Analog Devices (ADI) U.S. All Stars Conference summary

Business performance and growth outlook

• Achieved seven consecutive quarters of accelerating year-over-year growth, with 41% year-over-year growth anticipated for the current quarter.

• Growth is now broad-based across all end markets and geographies, with industrial, ATE, Aerospace & Defense, and data center segments leading.

• Design win pipeline has grown by double digits in recent years, with 2026 tracking above 2025 levels, especially in data center and Aerospace & Defense.

• Confident in sustaining double-digit growth into 2027, supported by strong bookings, backlog, and design wins.

• Mass market/broad market business, about 15% of industrial, is above corporate gross margin average and is recovering.

End market and segment dynamics

• Aerospace & Defense business nearly doubled to a $2 billion annualized run rate, with expectations for double-digit growth over the next decade.

• ATE business at a $1 billion annualized run rate, benefiting from increased tester complexity driven by AI/data center infrastructure build-out.

• Energy infrastructure/systems business at a $500 million run rate, leveraging battery management and signal chain expertise for data center and grid applications.

• Data center segment at a $2 billion run rate, split evenly between power and optical, with power expected to outpace optical in future growth.

• Automotive segment continues to outgrow unit sales by 15% over five years due to share and content gains in automated driving and immersive cabin systems.

Inventory, supply chain, and pricing

• Inventory levels are being consciously increased, but rapid sell-through keeps channel inventories below target; no broad customer inventory replenishment yet.

• Visibility into future bookings has improved, aiding supply planning and wafer starts.

• Two price increases implemented in 2026 to offset persistent inflation, with the latest applied broadly across all customers.

• No further price increases planned unless input costs rise materially; pricing actions are for cost recovery, not margin expansion.