New York, May 20, 2026, 08:08 EDT
- Analog Devices said it expects fiscal Q3 revenue of $3.9 billion, give or take $100 million. That’s above what Wall Street was looking for.
- Adjusted earnings per share for the fiscal second quarter were $3.09. Revenue jumped 37% to $3.62 billion.
- The company is buying Empower Semiconductor for $1.5 billion in cash as it looks to grow in AI power delivery.
Analog Devices gave an upbeat revenue forecast Wednesday and said it would buy Empower Semiconductor for $1.5 billion in cash. The guidance came in ahead of Wall Street targets and the deal adds to signs the AI push is moving into power chips and sensors too.
Timing is a big deal here. AI data centers need more than just graphics chips—they also depend on power-management semiconductors, the chips that handle and convert power inside electronics. Analog Devices is looking to move more of this core technology to big cloud and chip clients.
Revenue jumped 37% to $3.62 billion for the fiscal second quarter ended May 2, compared to last year. Reported diluted EPS was $2.40, more than double a year earlier. Adjusted diluted EPS rose to $3.09 from $1.85, stripping out some costs excluded by management.
The results topped forecasts. The Street was looking for $3.51 billion in revenue and adjusted EPS of $2.90, based on LSEG numbers from Reuters. The company guided fiscal Q3 revenue to $3.9 billion, give or take $100 million—better than the $3.62 billion analysts had in mind. It put adjusted EPS forecast at $3.30, plus or minus 15 cents.
Analog Devices CEO Vincent Roche said the quarter beat the top of the company’s own forecast, citing “record demand.” CFO Richard Puccio called out “record bookings across our B2B markets”—industrial, automotive and communications—saying the pickup wasn’t just in AI. PR Newswire
Industrial sales, which make up half the quarter’s total, climbed 56% to $1.80 billion. Communications revenue was up 79% at $555 million. Automotive, at $872 million, improved just 2% as chipmakers continue to see a mixed market.
Analog Devices is leaning into AI with its deal for Empower. The company said Tuesday it will buy Empower for $1.5 billion in cash, expecting to close in the second half of calendar 2026, pending conditions like U.S. antitrust review. Empower’s silicon capacitors are already shipping. The company is also working with major cloud firms and AI chipmakers on integrated voltage regulators, which bring power conversion closer to processors.
Roche said energy remains “the most persistent constraint” for scaling next-generation systems. Empower CEO Tim Phillips described AI power delivery as “the hardest problem,” adding that the firm’s tech aims at the power bottleneck capping AI throughput. Analog Devices
Analog Devices is moving alongside Texas Instruments in the analog-chip rally that has drawn investor focus to AI data centers and their need for analog parts in power and signal roles, as Reuters noted back in January. Chip stocks held up better on Wednesday ahead of Nvidia’s earnings, with investors watching the numbers as a read on AI demand for the space.
Analog Devices’ stock moved around in early trading but didn’t go far after the latest earnings report. It was mostly flat after the numbers came out, pulling back from an earlier gain on news about Empower. Shares are up roughly 53% this year.
The risk is the market could be pricing AI demand into all chip categories too fast. The Empower deal still needs a green light and execution, and Analog Devices has said the benefits could take longer or may not show up. A slowdown in AI infrastructure spend, or weaker guidance from Nvidia, could hit the premium investors pay for analog chip growth.
