Analog Devices Q3 Earnings Beat on Strong AI Data Center Demand
Analog Devices reported fiscal third-quarter revenue of $4.02 billion, up 40% year-over-year, driven by strong demand for data center and industrial chips. The company also set a record outlook for the fourth quarter with guided revenue between $4.3 billion plus or minus $100 million. Adjusted earnings per share came in at $3.45, exceeding analyst expectations of $3.34. The results reflect growing demand across Analog Devices' product portfolio and regions. The company returned $1.7 billion to shareholders through dividends and buybacks during the quarter and declared a new quarterly dividend of $1.10 per share. Additionally, it announced plans to acquire Empower Semiconductor for $1.5 billion in cash to strengthen its position in AI infrastructure. The acquisition aligns with rising global spending on AI data centers, particularly among major hyperscalers projected to spend between $600 billion and $700 billion in 2026.
Tickers: $ADI
Topics: AI data centers M&A semiconductors