New York, February 19, 2026, 16:02 (ET) — Trading moved into after-hours.
Shares of Analog Devices (ADI.O) slipped 0.7% to close at $343.84 on Thursday, losing ground after their earnings-fueled rally the day before. The stock moved between $339.73 and $353.44 during the session.
Analog Devices, headquartered in Wilmington, Massachusetts, projected second-quarter revenue at roughly $3.5 billion, give or take $100 million. That came in ahead of the $3.23 billion analysts had penciled in, with steady demand coming from both industrial and data-center buyers. “While the macro and geopolitical backdrop remains challenging, our revenue outlook for the second quarter reflects a new high-watermark for ADI,” CFO Richard Puccio said. (Reuters)
First-quarter revenue climbed 30% to $3.16 billion, with adjusted earnings coming in at $2.46 a share, according to a company release. Analog Devices (ADI) announced an 11% increase to its quarterly dividend—it’s now $1.10 per share, payable March 17 to shareholders on record as of March 3. Trailing 12-month free cash flow landed around $4.6 billion. “ADI’s robust first quarter built upon the strong position and momentum with which we entered the year,” CEO Vincent Roche said. (SEC)
Wall Street’s initial response after earnings mostly tilted positive, with a handful of analysts boosting their price targets and a couple shifting their ratings. Needham bumped its rating to “buy” and slapped a $400 target on the stock, matching Susquehanna’s new target. ADI briefly touched $355.36, Investors.com reported. “As operating results continue to improve, we can no longer justify remaining on the sidelines,” wrote Needham’s Quinn Bolton. (Investors)
Chip stocks struggled on Thursday. Texas Instruments lost 2.3%, while Microchip Technology gave up 2.7%. NXP Semiconductors shed 2.9%. The VanEck Semiconductor ETF dipped 0.9%. The iShares Semiconductor ETF was down nearly 1%.
ADI posts “adjusted” numbers—non-GAAP figures that strip out things like acquisition expenses—in a bid to highlight its core performance. Free cash flow, the money left once capital spending is covered, is key: it supports dividends and buybacks if business hits a rough patch.
Investors are left debating: is this just a typical cyclical rebound, or does it hint at something more persistent? Analog chips show up in everything from factory machines to communications hardware to power systems. And this segment usually lags in the demand cycle, rarely leading the way.
The stock, though, reflects expectations for a straightforward rebound. Should industrial spending falter once more, or major cloud buyers pull back on data-center expansion, that rosy forecast might quickly appear more like a peak than a foundation.
U.S. equities slipped Thursday, with investors unsure if the huge sums pouring into AI can actually deliver profits quickly enough to support the sector’s sky-high valuations. “The market is trying to grapple with what business lines are under threat in a material way from AI,” said Keith Buchanan, senior portfolio manager at Globalt Investments. Eyes now shift to Friday’s Personal Consumption Expenditures (PCE) inflation data—the Fed’s key inflation metric. (Reuters)
