Analog Devices accelerates revenue growth to 40% on industrial demand
The semiconductor maker reported third-quarter revenue of $4.02 billion, as growth rates climbed for the third consecutive quarter.
Analog Devices (ADI) saw its revenue growth rate accelerate for three straight quarters, reaching 40% year-over-year to $4.02 billion in the third quarter of fiscal 2026. This followed growth of 37% in the second quarter and 30% in the first quarter.
Industrial and data center segments drove the results. Industrial revenue rose to $1.97 billion, representing 49% of total revenue, up from $1.29 billion in the prior-year period. Communications revenue also increased, rising to $654.5 million from $354.8 million a year ago.
Profitability margins expanded alongside the revenue climb. Reported operating margin rose to 40.1% in the third quarter, compared with 38.1% in the second quarter and 31.5% in the first quarter. Adjusted operating margin reached 50.0%, up from 49.0% in the second quarter and 45.5% in the first quarter. Adjusted gross margin was 72.5%, a slight decrease from 73.0% in the second quarter but an increase from 71.2% in the first quarter.
The company returned $1.7 billion to shareholders in the third quarter. This followed $1.3 billion in the second quarter and $1.0 billion in the first quarter.
In May 2026, Analog Devices acquired Empower Semiconductor for $1.5 billion. The transaction resulted in $23.4 million in acquisition-related transaction costs during the third quarter.
Guidance for the fourth quarter indicates continued growth. The company projects revenue of $4.3 billion, plus or minus $100 million. Reported operating margin is projected at 42.6%, plus or minus 150 basis points, while adjusted operating margin is expected to reach 52.0%, plus or minus 100 basis points.