Analog Devices, Inc. · ADI · FY2026 Q2 · Calendar Q2 2026

ADI Record Q2 FY26 on Industrial, Data-Center Strength; Empower Deal Adds AI Power TAM

Analog Devices delivered record Q2 FY26 results with revenue of $3.62B (up 37% YoY) and EPS of $3.09, beating consensus on both lines. Growth was led by industrial (50% of revenue, up 56% YoY) and data-center/communications (up over 90% YoY). The Empower Semiconductor acquisition adds IVR and silicon-capacitor technology, expanding ADI's TAM in high-density AI accelerator power. Despite a negative initial market reaction, shares subsequently drifted higher.

Reported Before market openNASDAQTechnology $181.14B market cap
90quality score

Company context

Snapshot as of publication

Analog Devices, Inc. (ADI) is a technology leader specializing in the conception, production, validation, and global marketing of integrated circuits (ICs), software solutions, and advanced subsystems. Their offerings leverage sophisticated analog, mixed-signal, and digital signal processing technologies. The company's comprehensive product lineup features data converters, which are critical for transforming real-world analog signals into digital data and subsequently converting digital data back into analog signals. They also provide power management and reference devices, essential for power conversion, driver supervision, system sequencing, and energy optimization in industries such as automotive, telecommunications, industrial applications, and premium consumer markets. These power ICs are supported by integrated performance, integration, and software design simulation tools for precise power supply development.…

Earnings scorecard

Reported versus consensus
Reported EPS $3.09 Consensus $3
EPS surprise +6.9% Reported versus consensus
Reported revenue $3.62B Consensus $3.51B
Revenue surprise +3.1% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -3.9% Event window
SPY move +1.0% Same window
Abnormal move -4.9% Stock minus SPY
Volume 2.8× Versus trailing sessions
Subsequent drift +9.1% Up to 20 sessions
ADISPY benchmark

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Transcript intelligence

What changed

Q2 FY26 revenue reached a record $3.62B, up 15% sequentially and 37% YoY, beating consensus by 3.1%. EPS of $3.09 beat the $2.89 estimate by 6.9%, with gross margin at 73%. Data-center and communications revenue surged over 90% YoY, driven by optical and power portfolios. ADI announced the acquisition of Empower Semiconductor to add IVR and silicon-capacitor technology. Internal manufacturing capacity has doubled since pre-COVID, positioning ADI to support up to $20B of revenue by 2030.

Guidance delta

maintained

Key takeaways

  • Q2 revenue and EPS both set new records, with margins expanding on favorable mix and utilization.
  • Industrial businesses contributed 50% of revenue and posted 56% YoY growth, driven by aerospace & defense, automation, ETM and energy.
  • Data-center and communications revenue surged over 90% YoY, powered by both optical and power portfolios.
  • Pricing strategy remains volume-focused; average selling prices are 4-5x industry average and are expected to add a few percentage points to growth in 2026.
  • Empower acquisition will enhance ADI's power-delivery platform and open new TAM in high-density AI accelerator market.

Management priorities

  • Integrate Empower's IVR and capacitor technology into ADI product lines, targeting significant revenue contribution by 2027.
  • Continue investing in AI-accelerator power solutions, data-center optics, and high-performance sensing for automation.
  • Maintain capex at 4-6% of revenue to support capacity expansion and technology development.
  • Deliver 100% free-cash-flow return over the long term via dividends and share buybacks.

Related earnings events

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-20T16:22:08.869288+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T15:19:14.196092+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T15:19:14.193399+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.