(Reuters) -Analog Devices ( ADI ) on Tuesday forecast first-quarter profit and revenue above estimates, after beating fourth-quarter expectations, as the chipmaker benefited from strong demand despite tariff uncertainties.

After a prolonged slump in demand, Analog has been seeing a recovery across its business sectors as enterprises loosen budgets and prioritize infrastructure expansion despite tariffs threatening to hike costs and weigh on the market's outlook.

"While macro uncertainty will likely influence the shape of our fiscal 2026, we believe we are well positioned to continue capitalizing on the ongoing cyclical recovery," CFO Richard Puccio said.

The Wilmington, Massachusetts-based chipmaker forecast first-quarter revenue of $3.1 billion, plus or minus $100 million, above analysts' average estimate of $2.96 billion, according to data compiled by LSEG.

Analog Devices ( ADI ) expects quarterly adjusted profit of $2.29 per share, plus or minus 10 cents, compared with estimates of $2.16 per share.

Revenue for its fourth quarter stood at $3.08 billion, beating estimates of $3.01 billion.

Its adjusted profit of $2.26 per share surpassed estimates of $2.22 per share.

"Healthy bookings trends continued in the fourth quarter with growth in Industrial and notable strength in our Communications market," Puccio said.

The company's industrial segment, which accounts for nearly half of its sales, has been a bright spot as customers ramped up investments in factory automation, defense, digital healthcare and energy infrastructure.

The segment's fourth-quarter revenue rose 34% to $1.43 billion from a year ago, while analysts expected $1.44 billion.

Analog Devices' ( ADI ) communications segment, which manufactures equipment for transmitting radio signals through wireless networks, posted quarterly revenue of $389.8 million, beating estimates of $380.60 million.