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

Advanced Energy Industries (NASDAQ:AEIS) posted its quarterly earnings results on Monday. The electronics maker reported $2.74 earnings per share for the quarter, topping analysts’ consensus estimates of $2.21 by $0.53, FiscalAI reports. The firm had revenue of $574.10 million for the quarter, compared to analyst estimates of $544.41 million. Advanced Energy Industries had a net margin of 10.77% and a return on equity of 21.15%. Advanced Energy Industries’s quarterly revenue was up 30.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.50 earnings per share. 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 15.2%

AEIS stock opened at $341.39 on Wednesday. Advanced Energy Industries has a 52-week low of $128.40 and a 52-week high of $397.44. The stock has a market cap of $12.98 billion, a price-to-earnings ratio of 71.87, a price-to-earnings-growth ratio of 1.24 and a beta of 1.29. The business has a fifty day moving average of $319.87 and a two-hundred day moving average of $321.50.

Institutional Trading of Advanced Energy Industries

A number of hedge funds and other institutional investors have recently modified their holdings of AEIS. Bank of America Corp DE lifted its position in 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 buying an additional 20,573 shares during the last quarter. Fuller & Thaler Asset Management Inc. raised its stake in shares of Advanced Energy Industries by 1,734.1% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 427,674 shares of the electronics maker’s stock valued at $89,542,000 after acquiring an additional 404,356 shares during the period. Bamco Inc. NY lifted its holdings in shares of Advanced Energy Industries by 1.9% in 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 during the last quarter. Franklin Resources Inc. boosted its position in shares of Advanced Energy Industries by 35.4% during the 3rd quarter. Franklin Resources Inc. now owns 313,658 shares of the electronics maker’s stock worth $53,239,000 after purchasing an additional 82,060 shares during the period. Finally, Wellington Management Group LLP acquired a new stake in Advanced Energy Industries in the 3rd quarter valued at approximately $50,173,000. 99.67% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on AEIS. Morgan Stanley boosted their target price on Advanced Energy Industries from $421.00 to $439.00 and gave the stock an “overweight” rating in a report on Tuesday. TD Cowen lifted their price objective on Advanced Energy Industries from $350.00 to $370.00 and gave the stock a “hold” rating in a research report on Tuesday. Weiss Ratings cut Advanced Energy Industries from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Citigroup raised their target price on Advanced Energy Industries from $435.00 to $460.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Wall Street Zen upgraded Advanced Energy Industries from a “hold” rating to a “buy” rating in a report on Saturday, June 27th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Advanced Energy Industries currently has an average rating of “Moderate Buy” and an average target price of $409.50.

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.