Analog Devices reported higher profit and revenue in its third quarter and delivered an upbeat outlook for the fourth, driven by accelerating demand for data center hardware and industrial chips.

For the three months ended Aug. 1, the semiconductor company on Wednesday posted a rise in net income to $1.34 billion, or $2.74 a share, compared with $518.5 million, or $1.04 a share, in the same quarter a year ago.

Adjusted earnings were $3.45 a share. According to FactSet, analysts were expecting $3.34 a share.

Revenue jumped 40% $4.02 billion, coming in ahead of analyst expectations of a rise to $3.92 billion. Analog Devices credits growth particularly in its data center segment as well as in industrial.

Looking ahead to its fourth quarter, Analog Devices expects revenue to be at $4.3 billion at the midpoint, plus or minus $100 million, with an operating margin of about 42.6% at the midpoint. Analysts expect $4.08 billion.

Earnings per share are expected to be $3.14 at the midpoint of a range of $2.99 and $3.29 a share.

On an adjusted basis, earnings per share are expected at $3.86, the midpoint of a range of $3.71 to $4.01, ahead of forecasts of $3.54 a share.

"Demand continued to strengthen across our product portfolio and regions throughout the third quarter, which is reflected in our record fourth quarter outlook," said Chief Financial Officer Richard Puccio.