Shares of Analog Devices (ADI) rose about 9% premarket on Wednesday after fiscal first quarter results and outlook beat estimates.
Q1 Metrics
For the first quarter of fiscal 2026, which ended Jan. 31, revenue surged about 30% year-over-year to $3.16B. Meanwhile, adjusted EPS soared 51% year-over-year to $2.46. Both top and bottom-line numbers surpassed analysts’ expectations.
“During our first quarter, bookings growth continued, driven by broad strength in Industrial and record orders for our Data Center segment,” said CFO Richard Puccio.
The company noted that it returned $1B to shareholders via dividends and share repurchases in the first quarter.
Analog Devices also declared a quarterly dividend of $1.10 per share, an increase of 11.1% from the prior dividend.
Outlook
“While the macro and geopolitical backdrop remains challenging, our revenue outlook for the second quarter reflects a new high watermark for ADI, underscoring our strong execution against cyclical and secular growth tailwinds,” said Puccio.
For the second quarter of fiscal 2026, the company expects revenue of $3.5B, +/- $100M, versus consensus of $3.23B.
Analog Devices expects adjusted EPS to be $2.88, +/- $0.15, compared to a consensus of $2.46.
At the midpoint of the revenue outlook, the company expects a reported operating margin of about 36.4%, +/-150 basis points, or bps, and an adjusted operating margin of around 47.5%, +/-100 bps.
Related stocks: STMicroelectronics (STM) jumped about 4%, while Texas Instruments (TXN) and Microchip Technology (MCHP) each climbed about 3%. NXP Semiconductors (NXPI) rose nearly 2%, while Marvell Technology (MRVL) and Monolithic Power Systems (MPWR) each rose around 1% premarket on Wednesday.