Analog Devices Forecasts Double-Digit Growth Through Fiscal 2027 Driven by Data Center and Industrial Demand
Analog Devices (NASDAQ:ADI) anticipates double-digit growth into fiscal 2027, fueled primarily by strong demand in data centers, aerospace and defense, automated test equipment, and a broader industrial recovery. CFO Rich Puccio highlighted that these high-growth segments now account for about 30% of the company's business and are performing above historical consumption levels. Data center revenue is growing at approximately 100% year-over-year, while aerospace and defense nears an annualized $2 billion run rate. Despite this momentum, more than half of Analog Devices' industrial subsegments remain below pre-pandemic demand levels. The company expects a record gross margin in the fiscal fourth quarter due to strong performance across its portfolio. It is also pursuing growth through design wins and strategic initiatives such as the pending acquisition of Alif Semiconductor, which could contribute meaningfully by 2028. Puccio noted that while inventory rebuilding efforts are underway, accelerating sell-through has offset some balance sheet gains. The company expects gross inventory to rise in Q4 with channel inventory remaining slightly below its target range.
Tickers: $ADI
Topics: aerospace and defense Analog Devices data centers growth forecast industrial recovery