Puccio said data center demand now represents two-thirds of the communications segment, split evenly between power and optical. The company has begun shipping its first 1.6Tb optical module and R&D teams are advancing 3.2Tb solutions to meet hyperscaler requirements.

The automatic test equipment business grew over 40% year-over-year in 2025, driven by high-performance computing and high-bandwidth memory testing needs. Aerospace and defense spending in the U.S. and Europe is fueling growth above the company average, while automation, energy, and healthcare sub-segments remain about 20% below prior peaks.

Approximately 90% of parts now have lead times under 13 weeks, reducing the need for customer buffer stocks. Analog Devices shifted from a seven- to eight-week channel inventory model to holding more stock on its balance sheet, building die bank and finished goods buffers to capture turn-demand opportunities.

Automotive revenue declined only low single digits from peak and recorded back-to-back record years, supported by market share gains and China exposure, which now accounts for one-third of the segment. Price increases were implemented to recapture value amid inflation, with gross margin outlook tied to product mix and near-optimal utilization.