ANALOG DEVICES INC 10-Q

ITEM 1. Financial Statements ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except per share amounts) Three Months Ended Nine Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Revenue $ 4,021,899 $ 2,880,348 $ 10,805,627 $ 7,943,590 Cost of sales 1,314,355 1,090,600 3,613,309 3,111,929 Gross margin 2,707,544 1,789,748 7,192,318 4,831,661 Operating expenses: Research and development 533,480 454,251 1,510,203 1,298,980 Selling, marketing, general and administrative 397,326 325,706 1,105,389 913,171 Amortization of intangibles 187,985 187,415 563,285 562,245 Special charges, net ( 24,216 ) 4,348 23,766 69,980 Total operating expenses 1,094,575 971,720 3,202,643 2,844,376 Operating income: 1,612,969 818,028 3,989,675 1,987,285 Nonoperating expense (income): Interest expense 88,728 79,592 262,692 229,559 Interest income ( 25,377 ) ( 27,083 ) ( 86,199 ) ( 72,295 ) Other, net 3,749 2,110 ( 3,386 ) 5,108 Total nonoperating expense (income) 67,100 54,619 173,107 162,372 Income before income taxes 1,545,869 763,409 3,816,568 1,824,913 Provision for income taxes 205,779 244,891 469,302 345,309 Net income $ 1,340,090 $ 518,518 $ 3,347,266 $ 1,479,604 Shares used to compute earnings per common share – basic 486,021 494,390 487,500 495,560 Shares used to compute earnings per common share – diluted 488,837 496,726 490,317 497,865 Basic earnings per common share $ 2.76 $ 1.05 $ 6.87 $ 2.99 Diluted earnings per common share $ 2.74 $ 1.04 $ 6.83 $ 2.97 See accompanying notes. 1 ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands) Three Months Ended Nine Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Net income $ 1,340,090 $ 518,518 $ 3,347,266 $ 1,479,604 Foreign currency translation adjustments 1,079 364 2,403 ( 548 ) Change in fair value of derivative instruments designated as cash flow hedges, net 1,886 ( 6,359 ) 2,506 11,137 Changes in pension plans, net 187 542 582 1,582 Other comprehensive income (loss) 3,152 ( 5,453 ) 5,491 12,171 Comprehensive income $ 1,343,242 $ 513,065 $ 3,352,757 $ 1,491,775 See accompanying notes. 2 ANALOG DEVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) August 1, 2026 November 1, 2025 ASSETS Current Assets Cash and cash equivalents $ 2,165,870 $ 2,499,406 Short-term investments 159,064 1,152,915 Accounts receivable 2,389,577 1,436,075 Inventories 1,931,496 1,656,323 Prepaid expenses and other current assets 426,523 363,342 Total current assets 7,072,530 7,108,061 Non-current Assets Net property, plant and equipment 3,351,981 3,315,696 Goodwill 27,988,737 26,945,180 Intangible assets, net 7,468,220 8,013,815 Deferred tax assets 1,689,972 1,867,102 Other assets 852,977 742,858 Total non-current assets 41,351,887 40,884,651 TOTAL ASSETS $ 48,424,417 $ 47,992,712 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Accounts payable $ 682,167 $ 543,760 Income taxes payable 461,804 610,370 Debt, current 1,344,855 — Commercial paper notes 1,005,104 446,639 Accrued liabilities 2,162,324 1,645,032 Total current liabilities 5,656,254 3,245,801 Non-current Liabilities Long-term debt 6,771,624 8,145,066 Deferred income taxes 1,837,959 2,163,281 Income taxes payable 90,723 100,963 Other non-current liabilities 516,960 521,846 Total non-current liabilities 9,217,266 10,931,156 Shareholders’ Equity Preferred stock, $ 1.00 par value, 471,934 shares authorized, none outstanding — — Common stock, $ 0.16 2/3 par value, 1,200,000,000 shares authorized, 484,565,465 shares outstanding ( 489,654,097 on November 1, 2025) 80,762 81,611 Capital in excess of par value 21,288,447 23,349,185 Retained earnings 12,330,779 10,539,541 Accumulated other comprehensive loss ( 149,091 ) ( 154,582 ) Total shareholders’ equity 33,550,897 33,815,755 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 48,424,417 $ 47,992,712 See accompanying notes. 