New York, Feb 18, 2026, 10:51 a.m. EST — Regular session
- Analog Devices climbed roughly 4% in morning trading, lifted by quarterly results and guidance that beat expectations.
- The chipmaker is looking for second-quarter revenue to come in around $3.5 billion, topping the $3.23 billion average estimate from analysts.
- Investors are eyeing data-center spending tied to AI, gauging if it’s enough to balance out turbulence in the industrial sector. (Reuters)
Shares of Analog Devices (ADI.O) jumped Wednesday, with the company’s upbeat second-quarter outlook outperforming Wall Street forecasts. The stock advanced even as other chip stocks showed mixed action.
Why does the outlook count? Analog Devices supplies power- and signal-management chips tucked away in factory equipment, vehicles, and communications gear—sectors tied tightly to economic tides and inventory swings. For investors, any shift in orders here usually shows up on their radar fast.
Company executives highlighted data centers as a bright spot. The big cloud providers, they said, are still putting money into AI infrastructure, despite more hesitant spending from other customers.
Analog Devices reported fiscal first-quarter revenue of $3.16 billion, with adjusted diluted EPS hitting $2.46. Industrial led the way—accounting for 47% of total revenue and climbing 38% year over year. As for communications, that segment saw a 63% surge, according to the company’s latest financial tables. Looking ahead, Analog Devices is guiding for second-quarter revenue of $3.5 billion, give or take $100 million, and expects adjusted EPS to land at $2.88, plus or minus 15 cents, for the quarter ending May 2.
CEO Vincent Roche credited a “robust first quarter” for sustaining ADI’s momentum heading into the year. CFO Richard Puccio pointed to ongoing bookings growth, citing industrial strength and “record orders for our Data Center segment.” The board bumped the quarterly dividend up 11% to $1.10 per share, set for payment on March 17 to shareholders on record as of March 3. (Analog Devices)
Analog Devices shares traded around $349.75, up roughly 3.6%. Earlier in premarket, the stock had jumped close to 8%.
Early trading saw a mixed picture among peers. Texas Instruments dropped roughly 0.7%. Microchip Technology edged up around 0.6%, while ON Semiconductor dipped 0.3%.
Still, that optimistic forecast hinges on a pair of fast-moving factors: how quickly data-center projects for generative AI—systems like chatbots that demand serious computing power—actually materialize, and whether industrial buyers keep placing orders, rather than burning through their inventories. A slowdown in either could quickly eat into the buffer suggested by the guidance range.
The company reported net income of $830.8 million for the quarter ending Jan. 31, according to its latest filing. GAAP diluted EPS landed at $1.69. (SEC)
Next, traders turn their attention to what management says about data-center demand and industrial bookings. The higher dividend’s record date—March 3—is also just ahead.
