Analog Devices Another Strong Beat-and-Raise on Broad-Based Strength Across All End Markets; Industrial Recovery Broadening Beyond ATE/A&D; Empower Acquisition Closes Vertical Power Gap; Reit. OW

Research evidence excerpt

Analog Devices Another Strong Beat-and-Raise on Broad-Based Strength Across All End Markets; Industrial Recovery Broadening Beyond ATE/A&D; Empower Acquisition Closes Vertical Power Gap; Reit. OW

J P M O R G A N North America Equity Research

22 May 2026

Analog Devices

Another Strong Beat-and-Raise on Broad-Based Overweight

Strength Across All End Markets; Industrial Recovery ADI, ADI US

Broadening Beyond ATE/A&D; Empower Acquisition Price (21 May 26):$384.21

Closes Vertical Power Gap; Reit. OW ▲Price Target (Dec-26):$450.00 Prior (Dec-26):$400.00

This was another strong beat-and-raise from ADI, with the outlook for F3Q (Jul-

Qtr) coming in well above Street expectations on continued broad-based strength Semiconductors & Semiconductor

Capital Equipment / IT Hardwareacross Industrial, Automotive, and Communications – implying nine consecutive

quarters of above-seasonal sequential growth, with momentum looking set to Harlan Sur AC

persist through F2H26 and well into FY27. Communications (+22% Q/Q, +79% (1-415) 315-6700

harlan.sur@jpmorgan.com

Y/Y) was a standout this quarter, led by Data Center (now >75% of Comms)

growing ~90% Y/Y with similar strength across both optical and power portfolios, Mayur Ramdhani

(1-212) 622-1664

while Wireless grew >35% Y/Y on a continuing cyclical recovery. Industrial mayur.ramdhani@jpmorgan.com

finished +20% Q/Q (+56% Y/Y) with broad-based strength across all sub- J.P. Morgan Securities LLC

segments – ATE, Aerospace & Defense (both at new highs), ETM, and the broad

market – and notably Industrial ex-ATE/A&D grew >40% in F1H26, reflecting an

acceleration in the cyclical recovery for the broader portion of Industrial that was Key Changes (FYE Oct)

previously lagging (and still well below prior cycle peaks with lean channel Prev Cur Δ

Adj.