Double-driving of the Industrial and AI sectors, Analog Devices, Inc. (ADI.US) achieves record-setting Q1 financial report, with Q2 guidance far exceeding expectations.

Analog Devices, Inc. (ADI.US), a giant in the simulation chip industry, has released its performance report for the first quarter of fiscal year 2026. The report shows that as of January 31, 2026, the company achieved a revenue of $3.16 billion in the quarter, a significant increase of 30% compared to the same period last year. This performance not only set a new quarterly record in nearly two years, but also significantly exceeded the general expectations of Wall Street analysts. Benefiting from efficient cost management and an increase in shipments of high value-added products, the company's adjusted gross profit margin further increased to 64.7%, achieving a net profit of $830.8 million, demonstrating strong profitability resilience. Diluted earnings per share were $1.69, a 117% increase from $0.78 in the same period last year. While improving profitability, Analog Devices, Inc. once again strengthened its long-term commitment to shareholder returns. The company's board of directors announced an 11% increase in the quarterly dividend to $1.10 per share, marking the 22nd consecutive year of dividend growth. In terms of business DRIVE, the strong demand for high-performance analog power management chips in industrial automation transformation and data centers has become the core support of this round of performance surge. In particular, the acceleration of artificial intelligence (AI) infrastructure construction directly drove the influx of orders for the company's high-precision signal chain and power product portfolio, enabling the company to quickly break away from the previous downturn in the semiconductor industry and enter an upward trend. "In the first quarter, orders continued to grow, driven by strong performance in the industrial sector and record orders in the data center sector. Although the macro and GEO Group Inc. political backgrounds remain challenging, our revenue expectations for the second quarter reflect Analog Devices, Inc.'s new highs in the semiconductor industry, highlighting our strong execution in both cyclical and long-term growth drivers," said Chief Financial Officer Richard Puccio. Looking ahead, the management of Analog Devices, Inc. maintains a highly optimistic outlook on the market prospects. In the subsequent earnings call, the company gave a very strong guidance for the second quarter of fiscal year 2026, with expected quarterly revenue reaching around $3.5 billion, far exceeding the market's previous forecast of $3.23 billion. Supported by this positive news, the stock price of Analog Devices, Inc. had a strong reaction during the trading hours of the U.S. stock market, surging nearly 8% in pre-market trading, and as of the time of writing, the stock was up 5.53% pre-market at $355.31.