Analog Devices Shares Jump After Blowout Quarter and Upbeat Forecast

This article first appeared on GuruFocus.

Aug 20 - Analog Devices (NASDAQ:ADI) gained roughly 4% on Wednesday after reporting fiscal third-quarter results that topped Wall Street expectations and offering stronger-than-expected guidance for the current quarter. The move came even as most other semiconductor stocks traded lower.

Warning! GuruFocus has detected 11 Warning Signs with ADI.

Revenue in the third quarter rose about 4% above consensus and exceeded the high end of the company's guided range. Communications and Consumer segments delivered notable strength, with sales beating analyst forecasts by 15% and 6%, respectively. Management projected fiscal fourth-quarter revenue to grow 4% sequentially, which is 6% ahead of consensus expectations.

Analysts were quick to weigh in. Wells Fargo reiterated an Equal Weight rating with a $235 price target, noting solid bookings and pointing to forward visibility as a key factor for recovery heading into fiscal 2026. Evercore maintained its Outperform rating with a $280 price target, citing the revenue beats and robust demand outlook. Truist kept its Hold rating and $219 price target, highlighting that tariffs and trade fluctuations still cloud the broader market backdrop.

With macro uncertainty continuing, investors seem buoyed by the fact that Analog Devices is able to move through the changing environment and still show a high level of demand in the most important markets.

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