3 ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (in thousands) Three Months Ended August 1, 2026 Capital in Accumulated Other Common Stock Excess of Retained Comprehensive Shares Amount Par Value Earnings Loss BALANCE, MAY 2, 2026 487,087 $ 81,183 $ 22,287,095 $ 11,525,998 $ ( 152,243 ) Net income 1,340,090 Dividends declared and paid - $ 1.10 per share ( 535,309 ) Issuance of stock under stock plans and other 360 59 61,625 Stock-based compensation expense 96,255 Other comprehensive income 3,152 Common stock repurchased ( 2,882 ) ( 480 ) ( 1,156,528 ) BALANCE, AUGUST 1, 2026 484,565 $ 80,762 $ 21,288,447 $ 12,330,779 $ ( 149,091 ) Nine Months Ended August 1, 2026 Capital in Accumulated Other Common Stock Excess of Retained Comprehensive Shares Amount Par Value Earnings Loss BALANCE, NOVEMBER 1, 2025 489,654 $ 81,611 $ 23,349,185 $ 10,539,541 $ ( 154,582 ) Net income 3,347,266 Dividends declared and paid - $ 3.19 per share ( 1,556,028 ) Issuance of stock under stock plans and other 2,023 337 120,834 Stock-based compensation expense 263,651 Other comprehensive income 5,491 Common stock repurchased ( 7,112 ) ( 1,186 ) ( 2,445,223 ) BALANCE, AUGUST 1, 2026 484,565 $ 80,762 $ 21,288,447 $ 12,330,779 $ ( 149,091 ) See accompanying notes. 4 Three Months Ended August 2, 2025 Capital in Accumulated Other Common Stock Excess of Retained Comprehensive Shares Amount Par Value Earnings Loss BALANCE, MAY 3, 2025 496,248 $ 82,710 $ 24,885,204 $ 10,210,338 $ ( 167,632 ) Net income 518,518 Dividends declared and paid - $ 0.99 per share ( 490,161 ) Issuance of stock under stock plans and other 388 65 42,702 Stock-based compensation expense 84,703 Other comprehensive loss ( 5,453 ) Common stock repurchased ( 4,681 ) ( 781 ) ( 1,074,371 ) BALANCE, AUGUST 2, 2025 491,955 $ 81,994 $ 23,938,238 $ 10,238,695 $ ( 173,085 ) Nine Months Ended August 2, 2025 Capital in Accumulated Other Common Stock Excess of Retained Comprehensive Shares Amount Par Value Earnings Loss BALANCE, NOVEMBER 2, 2024 496,297 $ 82,718 $ 25,082,243 $ 10,196,612 $ ( 185,256 ) Net income 1,479,604 Dividends declared and paid - $ 2.90 per share ( 1,437,521 ) Issuance of stock under stock plans and other 2,291 382 103,947 Stock-based compensation expense 235,108 Other comprehensive income 12,171 Common stock repurchased ( 6,633 ) ( 1,106 ) ( 1,483,060 ) BALANCE, AUGUST 2, 2025 491,955 $ 81,994 $ 23,938,238 $ 10,238,695 $ ( 173,085 ) See accompanying notes. 5 ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Nine Months Ended August 1, 2026 August 2, 2025 Cash flows from operating activities: Net income $ 3,347,266 $ 1,479,604 Adjustments to reconcile net income to net cash provided by operations: Depreciation 315,298 301,323 Amortization of intangibles 1,160,358 1,202,179 Stock-based compensation expense 263,651 235,108 Deferred income taxes ( 281,941 ) ( 97,318 ) Other ( 19,377 ) ( 1,496 ) Changes in operating assets and liabilities ( 940,740 ) ( 8,008 ) Total adjustments 497,249 1,631,788 Net cash provided by operating activities 3,844,515 3,111,392 Cash flows from investing activities: Purchases of short-term available-for-sale investments — ( 1,150,240 ) Maturities of short-term available-for-sale investments 990,657 372,778 Additions to property, plant and equipment, net ( 392,677 ) ( 318,399 ) Proceeds from sale of property, plant and equipment, net — 58,892 Proceeds from sale of a subsidiary, net 96,592 — Payments for acquisitions, net of cash acquired ( 1,536,049 ) ( 45,652 ) Other ( 32,425 ) ( 13,595 ) Net cash used for investing activities ( 873,902 ) ( 1,096,216 ) Cash flows from financing activities: Proceeds from debt — 1,490,785 Debt repayments — ( 399,998 ) Proceeds from commercial paper notes 13,061,198 6,867,508 Payments of commercial paper notes ( 12,502,732 ) ( 6,866,581 ) Repurchase of common stock ( 2,446,409 ) ( 1,484,166 ) Dividend payments to shareholders ( 1,556,028 ) ( 1,437,521 ) Proceeds from employee stock plans 121,171 104,329 Other 18,651 40,317 Net cash used for financing activities ( 3,304,149 ) ( 1,685,327 ) Net (decrease) increase in cash and cash equivalents ( 333,536 ) 329,849 Cash and cash equivalents at beginning of period 2,499,406 1,991,342 Cash and cash equivalents at end of period $ 2,165,870 $ 2,321,191 See accompanying notes. 