Analog Devices Stock Rises on Earnings. Chip Maker Is ‘Well Positioned’ for 2026.

Analog Devices stock has narrowly underperformed the S&P 500 this year. (Dreamstime)

Key Points

• Analog Devices reports adjusted earnings of $2.26 a share and revenue of $3.08 billion for its fiscal fourth quarter.
• Revenue increases 26% from the previous year, surpassing Wall Street’s estimate of $3 billion.
• The company forecast fiscal first quarter revenue of $3.1 billion, exceeding analysts’ estimates of $2.97 billion.

Shares of Analog Devices rose Tuesday after the chip maker reported better-than-expected quarterly earnings.

The company posted adjusted earnings of $2.26 a share for its fiscal fourth quarter, narrowly ahead of analysts’ consensus estimate of $2.24, according to FactSet. Revenue totaled $3.08 billion, up 26% from last year and above Wall Street’s call for $3 billion.

The stock climbed 3.4%y. On Monday, shares closed up 13% this year—just shy of the S&P 500’s 14% gain.

Analog Devices is benefiting from a recovery in the highly cyclical market for analog semiconductors, which measure things like sound, temperature, and light. In particular, revenue from the company’s industrial-end market, which makes up nearly half of its business, rose 34% year over year.

“Healthy bookings trends continued in the fourth quarter with growth in Industrial and notable strength in our Communications market” said CEO Richard Puccio. “While macro uncertainty will likely influence the shape of our fiscal 2026, we believe we are well positioned to continue capitalizing on the ongoing cyclical recovery and our secular growth opportunities.”

Analog Devices forecast revenue of $3.1 billion, plus or minus $100 million, for the first quarter of fiscal 2026. Analysts had estimated $2.97 billion. Guidance for adjusted earnings also came in higher than expected.

Write to Nate Wolf at nate.wolf@barrons.com