Source Capital 2Q26 Commentary

Analog Devices shares rose during the period after reporting record quarterly results with 37% year-over-year revenue growth, expanding margins, and record bookings across several end markets; investors were further encouraged by the announced acquisition of Empower Semiconductor (closed early July) and management guidance for continued growth into the second half of the year.

“Analog Devices (“ADI”), a leading supplier of analog and mixed-signal semiconductors, benefited mostly from strong demand tied to AI infrastructure, industrial automation, and communications equipment. During the quarter, shares rose after ADI reported record quarterly results, including 37% year-over-year revenue growth, expanding margins, and management pointing to record bookings across several end markets. Investors were further encouraged by the company’s announced acquisition of Empower Semiconductor (closed in early July) and guidance for continued growth into the second half of the year.”