Analog Devices surges on earnings beat, strong Q2 guidance

Investing.com -- Analog Devices, Inc. (NASDAQ: ADI) reported fiscal first quarter earnings that exceeded analyst expectations, with revenue growth across all end markets and a robust outlook that sent shares soaring around 7% following the announcement.

The semiconductor company posted adjusted earnings per share of $2.46 for the quarter ended January 31, 2026, beating analyst estimates of $2.31. Revenue came in at $3.16 billion, surpassing the consensus forecast of $3.11 billion and representing a 30% increase YoY. The Industrial and Communications segments led the growth during the quarter.

For the second quarter, Analog Devices provided guidance well above Wall Street expectations, projecting revenue between $3.4 billion and $3.6 billion, with the $3.5 billion midpoint significantly higher than the analyst consensus of $3.23 billion. The company expects adjusted EPS of $2.73 to $3.03, also comfortably above the $2.46 consensus estimate.

"ADI’s robust first quarter built upon the strong position and momentum with which we entered the year," said Vincent Roche, CEO and Chair. "Our success continues to be the result of relentless innovation to solve our customers toughest problems and deliver enduring business impact."

The company’s adjusted gross margin improved to 71.2% from 68.8% in the same quarter last year, while adjusted operating margin expanded to 45.5% from 40.5%.

Analog Devices also announced an 11% increase in its quarterly dividend to $1.10 per share, marking the twenty-second consecutive year of dividend increases.

CFO Richard Puccio noted, "While the macro and geopolitical backdrop remains challenging, our revenue outlook for the second quarter reflects a new high watermark for ADI, underscoring our strong execution against cyclical and secular growth tailwinds."

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