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Analog Devices Raises Fourth-Quarter Outlook as AI Power Demand Accelerates
Analog Devices forecast fiscal fourth quarter revenue of $4.3 billion, plus or minus $100 million, and adjusted EPS of $3.86—both above analyst expectations as AI infrastructure drives demand for power management chips. Fiscal third quarter revenue reached $4.02 billion versus estimates of roughly $3.92–$3.93 billio...
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Key takeaways
- Analog Devices forecast fiscal fourth quarter revenue of $4.3 billion, plus or minus $100 million, and adjusted EPS of $3.86—both above analyst expectations as AI infrastructure drives demand for power management chips.
- Fiscal third quarter revenue reached $4.02 billion versus estimates of roughly $3.92–$3.93 billion, while adjusted EPS of $3.45 topped the $3.34 consensus.
- The supplied reports disagree on the immediate share price reaction, describing it as flat or lower in premarket trading; the often cited 5.6% figure comes from an unrelated 2024 report and should not be used here.
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openai.comCreate a landscape editorial hero image for this Studio Global article: What did Analog Devices forecast for fourth-quarter revenue and adjusted earnings per share, how did its third-quarter revenue and adjusted. Article summary: Analog Devices forecast fiscal fourth-quarter revenue of $4.3 billion, plus or minus $100 million, and adjusted EPS of $3.86—both above Wall Street expectations. [4][6] - Fiscal third-quarter revenue was $4.02 billion, a. Topic tags: general, news, general web. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fake numbers,
Analog Devices delivered a stronger-than-expected fiscal third quarter and issued an upbeat fourth-quarter forecast, as demand grows for the chips that help manage power and move data through AI infrastructure. The company expects fiscal fourth-quarter revenue of $4.3 billion, plus or minus $100 million, and adjusted earnings per share of $3.86—both above the analyst estimates cited in the reports. 4
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Key numbers from the report
- Fiscal Q3 revenue: $4.02 billion, ahead of analyst estimates of approximately $3.92 billion to $3.93 billion.
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- Fiscal Q3 adjusted EPS: $3.45, compared with a consensus estimate of about $3.34.
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- Fiscal Q4 revenue outlook: $4.3 billion, plus or minus $100 million.
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- Fiscal Q4 adjusted EPS outlook: $3.86, with a range of roughly $3.71 to $4.01 based on the company’s stated tolerance.
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Analyst estimates vary slightly by source, but the direction is consistent: ADI’s fourth-quarter revenue and adjusted-EPS outlook was above expectations. The cited consensus figures range from about $4.07 billion to $4.08 billion for revenue and $3.54 to $3.55 for adjusted EPS. 6
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Why AI is increasing demand for ADI’s power chips
The central growth driver is the expansion of AI computing. AI data centers require substantial amounts of electricity, along with components that regulate power and support the movement of large volumes of data. Reuters reported that ADI is benefiting from investment in AI-driven computing and demand for power-management chips used in data centers and industrial applications. 1
ADI CEO and Chair Vincent Roche described power availability as a central constraint for AI infrastructure. That makes power management more than a supporting function: it is part of the infrastructure required to deploy increasingly power-hungry computing systems. 5
The company’s opportunity extends beyond a single chip category. ADI’s AI-related technologies include power management, optical networking, monitoring and control, according to an earnings-call summary. The company expects strong double-digit growth in its data-center and energy markets through at least 2030, although that outlook remains a management expectation rather than a guarantee. 3
Where Analog Devices’ components are used
ADI sells components across several end markets, including:
- Data centers, where chips help manage power and data movement
- Industrial equipment, including systems that require monitoring, measurement and control
- Automotive applications
- Communications equipment
- Consumer products
This broad customer base matters because it gives ADI exposure to both the AI infrastructure cycle and demand in established industrial, automotive, communications and consumer markets. The company said fiscal third-quarter growth was broad-based across those markets, with data center and industrial leading the results. 3
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What Vincent Roche said about ADI’s performance
Roche said ADI had delivered a strong third quarter and exceeded the midpoint of its revenue, margin and earnings outlook through broad-based demand. The company’s fiscal Q3 revenue rose 11% sequentially and 40% year over year, according to the company’s release and earnings-call coverage. 3
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His broader message was that ADI is positioned for the AI era because its power-management and signal-processing technologies address infrastructure requirements that become more important as AI systems scale. That positioning is supported by the company’s current demand trends, but it is still exposed to the risks management identified around macroeconomic conditions, geopolitics and the pace of AI spending. 4
What happened to ADI shares?
The available reporting does not establish one consistent immediate share-price reaction for this fiscal Q3 2026 announcement. One report described shares as flat in premarket trading, while another headline said they dipped after the results and outlook. 6
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A separate source reports a 5.6% premarket rally, but its figures refer to a different 2024 Analog Devices earnings release, including $2.31 billion in revenue and $1.58 in adjusted EPS. Those numbers do not match the fiscal Q3 2026 results and should not be presented as the reaction to this announcement. 13
The clearer takeaway is the earnings signal: ADI beat third-quarter expectations and guided to another record-level revenue quarter, with AI-related power demand helping support the outlook. 2
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What is the short answer to "Analog Devices Raises Fourth-Quarter Outlook as AI Power Demand Accelerates"?
Analog Devices forecast fiscal fourth quarter revenue of $4.3 billion, plus or minus $100 million, and adjusted EPS of $3.86—both above analyst expectations as AI infrastructure drives demand for power management chips.
What are the key points to validate first?
Analog Devices forecast fiscal fourth quarter revenue of $4.3 billion, plus or minus $100 million, and adjusted EPS of $3.86—both above analyst expectations as AI infrastructure drives demand for power management chips. Fiscal third quarter revenue reached $4.02 billion versus estimates of roughly $3.92–$3.93 billion, while adjusted EPS of $3.45 topped the $3.34 consensus.
What should I do next in practice?
The supplied reports disagree on the immediate share price reaction, describing it as flat or lower in premarket trading; the often cited 5.6% figure comes from an unrelated 2024 report and should not be used here.