6 ANALOG DEVICES, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED AUGUST 1, 2026 (UNAUDITED) (all tabular amounts in thousands except per share amounts and percentages) Note 1 – Basis of Presentation In the opinion of management, the information furnished in the accompanying condensed consolidated financial statements reflects all normal recurring adjustments that are necessary to fairly state the results for these interim periods and should be read in conjunction with Analog Devices, Inc.’s (the Company) Annual Report on Form 10-K for the fiscal year ended November 1, 2025 (fiscal 2025) and related notes. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2026 (fiscal 2026) or any future period. The Company has a 52 - 53 week fiscal year that ends on the Saturday closest to the last day in October. Certain prior-year amounts have been reclassified to conform to the fiscal 2026 presentation. Note 2 – Shareholders’ Equity As of August 1, 2026, the Company’s Board of Directors had authorized the repurchase of an aggregate of $ 26.7 billion of its common stock under its common stock repurchase program and $ 7.4 billion remained available for repurchases under the program. Note 3 – Accumulated Other Comprehensive (Loss) Income The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first nine months of fiscal 2026. Foreign currency translation adjustment Unrealized holding gains/losses on derivatives Pension plans Total November 1, 2025 $ ( 71,700 ) $ ( 69,777 ) $ ( 13,105 ) $ ( 154,582 ) Other comprehensive income before reclassifications 2,403 ( 4,015 ) — ( 1,612 ) Amounts reclassified out of other comprehensive income — 8,275 582 8,857 Tax effects — ( 1,754 ) — ( 1,754 ) Other comprehensive income 2,403 2,506 582 5,491 August 1, 2026 $ ( 69,297 ) $ ( 67,271 ) $ ( 12,523 ) $ ( 149,091 ) The amounts reclassified out of AOCI into the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Shareholders’ Equity with presentation location during each period were as follows: Three Months Ended Nine Months Ended Comprehensive (Loss) Income Component August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Location Unrealized holding gains/losses on derivatives: Currency forwards $ ( 1,586 ) $ 1,616 $ ( 1,514 ) $ 483 Cost of sales ( 810 ) 949 ( 134 ) 220 Research and development ( 1,577 ) 1,606 ( 1,270 ) ( 442 ) Selling, marketing, general and administrative Interest rate derivatives 3,731 3,731 11,193 11,193 Interest expense ( 242 ) 7,902 8,275 11,454 Total before tax 253 ( 1,135 ) ( 1,437 ) ( 2,143 ) Tax Total amounts reclassified out of AOCI, net of tax $ 11 $ 6,767 $ 6,838 $ 9,311 7 Note 4 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Net income $ 1,340,090 $ 518,518 $ 3,347,266 $ 1,479,604 Basic shares: Weighted-average shares outstanding 486,021 494,390 487,500 495,560 Earnings per common share basic: $ 2.76 $ 1.05 $ 6.87 $ 2.99 Diluted shares: Weighted-average shares outstanding 486,021 494,390 487,500 495,560 Assumed exercise of common stock equivalents 2,816 2,336 2,817 2,305 Weighted-average common and common equivalent shares 488,837 496,726 490,317 497,865 Earnings per common share diluted: $ 2.74 $ 1.04 $ 6.83 $ 2.97 Anti-dilutive shares related to: Outstanding stock-based awards — 134 42 125 Note 5 – Special Charges, Net Liabilities related to special charges, net are included in Accrued liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below: Accrued Special Charges Global Repositioning Actions Balance at November 1, 2025 $ 4,115 Employee severance costs, net 29,085 Severance payments ( 1,952 ) Balance at January 31, 2026 $ 31,248 Severance payments ( 17,858 ) Balance at May 2, 2026 $ 13,390 Severance payments ( 6,377 ) Balance at August 1, 2026 $ 7,013 The Company recorded net special charges of $ 32.4 million as part of its Global Repositioning Actions in the nine months ended August 1, 2026. The Global Repositioning Actions were part of a transformation initiative aimed at aligning the Company’s enterprise strategy and organizational design and streamlining its operations to achieve its long-term strategic plan. The special charges include severance costs, in accordance with the Company’s ongoing benefit plan or statutory requirements at foreign locations, related to the termination of certain employees in manufacturing, engineering and selling, marketing, general and administrative roles. During