TLDR
- Analog Devices beat Q4 earnings estimates with $2.26 per share versus the expected $2.23
- Quarterly revenue of $3.08 billion exceeded analyst forecasts of $3.02 billion
- Q1 2026 guidance projects $2.29 per share and $3.1 billion in revenue, both above estimates
- Industrial business grew 34% year-over-year to $1.43 billion in the fourth quarter
- Communications division revenue hit $389.8 million, surpassing the $380.60 million forecast
Analog Devices turned in a strong performance for its fourth quarter. The company posted earnings of $2.26 per share, beating the analyst consensus of $2.23.
Revenue reached $3.08 billion for the period. Wall Street had expected $3.02 billion.
The results mark a continuation of the recovery the chipmaker has experienced. After facing a prolonged demand slowdown, business is picking up across key segments.
Management also provided guidance that topped expectations. For the first quarter of fiscal 2026, the company expects earnings between $2.19 and $2.39 per share.
Analysts had projected $2.18 per share. Revenue guidance came in at $3.1 billion, plus or minus $100 million.
That compares favorably to the analyst estimate of $2.96 billion. The guidance suggests momentum is building heading into the new fiscal year.
Industrial Division Leads the Way
The industrial segment delivered impressive growth. Revenue climbed 34% from the same quarter last year to reach $1.43 billion.
This division represents approximately half of Analog Devices’ total business. Customers increased spending on factory automation and defense applications.
Energy infrastructure and digital healthcare investments also contributed to growth. Analysts had forecast $1.44 billion for this segment.
Factory operators are modernizing their facilities with new equipment. Defense contractors continue to invest in advanced systems.
The energy transition is driving demand for power management chips. Healthcare providers are upgrading to digital monitoring systems.
Communications Business Shows Strength
The communications segment posted revenue of $389.8 million. That beat analyst expectations of $380.60 million.
This division produces components for wireless network infrastructure. Equipment makers use these chips to transmit radio signals through cellular networks.
CFO Richard Puccio highlighted the performance during the earnings announcement. He noted “notable strength” in the communications market during Q4.
Booking trends remained healthy throughout the quarter. Growth in the industrial sector continued as expected.
Puccio addressed the current market environment in his comments. He acknowledged that macro uncertainty exists for fiscal 2026.
However, he expressed optimism about the company’s positioning. “We believe we are well positioned to continue capitalizing on the ongoing cyclical recovery,” Puccio said.
Enterprises are opening their wallets again after a period of restraint. Infrastructure spending remains a priority despite economic headwinds.
Tariff concerns linger in the background. But demand has held up better than some feared.
The stock closed at $239.40 ahead of the earnings release. Shares gained 9.29% over the past 12 months but declined 4.74% in the last three months.
Analog Devices received 25 positive earnings estimate revisions in the past 90 days. Just one negative revision came through during that timeframe.
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