY2015 1,636.5 = 17.1 times; Maxim goodwill added 26,918.5 - 12,278.4 = 14,640.1, about $14.6bn; Linear plus Maxim 15.8 + 28.0 = 43.8, about $44bn; goodwill and intangibles (26,945.2 + 8,013.8) / 47,992.7 = 72.8% (1 November 2025); (27,988.7 + 7,468.2 = 35,456.9) / 48,424.4 = 73.2% (1 August 2026); other assets 47,992.7 - 26,945.2 - 8,013.8 = 13,033.7; market value over equity 191.61bn / 33.55bn = 5.7 times; over goodwill 191.61 / 27.99 = 6.8 times; amortisation fall FY2026 to FY2030 1,537.5 - 404.2 = 1,133.3; Empower plus Alif 1.5 + 1.35 + 0.2 = 3.05bn; Empower 1.5 / total assets 48.4 = 3%. Cash: free cash flow = operating cash flow less capital expenditure: FY2015 907.8 - 154.0 = 753.8 (21.9% of revenue); FY2016 1,291.3 - 127.4 = 1,163.9 (34.0%); FY2017 1,154.4 - 204.1 = 950.3 (18.1%); FY2018 2,442.4 - 254.9 = 2,187.5 (35.1%); FY2019 2,253.1 - 275.4 = 1,977.7 (33.0%); FY2020 2,008.5 - 165.7 = 1,842.8 (32.9%); FY2021 2,735.1 - 343.7 = 2,391.4 (32.7%); FY2022 4,475.4 - 699.3 = 3,776.1 (31.4%); FY2023 4,817.6 - 1,261.5 = 3,556.1 (28.9%); FY2024 3,852.5 - 730.5 = 3,122.0 (33.1%); FY2025 4,278.6 / 11,019.7 = 38.8%; TTM August 2026 4,937.5 / 13,881.5 = 36%. Capital expenditure as a share of revenue: FY2015 4.5%, FY2016 3.7%, FY2017 3.9%, FY2018 4.1%, FY2019 4.6%, FY2020 3.0%, FY2021 4.7%, FY2022 699.3 / 12,014.0 = 5.8%, FY2023 1,261.5 / 12,305.5 = 10.3%, FY2024 730.5 / 9,427.2 = 7.7%, FY2025 533.6 / 11,019.7 = 4.8%, TTM 607.8 / 13,881.5 = 4.4%; FY2025 over FY2023 533.6 / 1,261.5 = 42%. Cash returned over free cash flow: FY2021 (1,109.3 dividends + 2,605.1 buybacks) / 2,391.4 = 155%; FY2022 (1,544.6 + 2,577.0) / 3,776.1 = 109%; FY2023 (1,679.1 + 2,964.0) / 3,556.1 = 131%; FY2024 (1,795.5 + 615.6) / 3,122.0 = 77%; FY2025 (1,924.4 + 2,164.6) / 4,278.6 = 96%; TTM 5,170 / 4,937.5 = 105%. Buybacks FY2024 615.6 / FY2023 2,964.0 = 21%, a fall of 79%; FY2021-FY2025 2,605.1 + 2,577.0 + 2,964.0 + 615.6 + 2,164.6 = 10,926.3, about $11bn. Dividends per share over diluted EPS: FY2015 1.57 / 2.20 = 71%; FY2018 1.89 / 4.00 = 47%; FY2020 2.40 / 3.28 = 73%; FY2022 2.97 / 5.25 = 57%; FY2023 3.34 / 6.55 = 51%; FY2024 3.62 / 3.28 = 110%; FY2025 3.89 / 4.56 = 85%. Dividend per share growth (3.89 / 1.57) ^ (1/10) - 1 = 9.5% a year. Shares outstanding 484,565,465 / 496,296,854 - 1 = -2.4%; 484,565,465 / 489,654,097 - 1 = -1.0%. Debt: net debt 1 November 2025 = long-term debt 8,145.1 + commercial paper 446.6 - cash 2,499.4 - short-term investments 1,152.9 = 4,939.4; 1 August 2026 = 6,771.6 + 1,344.9 + 1,005.1 - 2,165.9 - 159.1 = 6,796.6; net debt