Analog Devices Raises Q3 Guidance, Revenue and EPS Surpassing Expectations

Analog Devices (ADI) significantly raised its financial guidance for the third quarter of the fiscal year 2026 on Wednesday, expecting adjusted EPS to be between $3.15 and $3.45, which is notably higher than the market expectation of $2.99; revenue is expected to be between $3.8 and $4.0 billion, also significantly exceeding the market expectation of $3.6 billion.

The actual performance for the previous quarter (Q2 of the fiscal year 2026) announced by the company also exceeded expectations across the board: adjusted EPS reached $3.09, surpassing the consensus analyst expectation of $2.89; revenue was $3.62 billion, higher than the market expectation of $3.51 billion.

Reuters points out that the continuous growth in AI infrastructure investment is driving the demand for power management chips, sensors, and other products in data centers and automotive systems. The higher processing speeds and more complex data flows further enhance the importance of analog and mixed-signal chips.

As a global leader in the analog chip sector, ADI's business covers multiple key markets such as industrial, automotive, communications, and consumer electronics. Its performance and guidance exceeding expectations for two consecutive quarters are seen by the market as an important signal of the ongoing recovery in demand for analog chips, and it significantly strengthens investors' confidence in the recovery of downstream demand.

Furthermore, ADI is deeply integrating this demand recovery with its AI power management capabilities. The company announced on Tuesday that it would acquire Empower Semiconductor for approximately $1.5 billion in cash to further strengthen its AI-focused power management product portfolio.