the first quarter of fiscal 2026, the Company entered into a sublease agreement for its leased property in San Jose, California. As a result of the sublease transaction, the Company recorded an impairment charge of $ 15.6 million in net special charges, which represented the excess carrying value of the associated asset group over its estimated fair value. The Company estimated fair value using cash flows from the estimated net sublease rental income discounted at a market rate. During the third quarter of fiscal 2026, the Company completed the sale of a subsidiary in Penang, Malaysia, which included its facility and certain equipment previously classified as held for sale. The Company recorded a gain on this sale of approximately $ 24.2 million in Special charges, net. 8 Note 6 – Industry and Segment Information The Company’s Chief Executive Officer and Chair has been identified as its Chief Operating Decision Maker (CODM). The following table presents a summary of consolidated net income inclusive of significant segment expenses and other expense information provided to the CODM: Three Months Ended Nine Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Revenue $ 4,021,899 $ 2,880,348 $ 10,805,627 $ 7,943,590 Less: Cost of sales, including human capital expenses therein 1,314,355 1,090,600 3,613,309 3,111,929 Operating expenses: Employee compensation costs 695,060 572,258 1,938,338 1,570,972 Amortization of acquired intangible assets 187,985 187,415 563,285 562,245 Research and development related costs (excluding employee compensation costs) 137,557 125,514 416,592 389,440 Special charges, net ( 24,216 ) 4,348 23,766 69,980 Other operating expense (excluding employee compensation costs) (1) 98,189 82,185 260,662 251,739 Nonoperating expense (income) 67,100 54,619 173,107 162,372 Provision for income taxes 205,779 244,891 469,302 345,309 Net income $ 1,340,090 $ 518,518 $ 3,347,266 $ 1,479,604 _______________________________________ (1) Includes depreciation and amortization expenses, facilities expenses, legal expenses, acquisition related transaction costs and other discretionary expenses. Revenue Trends by End Market The following tables summarize revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. The assignment of products to end markets may change over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. Three Months Ended August 1, 2026 August 2, 2025 Revenue % of Revenue* Y/Y% Revenue % of Revenue* Industrial $ 1,971,926 49 % 53 % $ 1,292,988 45 % Automotive 998,227 25 % 16 % 857,146 30 % Communications 654,515 16 % 84 % 354,768 12 % Consumer 397,231 10 % 6 % 375,446 13 % Total revenue $ 4,021,899 100 % 40 % $ 2,880,348 100 % Nine Months Ended August 1, 2026 August 2, 2025 Revenue % of Revenue* Y/Y% Revenue % of Revenue* Industrial $ 5,269,825 49 % 50 % $ 3,512,896 44 % Automotive 2,685,246 25 % 9 % 2,454,845 31 % Communications 1,659,553 15 % 72 % 965,036 12 % Consumer 1,191,003 11 % 18 % 1,010,813 13 % Total revenue $ 10,805,627 100 % 36 % $ 7,943,590 100 % * The sum of the individual percentages may not equal the total due to rounding. 9 Revenue by Sales Channel The following tables summarize revenue by sales channel. The Company sells its products globally through a direct sales force, third-party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time. Three Months Ended August 1, 2026 August 2, 2025 Channel Revenue % of Revenue* Revenue % of Revenue* Distributors $ 2,327,081 58 % $ 1,592,407 55 % Direct customers 1,588,639 39 % 1,240,924 43 % Other 106,179 3 % 47,017 2 % Total revenue $ 4,021,899 100 % $ 2,880,348 100 % Nine Months Ended August 1, 2026 August 2, 2025 Channel Revenue % of Revenue* Revenue % of Revenue* Distributors $ 6,140,687 57 % $ 4,447,959 56 % Direct customers 4,485,859 42 % 3,386,571 43 % Other 179,081 2 % 109,060 1 % Total revenue $ 10,805,627 100 % $ 7,943,590 100 % * The sum of the individual percentages may not equal the total due to rounding. 