Advanced Energy Industries (NASDAQ:AEIS) Issues Quarterly Earnings Results

Advanced Energy Industries (NASDAQ:AEIS) announced its earnings results on Monday. The electronics maker reported $2.74 EPS for the quarter, topping 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 business 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 Up 2.4%

Shares of NASDAQ:AEIS traded up $6.86 during midday trading on Monday, reaching $296.38. The company’s stock had a trading volume of 1,119,837 shares, compared to its average volume of 819,888. The firm has a market capitalization of $11.27 billion, a PE 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 stock has a fifty day moving average of $320.41 and a 200 day moving average of $320.33.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on AEIS shares. Needham & Company LLC raised their target price on shares of Advanced Energy Industries from $330.00 to $400.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Morgan Stanley initiated coverage on shares of Advanced Energy Industries in a research report on Wednesday, July 22nd. They issued an “overweight” rating and a $421.00 price objective for the company. TD Cowen boosted their price objective on shares of Advanced Energy Industries from $300.00 to $350.00 and gave the company a “hold” rating in a report on Tuesday, May 5th. Susquehanna lifted their price target on Advanced Energy Industries from $430.00 to $535.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. Finally, Bank of America increased their price objective on Advanced Energy Industries from $430.00 to $450.00 and gave the company 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 issued a Hold rating to the company. According to MarketBeat, Advanced Energy Industries has an average rating of “Moderate Buy” and an average price target of $404.25.

Institutional Investors Weigh In On Advanced Energy Industries

Several hedge funds have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Advanced Energy Industries by 18.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 280,219 shares of the electronics maker’s stock valued at $58,670,000 after buying an additional 44,590 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in Advanced Energy Industries by 22.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 2,694 shares of the electronics maker’s stock worth $564,000 after buying an additional 498 shares in the last quarter. First Citizens Bank & Trust Co. boosted its holdings in Advanced Energy Industries by 3.7% during the fourth quarter. First Citizens Bank & Trust Co. now owns 4,852 shares of the electronics maker’s stock worth $1,016,000 after buying an additional 171 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its position in Advanced Energy Industries by 1,734.1% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 427,674 shares of the electronics maker’s stock valued at $89,542,000 after buying an additional 404,356 shares during the period. Finally, NewEdge Advisors LLC increased its holdings in Advanced Energy Industries by 224.8% in the fourth quarter. NewEdge Advisors LLC now owns 1,257 shares of the electronics maker’s stock valued at $263,000 after buying an additional 870 shares in the last quarter. 99.67% of the stock is owned by hedge funds and other institutional investors.

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.