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Analog Devices sees 40% revenue growth in automated test equipment segment
Thursday, February 19, 2026 at 12:27 PM
Analog Devices has reported a 40% increase in revenue for its automated test equipment (ATE) segment, signaling strong demand for semiconductor testing solutions.
Context
Analog Devices recently reported that its automated test equipment (ATE) revenue grew by approximately 40% in fiscal 2025, with growth further accelerating in the first quarter of 2026. This surge helped the company achieve record quarterly performance within its Industrial segment, which currently accounts for 47% of total sales. Overall revenue for the quarter reached $3.16 billion, a 30% year-over-year increase that significantly exceeded market expectations.
This expansion is being primarily driven by the intensive performance requirements of the generative AI market. Analog Devices has positioned its ATE portfolio as a critical component in the production of complex AI hardware, including digital SoC, memory, and high-speed RF devices. Together with its data center business, these AI-focused sectors now contribute roughly 20% of the company’s total revenue, representing a $2 billion annual run rate. Management expects this momentum to persist into the second quarter of 2026, signaling a robust demand phase for the semiconductor supply chain as chip testing complexity continues to escalate.
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