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Analog Devices is trading higher after delivering modest Q4 (Oct) EPS upside — its smallest beat in two years — but healthy 25.9% yr/yr revenue growth to $3.08 bln and, more importantly, strong upside Q1 (Jan) guidance. The solid print, combined with better-than-seasonal expectations for Q1, is helping lift sentiment.
Segment Highlights:
- Industrial (46% of revs): $1.43 bln, up 34% yr/yr, accelerating from +23% in Q3. ADI is benefiting from both cyclical improvement and secular AI infrastructure demand, which powered a record quarter for its ATE business.
- Automotive (28%): $852.2 mln, up 19% yr/yr and +1% qtr/qtr. Full-year auto grew 16% to an all-time high, driven by rising content in Level 2+ ADAS systems.
- Communications (13%): $390 mln, up 37% yr/yr and +4% qtr/qtr. Data center revenue surpassed a $1 bln run-rate, marking its third consecutive quarter of 50%+ growth, fueled by AI infrastructure strength. Wireless also improved with double-digit gains.
- Consumer (13%): $407.5 mln, up 7% yr/yr — the slowest-growing segment.
- Outlook: Q1 is typically ADI's softest quarter, usually down mid-single digits sequentially, but guidance calls for slight qtr/qtr growth this time. Industrial is expected to be up mid-single digits above seasonal, while Automotive should be down mid-single digits below seasonal, reflecting some tariff and macro uncertainty.
Briefing.com Analyst Insight:
Analog Devices' Q4 results reinforce a narrative of broadening strength, with Industrial acceleration and data-center-driven Communications growth providing clear confirmation that the AI capex cycle is benefiting the company in a meaningful way. The above-seasonal Q1 guide is particularly notable given ADI's usual seasonal softness. Tariff uncertainty in Automotive introduces some near-term risk, but the company's diversified end-market exposure and strengthening secular drivers leave ADI in a favorable position. Shares will likely need a clean break above $250-260 to attract momentum buyers, but the fundamental setup is improving.
