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Analog Devices Beats Q4, Lifts Outlook on Industrial and Communications Recovery

Industrial strength signals a cyclical rebound despite tariff and macro uncertainty.

Overview

  • The chipmaker posted adjusted EPS of $2.26 on revenue of $3.08 billion, topping consensus estimates compiled by LSEG.
  • For Q1 fiscal 2026, ADI guided revenue to about $3.1 billion (+/- $100 million) and adjusted EPS to $2.29 (+/- $0.10), both above Wall Street forecasts.
  • Industrial revenue rose 34% year over year to $1.43 billion as customers increased spending on factory automation, defense, digital healthcare, and energy infrastructure.
  • The communications segment delivered $389.8 million in Q4 revenue, exceeding expectations and highlighted by management for notable strength.
  • Fiscal 2025 free cash flow totaled roughly $4.3 billion, with about 96% returned to shareholders via $2.2 billion in buybacks and $1.9 billion in dividends.