over trailing free cash flow 6,796.6 / 4,937.5 = 1.4 times; cash and short-term investments 2,499.4 + 1,152.9 = 3,652.3 (FY2025 end) and 2,165.9 + 159.1 = 2,324.9 (1 August 2026); commercial paper 1,005.1 / 446.6 = 2.25 times. Working capital: receivables 2,389.6 / 1,436.1 - 1 = +66.4%; inventories 1,931.5 / 1,656.3 - 1 = +16.6%. Earnings and valuation: trailing net income to August 2026 = FY2025 2,267.3 - nine months FY2025 1,479.6 + nine months FY2026 3,347.3 = 4,135.0; market value 191.61bn / 4,135.0 = 46.3 times; FY2026 EPS build reported 6.83 + 3.14 = 9.97, adjusted 8.99 + 3.86 = 12.85; Q4 adjusted EPS guide low end 3.86 - 0.15 = 3.71. Year-end market value over fiscal-year net income: 17.26bn / 696.9 = 24.8 (FY2015); 32.82bn / 805.4 = 40.8 (FY2017); 31.77bn / 1,507.0 = 21.1 (FY2018); 54.58bn / 1,220.8 = 44.7 (FY2020); 92.34bn / 1,390.4 = 66.4 (FY2021); 83.54bn / 2,748.6 = 30.4 (FY2022); 98.54bn / 3,314.6 = 29.7 (FY2023); 105.44bn / 1,635.3 = 64.5 (FY2024); 132.79bn / 2,267.3 = 58.6 (FY2025). Additional: Q3 FY2025 shares of revenue Industrial 1,293.0 / 2,880.3 = 44.9%, Consumer 375.4 / 2,880.3 = 13.0%; Q3 FY2026 Industrial 1,971.9 / 4,021.9 = 49.0%; Industrial share Q1 FY2025 1,080.7 / 2,423.2 = 44.6%; Industrial Q3 FY2026 over Q1 FY2025 1,971.9 / 1,080.7 = 1.82 times, about 82% higher. Consumer growth Q1 FY2026 399.8 / 314.7 - 1 = +27%; Q2 FY2026 397.8 / 323.1 - 1 = +23%. Return on equity FY2025 2,267.3 / average (35,176.3 + 33,815.8) / 2 = 6.6%; FY2024 1,635.3 / average (35,565.1 + 35,176.3) / 2 = 4.6%. Customer relationships net of amortisation 10,335.9 - 5,311.2 = 5,024.7. Dividends paid 1,924.4 / 491.1 = 3.9 times. Regions FY2025 against FY2023: Japan 989.9 / 1,397.1 - 1 = -29.1%; Europe 2,285.6 / 3,001.9 - 1 = -23.9%; China 2,858.3 / 2,229.6 - 1 = +28.2%; rest of Asia 1,485.3 against 1,423.0; United States 3,238.1 against 4,165.3. Share price 395.43 / 445.91 - 1 = -11.3% from the 52-week high; 445.91 / 223.47 = 2.0 times; price-to-sales end FY2022 83.54bn / 12,014.0 = 7.0; trailing Communications 2,075.8 against FY2022 1,855.3. Competitors: Texas Instruments 2025 free cash flow 2,938 / revenue 17,682 = 16.6%; ADI 38.8% - 16.6% = 22.2 points; ADI revenue 11,019.7 / TI 17,682 = 62%; capital expenditure 4,550 / 533.6 = 8.5 times - end markets, channel and geography. — FY2015-Q3 FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Analog Devices Forms 10-K, 10-Q and results releases, SEC XBRL, and the Texas Instruments 2025 Form 10-K; each operand is stated in the source line.
Sources
Generated September 29, 2026