Analog Devices Sees Q3 Revenue of $3.9B, Raises Dividend 11% and Buys Empower
Analog Devices forecast Q3 revenue of $3.9 billion ± $100 million and adjusted EPS of $3.30 ± $0.15, topping analyst estimates of $3.62 billion and $3.00. The company beat Q2 with $3.62 billion revenue and $3.09 adjusted EPS, raised its dividend 11% and agreed to buy Empower Semiconductor for $1.5 billion.
1. Q2 Earnings Beat
Analog Devices reported fiscal second-quarter revenue of $3.62 billion, surpassing analyst forecasts near $3.51 billion, while adjusted EPS reached $3.09 versus estimates around $2.90. GAAP profit totaled $1.18 billion, reflecting record bookings across industrial, automotive and communications markets.
2. Q3 Guidance Outperformance
The company projects third-quarter revenue of $3.9 billion plus or minus $100 million, exceeding the $3.62 billion consensus, and anticipates adjusted EPS of $3.30 ± $0.15 compared with a $3.00 forecast. GAAP EPS guidance for Q3 is set between $2.45 and $2.75 per share.
3. Empower Semiconductor Acquisition
Analog Devices agreed to acquire Empower Semiconductor for approximately $1.5 billion in cash to expand its AI-focused power-management portfolio. The deal is designed to strengthen ADI’s position in high-growth automotive and data-center applications requiring advanced power solutions.
4. Dividend Hike and Share Performance
The board declared a quarterly cash dividend of $1.10 per share, an 11% increase payable June 16 to shareholders of record on June 2. ADI shares have gained about 53% year-to-date and roughly 85% over the past 12 months.