10 Note 7 – Fair Value Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below, set forth by level, present the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of August 1, 2026 and November 1, 2025. The tables exclude cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. As of August 1, 2026 and November 1, 2025, the Company held $ 1.1 billion and $ 1.4 billion, respectively, of cash that is excluded from the tables below. August 1, 2026 Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 715,175 $ — $ 715,175 Corporate obligations (1) — 338,091 338,091 Short-term investments: Available-for-sale: Corporate obligations (1) — 159,064 159,064 Other assets: Forward foreign currency exchange contracts (2) — 7,256 7,256 Deferred compensation plan investments 128,158 — 128,158 Total assets measured at fair value $ 843,333 $ 504,411 $ 1,347,744 Liabilities Forward foreign currency exchange contracts (2) $ — $ 10,535 $ 10,535 Interest rate derivatives (3) — 42,478 42,478 Total liabilities measured at fair value $ — $ 53,013 $ 53,013 (1) The amortized cost of the Company’s investments classified as available-for-sale as of August 1, 2026 was $ 498.3 million. (2) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company’s master netting arrangements. (3) The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements. 11 November 1, 2025 Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 740,730 $ — $ 740,730 Corporate obligations (1) — 397,707 397,707 Short-term investments (2): Available-for-sale: Corporate obligations (1) — 656,839 656,839 Bank obligations (1) — 496,076 496,076 Other assets: Forward foreign currency exchange contracts (3) — 6,708 6,708 Deferred compensation plan investments 105,188 — 105,188 Total assets measured at fair value $ 845,918 $ 1,557,330 $ 2,403,248 Liabilities Forward foreign currency exchange contracts (3) $ — $ 7,975 $ 7,975 Interest rate derivatives (4) — 12,550 12,550 Total liabilities measured at fair value $ — $ 20,525 $ 20,525 (1) The amortized cost of the Company’s investments classified as available-for-sale as of November 1, 2025 was $ 1.6 billion. (2) Available-for-sale securities are classified as current assets on the Condensed Consolidated Balance Sheets if the securities are available to be converted into cash to fund current operations. (3) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company’s master netting arrangements. (4) The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 8, Derivatives, in these Notes to Condensed Consolidated Financial Statements. Assets and Liabilities Not Recorded at Fair Value on a Recurring Basis San Jose, California leased property asset group — As a result of a sublease transaction involving a leased property in San Jose, California, the Company estimated the fair value of the sublease assets using discounted cash flows from the estimated net sublease rental income discounted at a market rate and recorded an impairment charge which represented the excess carrying value of the asset group associated with the leased property over its estimated fair value. These assets are considered a Level 2 fair value measurement. See Note 5, Special Charges, Net , in these Notes to Condensed Consolidated Financial Statements for additional information. Debt — The table below presents the estimated fair values of certain financial instruments not recorded at fair value on a recurring basis. Given the short tenure of the Company’s commercial paper notes, the carrying value of the outstanding commercial paper notes approximates the fair values, and therefore, are excluded from the table below ($ 1.0 billion and $ 0.4 billion as of August 1, 2026 and November 1, 2025, respectively). The fair values of the senior unsecured notes are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy. 12 August 1, 2026 November 1, 2025 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value 2026 Notes, due December 2026 900,000 897,938 900,000 895,623 2027 Notes, due June 2027 440,212 437,134 440,212 436,916 2028 Notes, due June 2028 850,000 846,187 850,000 856,345 2028 Notes, due October 2028 750,000 705,821 750,000 704,186 2030 Notes, due June 2030 650,000 643,874 650,000 659,834 2031 Notes, due October 2031 1,000,000 872,143 1,000,000 884,390 2032 Notes, due October 2032 300,000 294,449 300,000 301,546 2034 Notes, due April 2034 550,000 544,285 