Advanced Energy Industries (NASDAQ:AEIS) Announces Quarterly Earnings Results, Beats Expectations By $0.53 EPS

Advanced Energy Industries (NASDAQ:AEIS) released its quarterly earnings data on Monday. The electronics maker reported $2.74 EPS for the quarter, beating analysts’ consensus estimates of $2.21 by $0.53, FiscalAI reports. Advanced Energy Industries had a net margin of 10.00% and a return on equity of 17.99%. The company had revenue of $574.10 million during the quarter, compared to the consensus estimate of $544.41 million. Advanced Energy Industries updated its Q3 2026 guidance to 2.750-3.250 EPS.

Here are the key takeaways from Advanced Energy Industries’ conference call:

• Positive Sentiment: Advanced Energy reported record Q2 revenue of $574 million, up 30% year over year, and non-GAAP EPS of $2.74, up 83%; gross margin improved 380 basis points to 41.9% and operating margin reached 21.9%.
• Positive Sentiment: Management raised its 2026 revenue-growth outlook to the low- to mid-30% range, expects record revenue in both Q3 and Q4, and guided to approximately $640 million of Q3 revenue. Data Center Computing growth is now expected to be at least 50% for the full year, while semiconductor revenue is projected to grow nearly 50% year over year in the second half.
• Positive Sentiment: The company cited strong demand from hyperscalers, additional second-wave data-center customers, and future 800-volt power products as key growth vectors for 2027 and beyond; initial 800-volt production revenue is expected in late 2027, with a more meaningful ramp in 2028.
• Positive Sentiment: Advanced Energy believes its new plasma- and system-power products are driving semiconductor design wins and potential market-share gains in etch, deposition, and test applications. Management said it is ahead of its prior share-gain plan and expects new-product revenue to become more significant next year.
• Neutral Sentiment: The company is increasing strategic inventory and capital spending to support customer ramps, with 2026 CapEx now expected at $180 million-$195 million and inventory turns at about 2.5 times. Management still targets 2026 free cash flow at or above 2025 levels, while Thailand’s new factory is expected to generate its first production revenue in Q4.

Advanced Energy Industries Stock Performance

Shares of Advanced Energy Industries stock traded up $6.86 during trading hours on Monday, hitting $296.38. The company’s stock had a trading volume of 1,119,837 shares, compared to its average volume of 819,888. The stock has a market cap of $11.27 billion, a price-to-earnings ratio of 62.40, a P/E/G ratio of 1.22 and a beta of 1.25. Advanced Energy Industries has a twelve month low of $128.40 and a twelve month high of $397.44. The firm has a fifty day moving average of $320.41 and a 200-day moving average of $320.33.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on AEIS. Robert W. Baird upped their price target on Advanced Energy Industries from $360.00 to $380.00 and gave the company an “outperform” rating in a research report on Tuesday, May 5th. Needham & Company LLC lifted their price objective on Advanced Energy Industries from $330.00 to $400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Susquehanna boosted their price objective on Advanced Energy Industries from $430.00 to $535.00 and gave the stock a “positive” rating in a research note on Tuesday, June 30th. Morgan Stanley started coverage on Advanced Energy Industries in a report on Wednesday, July 22nd. They issued an “overweight” rating and a $421.00 target price for the company. Finally, Wall Street Zen raised Advanced Energy Industries from a “hold” rating to a “buy” rating in a research note on Saturday, June 27th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $404.25.

Institutional Trading of Advanced Energy Industries

Several institutional investors and hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC boosted its stake in Advanced Energy Industries by 6.8% during the fourth quarter. CIBC Private Wealth Group LLC now owns 906 shares of the electronics maker’s stock worth $190,000 after buying an additional 58 shares during the period. Principal Securities Inc. raised its stake in shares of Advanced Energy Industries by 8.5% in the 4th quarter. Principal Securities Inc. now owns 1,152 shares of the electronics maker’s stock valued at $241,000 after acquiring an additional 90 shares during the period. UMB Bank n.a. raised its stake in shares of Advanced Energy Industries by 33.2% in the 4th quarter. UMB Bank n.a. now owns 433 shares of the electronics maker’s stock valued at $91,000 after acquiring an additional 108 shares during the period. Maryland State Retirement & Pension System raised its stake in shares of Advanced Energy Industries by 2.2% in the 4th quarter. Maryland State Retirement & Pension System now owns 5,530 shares of the electronics maker’s stock valued at $1,158,000 after acquiring an additional 117 shares during the period. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Advanced Energy Industries in the 4th quarter worth approximately $25,000. 99.67% of the stock is currently owned by hedge funds and other institutional investors.

More Advanced Energy Industries News

Here are the key news stories impacting Advanced Energy Industries this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Advanced Energy reported adjusted EPS of $2.74, above the $2.21 consensus estimate, while revenue reached $574.1 million versus expectations of approximately $544.4 million. Management said both revenue and EPS exceeded the high end of its guidance, with demand strengthening across its markets. Advanced Energy Reports Second Quarter 2026 Results
• Positive Sentiment: Third-quarter guidance was well above analyst forecasts. AEIS expects Q3 2026 EPS of $2.75–$3.25, compared with consensus of $2.34, and revenue of $620 million–$660 million, versus consensus of $569.8 million. The outlook implies continued momentum and gives investors greater confidence in near-term growth.
• Positive Sentiment: Profitability remains solid. The company reported a 17.99% return on equity and a 10.00% net margin, reinforcing the strength of its earnings performance as demand improves.
• Neutral Sentiment: Valuation and technical factors remain considerations. AEIS has a relatively high trailing P/E ratio of 62.4, and its shares are trading below their 50-day and 200-day moving averages. These factors may limit gains or increase volatility even as earnings expectations improve.

About Advanced Energy Industries

Advanced Energy Industries, Inc is a global technology company specializing in precision power conversion, measurement, and control solutions. The company designs and manufactures a broad portfolio of products including high-voltage power supplies, RF and microwave generators, digital power controllers, reactive gas control systems, and thin film measurement instruments. These solutions enable advanced processes in semiconductor fabrication, flat panel display manufacturing, industrial coating, data storage, telecommunications and medical device production.

Founded in 1981 and headquartered in Fort Collins, Colorado, Advanced Energy has grown through strategic product development and international expansion.