TLDR
- ADI posted adjusted EPS of $3.09, beating the $2.90 consensus by $0.19
- Revenue hit $3.62 billion, up 37% year over year, topping the $3.51 billion estimate
- Industrial revenue grew 56%; Communications surged 79% year over year
- Q3 guidance midpoint of $3.30 EPS and $3.9 billion revenue both top Wall Street forecasts
- ADI agreed to acquire power chip maker Empower Semiconductor for $1.5 billion in cash
Analog Devices (ADI) delivered a clean beat across the board in Q2 fiscal 2026, and then went ahead and announced a $1.5 billion acquisition the day before. Not a quiet week for the chipmaker.
$ADI (Analog Devices) #earnings are out: pic.twitter.com/H7wfU4x57t
— The Earnings Correspondent (@earnings_guy) May 20, 2026
The stock was up around 0.4% in premarket trading Wednesday following the results, though it had dipped about 1% in regular trading. ADI has now gained 53% in 2026, riding a wave of demand for analog semiconductors.
Adjusted EPS came in at $3.09, up sharply from $1.85 a year ago. That beat the analyst consensus of $2.89-$2.90 by roughly $0.19. Revenue of $3.62 billion topped the $3.51 billion estimate and marked 37% growth compared to the same period last year.
Growth was broad across all end markets. Industrial — ADI’s largest segment — rose 56% year over year. Communications was the standout, jumping 79%. Both figures point to demand that goes well beyond a single-sector bounce.
CEO Vincent Roche credited “record demand and sharp operational discipline” for the results coming in above the top end of the company’s own outlook. CFO Richard Puccio pointed to record bookings across its B2B markets — Industrial, Automotive, and Communications — as a signal the momentum is holding.
Q3 Guidance Tops Expectations
For Q3 fiscal 2026, ADI guided for adjusted EPS of $3.15 to $3.45, with a midpoint of $3.30. That clears the Wall Street consensus of $3.00. Revenue guidance of $3.8 to $4.0 billion, midpoint $3.9 billion, also beats the $3.61 billion analyst estimate.
That guidance range gives ADI room to land well ahead of what the Street was expecting heading into the print.
On cash, the company generated $872 million in operating cash flow during the quarter, equal to 24% of revenue. Over the trailing twelve months, operating cash flow totaled $5.1 billion, or 40% of revenue. Free cash flow reached $4.6 billion, or 36% of revenue.
Empower Semiconductor Acquisition
The day before earnings, ADI announced it would acquire Empower Semiconductor for $1.5 billion in an all-cash deal. Empower makes power delivery solutions for AI compute, a component that has become increasingly critical inside data centers.
The deal adds another growth angle for ADI beyond its core analog chip business. AI infrastructure buildout has driven demand for more specialized power management solutions, and Empower sits squarely in that space.
Among analog chip peers, Texas Instruments (TXN) rose 0.4% Wednesday, Microchip Technology (MCHP) was up 0.7%, and ON Semiconductor (ON) jumped 1.4%.
ADI’s Q3 guidance midpoint of $3.9 billion in revenue represents continued acceleration from the $3.62 billion reported in Q2.
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