550,000 571,370 2036 Notes, due December 2036 144,278 134,210 144,278 138,756 2041 Notes, due October 2041 750,000 523,880 750,000 555,925 2045 Notes, due December 2045 332,587 304,327 332,587 327,992 2051 Notes, due October 2051 1,000,000 603,881 1,000,000 662,609 2054 Notes, due April 2054 550,000 496,578 550,000 541,087 Total senior unsecured notes $ 8,217,077 $ 7,304,707 $ 8,217,077 $ 7,536,579 Note 8 – Derivatives Foreign Exchange Exposure Management — The total notional amounts of forward foreign currency derivative instruments designated as hedging instruments of cash flow hedges as of August 1, 2026 and November 1, 2025 were $ 495.2 million and $ 297.0 million, respectively, and the fair values of these instruments in the Company’s Condensed Consolidated Balance Sheets were as follows: Fair Value At Balance Sheet Location August 1, 2026 November 1, 2025 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 1,195 $ 4,403 Forward foreign currency exchange contracts Accrued liabilities $ 7,623 $ 4,399 As of August 1, 2026 and November 1, 2025, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $ 455.1 million and $ 207.3 million, respectively, and the fair values of undesignated hedges in the Company’s Condensed Consolidated Balance Sheets were as follows: Fair Value At Balance Sheet Location August 1, 2026 November 1, 2025 Undesignated hedges related to forward foreign currency exchange contracts Prepaid expenses and other current assets $ 6,061 $ 2,305 Undesignated hedges related to forward foreign currency exchange contracts Accrued liabilities $ 2,912 $ 3,576 Interest Rate Exposure Management — The Company does not consider the risk of counterparty default to be significant. The gain or loss on the Company’s interest rate swap transactions attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows: August 1, 2026 November 1, 2025 Balance Sheet Location Loss on Swaps Gain on Note Loss on Swaps Gain on Note Accrued liabilities $ 42,478 $ — $ 12,550 $ — Long-term debt $ — $ 42,478 $ — $ 12,550 For further information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the Condensed Consolidated Statements of Income related to forward foreign currency exchange contracts, see Note 3, Accumulated Other Comprehensive (Loss) Income, in these Notes to Condensed Consolidated Financial Statements. 13 Note 9 – Inventories Inventories at August 1, 2026 and November 1, 2025 were as follows: August 1, 2026 November 1, 2025 Raw materials $ 85,123 $ 70,183 Work in process 1,458,059 1,218,625 Finished goods 388,314 367,515 Total inventories $ 1,931,496 $ 1,656,323 Note 10 – Debt Revolving Credit Agreements On July 2, 2026, the Company entered into a Credit Agreement (the 364 -Day Revolving Credit Agreement) with Bank of America, N.A. as administrative agent and the other banks identified therein as lenders. The 364 -Day Revolving Credit Agreement provides for a 364 -day unsecured revolving credit facility in an aggregate principal amount not to exceed $ 3.0 billion, expiring on July 1, 2027. The 364 -Day Revolving Credit Agreement is in addition to the Fourth Amended and Restated Credit Agreement, dated as of April 11, 2025, with Bank of America, N.A. as administrative agent and the other banks identified therein as lenders. Both agreements contain customary representations and warranties, and affirmative and negative covenants and events of default applicable to the Company and its subsidiaries. As of August 1, 2026, the Company was in compliance with these covenants. Note 11 – Acquisitions Empower Semiconductor On July 7, 2026, the Company completed the acquisition of all of the voting interests of Empower Semiconductor, Inc. (Empower), a provider of integrated voltage regulators and power management solutions, for approximately $ 1.5 billion. The acquisition was accounted for as a business combination. The preliminary purchase price allocation resulted in the recognition of $ 1.0 billion of goodwill, $ 0.6 billion of intangible assets, primarily technology-based, and $ 0.1 billion of deferred tax liabilities. The goodwill is attributable to the expected future economic benefits arising from the acquisition, including