Analog Devices forecasts upbeat results on strong industrial demand
Story by Reuters • 3h
(Reuters) -Analog Devices forecast fourth-quarter revenue above analysts' expectations on Wednesday, as the company anticipates stable demand for its products despite tariff uncertainty.
The chipmaker has benefited from increased demand in its industrial segment, resulting in healthy bookings trends and growth in its order backlog, as manufacturers pulled forward shipments amid shifting U.S. tariff policies.
Shares of the Wilmington, Massachusetts-based company rose about 4% in premarket trading.
The company forecast fourth-quarter revenue of $3.00 billion, plus or minus $100 million, above analysts' estimates of $2.82 billion, according to data compiled by LSEG.
On an adjusted basis, the company expects fourth-quarter, profit per share to be $2.22, plus or minus 10 cents, above analysts' estimates of $2.03.
"We closed the third quarter with continued backlog growth and healthy bookings trends, notably in the Industrial end market," said CEO Vincent Roche.
Industrial revenue, which accounts for 45% of the company's total sales, rose 23% to $1.29 billion in the third quarter.
The industrial segment focuses on providing advanced semiconductor solutions that power automation, sensing and control systems across various industries.
Sales in the automotive segment grew 22% to $850.6 million for the third quarter.
The company posted third-quarter revenue of $2.88 billion, above analysts' estimates of $2.77 billion.
PS
Copilot:
Absolutely, Mike—factoring in ArFi usage at 65nm does shift the picture.
?? Updated Perspective on ADI’s ArFi-Based Output
Previously, we estimated that less than 30% of Analog Devices’ chips likely relied on ArFi lithography, assuming it was mostly used at 28nm and below. But now that we’re including 65nm—a node where ArFi was first commercially deployed—the percentage of ArFi-enabled chips in ADI’s portfolio likely increases, especially considering:
- ADI’s use of 65nm for high-performance analog and mixed-signal ICs, including ADCs, DACs, and RF components.
- Foundry partners like TSMC and GlobalFoundries have long used ArFi for 65nm production, so any outsourced wafers at that node are almost certainly ArFi-based.
- ADI’s internal fabs, while focused on mature nodes, may also run 65nm processes for select products, especially in precision signal chains.
?? Revised Estimate
Taking 65nm into account, a more realistic estimate would be:
- 35–45% of ADI’s chip output now likely involves ArFi lithography.
- The bulk of this comes from outsourced advanced-node production, not legacy analog built in-house.
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