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Research Alert: Adi: Industrial And Data Center Fuel Apr-q Upside; Jul-q Guide Beats

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

ADI posted Apr-Q revenue growth of 37% to $3.623B vs. our 27% forecast, with EPS of $3.09 (+67% Y/Y) exceeding the $2.91 expectation as operating margin expanded 780 bps to 49.0%. Industrial segment led with +56% growth to $1.799B (50% of revenue) while Communications surged 79% to $555M, reflecting broad-based recovery. Strong performance validates ADI's positioning in secular growth areas including AI infrastructure, factory automation, and electrification, with robust bookings across automation, robotics, and industrial IoT applications. Jul-Q guidance of $3.9B revenue and $3.30 EPS significantly exceeds expectations of $3.6B and $3.01. We believe the cyclical recovery shows sustainable momentum with clear operational leverage, as gross margin expanded 360 bps to 73.0% due to improved utilization and a focus on higher-value solutions. With diverse end-market exposure and disciplined short lead times providing resilience, we expect continued strong performance as demand broadens across ADI's portfolio.

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