Analog Devices, Inc. (NASDAQ:ADI) stock fell Wednesday despite the chipmaker reporting stronger-than-expected fiscal second-quarter 2026 results and announcing a $1.5 billion acquisition of Empower Semiconductor aimed at expanding its AI infrastructure capabilities.
The strong earnings beat likely prompted investors to lock in recent gains.
The acquisition adds integrated voltage regulator and silicon capacitor technologies used in AI data centers and high-performance computing systems to ADI’s portfolio. The deal is expected to close in the second half of 2026, pending regulatory approvals.
Analog Devices Second-Quarter Revenue, Earnings Beat Estimates
ADI reported second-quarter revenue of $3.62 billion, up 37% from a year earlier and above the analyst consensus estimate of $3.51 billion. Adjusted earnings came in at $3.09 per share, topping Wall Street estimates of $2.90 per share.
Industrial revenue rose 56% year over year to $1.8 billion, while communications revenue climbed 79% to $554.73 million. Automotive revenue increased 2% to $871.57 million, and consumer revenue advanced 23% to $397.76 million.
Analog Devices said industrial remained its largest business segment in the fiscal second quarter, accounting for 50% of total revenue, while automotive represented 24%, communications 15% and consumer 11%.
The company also highlighted continued momentum in AI infrastructure, noting that data center now contributes more …