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

Key Points

• Advanced Energy beat expectations: The company reported quarterly EPS of $2.74, $0.53 above consensus, on revenue of $574.1 million versus estimates of $544.4 million. Record revenue rose 30% year over year, while non-GAAP EPS increased 83%.
• Growth outlook strengthened: Management raised its 2026 revenue-growth outlook to the low- to mid-30% range and expects record revenue in both the third and fourth quarters. Data Center Computing growth is now projected at least 50% for the year, supported by strong hyperscaler demand.
• Analyst sentiment remains positive: Several firms raised their price targets, with the consensus rating at “Moderate Buy” and an average target of $404.25. Advanced Energy is also increasing capital spending and inventory to support customer ramps and future 800-volt power products.

Advanced Energy Industries (NASDAQ:AEIS - Get Free Report) issued its quarterly earnings data on Monday. The electronics maker reported $2.74 earnings per share for the quarter, topping the consensus estimate of $2.21 by $0.53, FiscalAI reports. The company had revenue of $574.10 million for the quarter, compared to analysts' expectations of $544.41 million. Advanced Energy Industries had a return on equity of 17.99% and a net margin of 10.00%. 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 Up 2.4%

AEIS stock traded up $6.86 during trading on Monday, hitting $296.38. The company had a trading volume of 1,119,837 shares, compared to its average volume of 819,888. Advanced Energy Industries has a 52-week low of $128.40 and a 52-week high of $397.44. The company has a 50 day simple moving average of $320.41 and a 200-day simple moving average of $320.33. The firm has a market capitalization of $11.27 billion, a P/E ratio of 62.40, a PEG ratio of 1.22 and a beta of 1.25.

Hedge Funds Weigh In On Advanced Energy Industries

Institutional investors have recently modified their holdings of the stock. Bank of America Corp DE boosted its holdings in shares of Advanced Energy Industries by 2.2% in the second quarter. Bank of America Corp DE now owns 946,649 shares of the electronics maker's stock valued at $125,431,000 after purchasing an additional 20,573 shares during the period. Fuller & Thaler Asset Management Inc. lifted its stake in Advanced Energy Industries by 1,734.1% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 427,674 shares of the electronics maker's stock worth $89,542,000 after acquiring an additional 404,356 shares during the period. Bamco Inc. NY grew its holdings in Advanced Energy Industries by 1.9% during the 2nd quarter. Bamco Inc. NY now owns 373,245 shares of the electronics maker's stock worth $49,455,000 after acquiring an additional 6,958 shares in the last quarter. Franklin Resources Inc. increased its position in Advanced Energy Industries by 35.4% during the 3rd quarter. Franklin Resources Inc. now owns 313,658 shares of the electronics maker's stock valued at $53,239,000 after purchasing an additional 82,060 shares during the period. Finally, Wellington Management Group LLP bought a new stake in shares of Advanced Energy Industries in the 3rd quarter valued at about $50,173,000. 99.67% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on AEIS shares. Needham & Company LLC boosted their target price on Advanced Energy Industries from $330.00 to $400.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Cantor Fitzgerald lifted their price objective on shares of Advanced Energy Industries from $400.00 to $450.00 and gave the stock an "overweight" rating in a research note on Monday, June 29th. Wells Fargo & Company upgraded shares of Advanced Energy Industries from an "equal weight" rating to an "overweight" rating and boosted their price objective for the company from $345.00 to $465.00 in a research report on Wednesday, July 1st. Morgan Stanley began coverage on shares of Advanced Energy Industries in a research note on Wednesday, July 22nd. They issued an "overweight" rating and a $421.00 target price on the stock. Finally, Bank of America raised their target price on shares of Advanced Energy Industries from $430.00 to $450.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Advanced Energy Industries currently has a consensus rating of "Moderate Buy" and an average price target of $404.25.

Advanced Energy Industries Company Profile

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.

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