Analog Devices Reports Record Q2 Results Amid AI Infrastructure Boom
Analog Devices reported record fiscal second-quarter results, raised its guidance, completed the Empower Semiconductor acquisition, and highlighted rapidly growing AI data-center and communications revenues tied to robust infrastructure spending.
Strong Financial Performance
The company reported revenue of $3.62 billion, with year-over-year growth across all end markets, led by Industrial and Communications. ADI's Q2 revenue grew to 29.8%, demonstrating robust demand across its business segments.
Operating cash flow reached $5.1 billion and free cash flow totaled $4.6 billion on a trailing twelve-month basis, representing 40% and 36% of revenue, respectively.
Strategic Acquisition and AI Focus
The company completed the Empower Semiconductor acquisition, a $1.5 billion all-cash deal that strengthens its power management capabilities for AI applications. The combination of easing interest-rate pressures and Analog Devices' expanded role as an AI-infrastructure enabler has sharpened attention on how its power management and RF technologies underpin high-value data-center and industrial applications.
Market Response and Analyst Sentiment
ADI was up 3.5% on June 11, appearing to move higher largely on improved sentiment toward AI infrastructure demand, after fresh signals of aggressive data-center buildouts boosted interest in chip and hardware suppliers.
Analysts maintain "Buy" ratings and raise price targets. The median analyst price target stands at $450.0, with targets ranging from $440 to $515.
Dividend Declaration
The ADI Board of Directors declared a quarterly cash dividend of $1.10 per outstanding share of common stock, to be paid on June 16, 2026 to all shareholders of record at the close of business on June 2, 2026.
Operational Highlights
Record bookings were achieved across ADI's B2B markets of Industrial, Automotive, and Communications. Industrial sales grew 56%, reflecting strong demand in this key segment.