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Analog Devices Beats Q2 Estimates and Moves to Buy Empower for $1.5 Billion

The results and acquisition point to ADI using strong cash flow to expand into higher-efficiency data-center power for AI customers.

Overview

  • Analog Devices reported fiscal second-quarter adjusted EPS of $3.09 and revenue of $3.62 billion, both above expectations and up sharply year over year.
  • The company issued third-quarter guidance that tops Wall Street forecasts with EPS guided to $3.15–$3.45 and revenue guided to $3.8–$4.0 billion.
  • Management said record bookings across Industrial, Automotive, and Communications drove the quarter and underpinned the stronger outlook.
  • ADI agreed to buy Empower Semiconductor for about $1.5 billion to add integrated voltage-regulator technology that moves point-of-load power next to processors, which can cut losses and enable denser server racks for hyperscalers.
  • The Empower deal is subject to standard U.S. regulatory review with a targeted close in the second half of 2026, and ADI pointed to roughly $5.1 billion in trailing-12-month operating cash flow as funding flexibility.