Overview
- Analog Devices, which reported results on Wednesday, Aug. 19, posted fiscal Q3 revenue of $4.02 billion and adjusted EPS of $3.45, both above Wall Street estimates.
- For fiscal Q4 the company guided roughly $4.3 billion in revenue and an adjusted EPS midpoint near $3.86 with an operating margin around the midpoint of 52 percent.
- Management said broad strength in data-center and industrial markets tied to AI infrastructure and power-management chips underpinned the beat and the bullish outlook.
- The firm agreed to buy Empower Semiconductor for $1.5 billion to address data-center power-delivery limits, expects the deal to close in the second half of 2026, and returned $1.7 billion to shareholders while declaring a $1.10 quarterly dividend.
- Analysts and investors have pushed the stock higher this year on the AI thesis but ADI warned that macro, geopolitical, and AI-spending risks could affect future results and make the shares sensitive to any slowdown.