Analyst(s): Brendan Burke
Publication Date: May 27, 2026
Analog Devices’ Q2 FY 2026 results point to sustained demand in industrial and data center-related communications, with pricing and mix supporting margin performance. The planned Empower Semiconductor acquisition signals increased focus on power density and efficiency as AI infrastructure scales.
What is Covered in This Article:
- Analog Devices’ Q2 FY 2026 financial results
- Industrial recovery led by ATE and defense
- Data center power and optical growth drivers
- Automotive content gains in ADAS platforms
- Guidance and Final Thoughts
The News: Analog Devices (Nasdaq: ADI) reported fiscal Q2 FY 2026 results. Revenue was $3.62 billion, up 37% year on year (YoY), versus street consensus of $3.51 billion. By end market, Industrial revenue was $1.80 billion (up 56% YoY), Automotive revenue was $871.6 million (up 2% YoY), Communications revenue was $554.7 million (up 79% YoY), and Consumer revenue was $397.8 million (up 23% YoY). Adjusted operating income was $1.77 billion and adjusted operating margin was 49.0%, up 780 basis points YoY. Adjusted diluted earnings per share (EPS) was $3.09, up 67% YoY, and adjusted gross margin was 73.0%, up 360 basis points YoY.
“ADI’s second quarter revenue and earnings were above the high end of our outlook, reflecting the combination of record demand and sharp operational discipline,” said Vincent Roche, CEO and Chair of Analog Devices. “We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications,” said Richard Puccio, CFO of Analog Devices.
Analog Devices Q2 FY 2026 Earnings Show AI-Linked Data Center, Power Demand
Analyst Take: Analog Devices used a mix of cyclical recovery and secular demand to drive Q2 FY 2026 outcomes, with Industrial rebounding while communications benefited from data center exposure. The quarter reinforced that power delivery and connectivity are becoming larger constraints for AI infrastructure scale. Automotive remained a content-driven story rather than unit-driven growth, with China’s dynamics increasingly influential. The Empower acquisition adds a targeted capability that aligns with where AI server designs are creating near-term engineering bottlenecks.
Industrial Demand Rebuilds Centers on Automation, Test, and Defense
Industrial contributed about half of Q2 FY 2026 revenue and grew meaningfully year on year, with sequential growth across sub-segments. ADI tied the industrial lift to a combination of aerospace and defense strength and a broader pickup in automation and electronic test and measurement demand. The company framed automation as increasingly dependent on edge sensing, signal chain, power management, and real-time connectivity inside digital factories and robotics. It also positioned Electronic Test and Measurement as a beneficiary of shorter product cycles and rising system complexity in areas like AI and EV development. The implication is that industrial growth can persist even if demand remains uneven, because design complexity increases silicon content per system.
Data Center Communications Growth Shifts The Mix Toward Power and Optical
Communications grew quickly in Q2 FY 2026, with the company indicating that data centers now account for more than three-quarters of communications revenue. ADI characterized the year-on-year data center growth as driven in roughly equal measure by its power and optical portfolios. This suggests ADI is not dependent on a single data center vector and can grow with both compute density and interconnect scaling. The company also described power delivery and efficiency as gating factors for AI compute scaling, which supports continued investment and pricing resilience in this part of the portfolio. The high margins of Communications also makes mix a profit driver when data center demand accelerates. Expect ADI to continue prioritizing data center attach points where power density and signal integrity requirements rise most rapidly.
Automotive Growth Remains Content-Led, With China Becoming More Important
Automotive maintained its mid-20% share of Q2 FY 2026 revenue and showed limited year-on-year growth, but the company emphasized ongoing share and content gains in ADAS and next-generation infotainment. ADI pointed to platforms such as GMSL, functionally safe power, and A2B as key drivers for content expansion. Management also noted that EV battery management systems returned to year-on-year growth after an extended period of decline, tied to EV penetration in Europe and China. The company described a late-quarter pickup in China that contributed to upside and expects higher levels of ADAS deployment there, including the potential for L3 adoption timing. The takeaway is that unit softness does not prevent revenue expansion when ADAS, power, and in-vehicle connectivity content continue to rise per vehicle.
Guidance and Final Thoughts
For Q3 FY 2026, Analog Devices guided revenue of $3.9 billion (±$100 million). It guided an adjusted operating margin of approximately 49.0% (±100 basis points), and adjusted EPS of $3.30 (±$0.15). Management also expects the Empower Semiconductor acquisition to close in the second half of FY 2026 and to expand ADI’s power delivery capabilities for AI data centers, with more meaningful revenue contribution expected in FY 2027. The setup keeps ADI positioned for above-seasonal growth if industrial recovery and data center demand remain intact.
See the full press release on Analog Devices’ Q2 FY 2026 financial results on the company website.
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Author Information
Brendan is Research Director, Semiconductors, Supply Chain, and Emerging Tech. He advises clients on strategic initiatives and leads the Futurum Semiconductors Practice. He is an experienced tech industry analyst who has guided tech leaders in identifying market opportunities spanning edge processors, generative AI applications, and hyperscale data centers.
Before joining Futurum, Brendan consulted with global AI leaders and served as a Senior Analyst in Emerging Technology Research at PitchBook. At PitchBook, he developed market intelligence tools for AI, highlighted by one of the industry’s most comprehensive AI semiconductor market landscapes encompassing both public and private companies. He has advised Fortune 100 tech giants, growth-stage innovators, global investors, and leading market research firms. Before PitchBook, he led research teams in tech investment banking and market research.
Brendan is based in Seattle, Washington. He has a Bachelor of Arts Degree from Amherst College.