the enhancement of the Company’s power technology portfolio. None of the goodwill is expected to be deductible for tax purposes. Revenue and earnings attributable to Empower since the acquisition date were immaterial to the Company's condensed consolidated financial statements. The Company recognized approximately $ 23.4 million of transaction-related costs, including legal, accounting and other related fees that were expensed during the third quarter of fiscal 2026. These costs are included in the Condensed Consolidated Statement of Income in Operating expenses within Selling, marketing, general and administrative expenses. The purchase accounting for the acquisition is preliminary and remains subject to adjustment as the Company completes its valuation of assets acquired and liabilities assumed. The Company expects to complete the purchase accounting within one year of the acquisition date. Note 12 – Goodwill and Intangible Assets Goodwill The following table presents the changes in goodwill during the first nine months of fiscal 2026: Balance as of November 1, 2025 $ 26,945,180 Acquisition of Empower (Note 11) 1,028,880 Net other acquisitions and dispositions 14,677 Balance as of August 1, 2026 $ 27,988,737 14 Intangible Assets As of August 1, 2026 and November 1, 2025, the Company’s intangible assets consisted of the following: August 1, 2026 November 1, 2025 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships $ 10,366,740 $ 5,874,473 $ 10,335,903 $ 5,311,189 Technology-based 8,201,637 5,225,684 7,617,866 4,628,765 Trade-name 72,200 72,200 72,200 72,200 Assembled workforce 1,800 1,800 1,800 1,800 Total $ 18,642,377 $ 11,174,157 $ 18,027,769 $ 10,013,954 Note 13 – Income Taxes The Company’s effective tax rates for the three- and nine-month periods ended August 1, 2026 were below the U.S. statutory tax rate of 21% due to lower statutory tax rates applicable to the Company's operations in the foreign jurisdictions in which it earns income. During fiscal 2025, the Company received an assessment from the U.S. Internal Revenue Service (IRS) for fiscal 2018 and fiscal 2019, totaling approximately $ 267.0 million. The assessment excludes any penalties and interest. The assessment pertains to transfer pricing arrangements between the Company and one of its wholly-owned foreign subsidiaries. The Company firmly disagrees with this assessment and maintains that its transfer pricing is appropriate. Consequently, the Company has not recorded any additional tax liability related to fiscal 2018 and fiscal 2019 in relation to this issue, nor to any other periods. The Company intends to vigorously defend its original tax return position and is preparing for an appeal with the IRS. Should the IRS ultimately prevail regarding its assessments for fiscal 2018 and fiscal 2019, such a resolution, along with any potential impact on subsequent fiscal years, could have a material adverse effect on the Company’s income tax expense and net earnings in future periods. Note 14 – New Accounting Pronouncements Standards Implemented Income Taxes In December 2023, the Federal Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires the disaggregation of information in existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company adopted this ASU in fiscal 2026 and will include required financial statement disclosures in its Annual Report on Form 10-K for fiscal 2026. Standards to Be Implemented Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , requiring public companies to disaggregate key expense categories such as inventory purchases, employee compensation and depreciation in their financial statements. This aims to improve investor insights into company performance. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact adoption will have on its financial statement disclosures. Note 15 – Subsequent Events On August 18, 2026, the Board of Directors of the Company declared a cash dividend of $ 1.10 per outstanding share of common stock. The dividend will be paid on September 15, 2026 to all shareholders of record at the close of business on September 1, 2026 and is expected to total approximately $ 533.0 million. 15