Advanced Energy Industries (NASDAQ:AEIS) Releases Earnings Results, Beats Estimates By $0.18 EPS

Advanced Energy Industries (NASDAQ:AEIS) announced its earnings results on Tuesday. The electronics maker reported $1.94 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.18, FiscalAI reports. Advanced Energy Industries had a net margin of 8.25% and a return on equity of 16.02%. The business had revenue of $489.40 million for the quarter, compared to the consensus estimate of $473.12 million. During the same quarter in the prior year, the firm posted $1.30 earnings per share. The business’s revenue for the quarter was up 17.8% on a year-over-year basis. Advanced Energy Industries updated its Q1 2026 guidance to 1.690-2.190 EPS.

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

• The company reported a strong 2025 with $1.8 billion in revenue (up 21%), Q4 revenue at guidance highs, record operating cash flow of $235M, and non-GAAP EPS up 73% to $6.41, underscoring improved profitability and cash generation.
• Data center was a major growth driver (revenue up 107% to $587M), with sequential record quarters, broad design wins (including 800V initiatives), and management now guiding >30% revenue growth for 2026 while expanding capacity in the Philippines, Mexico and Thailand.
• Semiconductor momentum is building—2025 semi revenue reached $840M (up 6%), new technologies eVerest, eVoS, and NavX are converting design wins into early production, and management expects a stronger second half of 2026 as customer forecasts improve.
• Industrial & medical declined 11% in 2025 but showed sequential recovery late in the year; management cites inventory normalization, distributor improvements and a growing design-win pipeline that should support share gains, though macro uncertainty remains.
• Management increased manufacturing capacity (Thailand fit-up adds >$1B potential capacity) and improved gross margin to ~39.7% (240 bps Y/Y), targeting >40% in 2026 and a long-term 43% goal despite tariff headwinds, while maintaining a strong balance sheet (cash $791M).

Advanced Energy Industries Trading Up 10.7%

NASDAQ AEIS opened at $308.77 on Thursday. Advanced Energy Industries has a 1 year low of $75.01 and a 1 year high of $325.69. The company has a debt-to-equity ratio of 0.43, a current ratio of 4.10 and a quick ratio of 3.01. The company has a market capitalization of $11.65 billion, a PE ratio of 80.83, a P/E/G ratio of 1.29 and a beta of 1.41. The company has a fifty day moving average of $237.63 and a 200 day moving average of $197.69.

Advanced Energy Industries Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Monday, February 23rd will be issued a dividend of $0.10 per share. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.1%. Advanced Energy Industries’s payout ratio is 10.47%.

Insider Activity at Advanced Energy Industries

In other Advanced Energy Industries news, EVP Paul R. Oldham sold 8,174 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $203.11, for a total value of $1,660,221.14. Following the completion of the transaction, the executive vice president owned 24,792 shares in the company, valued at approximately $5,035,503.12. This represents a 24.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Tina Donikowski sold 2,257 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $210.33, for a total value of $474,714.81. Following the sale, the director owned 8,248 shares in the company, valued at $1,734,801.84. This trade represents a 21.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.20% of the company’s stock.

Institutional Trading of Advanced Energy Industries

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP purchased a new position in shares of Advanced Energy Industries during the 3rd quarter valued at approximately $50,173,000. Millennium Management LLC raised its position in Advanced Energy Industries by 790.8% during the third quarter. Millennium Management LLC now owns 169,797 shares of the electronics maker’s stock worth $28,889,000 after acquiring an additional 150,736 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in Advanced Energy Industries during the third quarter valued at $21,082,000. Franklin Resources Inc. grew its position in shares of Advanced Energy Industries by 35.4% in the third 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, Squarepoint Ops LLC increased its stake in shares of Advanced Energy Industries by 998.7% during the second quarter. Squarepoint Ops LLC now owns 61,294 shares of the electronics maker’s stock worth $8,121,000 after purchasing an additional 55,715 shares in the last quarter. 99.67% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

AEIS has been the topic of a number of recent analyst reports. Susquehanna increased their target price on Advanced Energy Industries from $300.00 to $375.00 and gave the stock a “positive” rating in a research note on Wednesday. Zacks Research cut shares of Advanced Energy Industries from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 1st. Needham & Company LLC lifted their price objective on shares of Advanced Energy Industries from $290.00 to $330.00 and gave the company a “buy” rating in a report on Wednesday. Bank of America boosted their price objective on shares of Advanced Energy Industries from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, January 22nd. Finally, Robert W. Baird set a $315.00 target price on shares of Advanced Energy Industries in a research report on Thursday. Eight equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Advanced Energy Industries currently has an average rating of “Moderate Buy” and an average price target of $296.50.

Trending Headlines about Advanced Energy Industries

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

• Positive Sentiment: Q4 results beat and guidance raised — AEIS reported $1.94 EPS (vs. ~$1.76 est.) and $489.4M revenue (+17.8% YoY). Management issued Q1 FY2026 EPS guidance of $1.69–$2.19 and revenue guidance above consensus, signaling continued demand and margin expansion. This drove immediate bullish reaction. Advanced Energy Q4 Earnings Beat, Revenues Up Y/Y
• Positive Sentiment: Analyst upgrades and higher targets — Multiple firms (Needham, KeyCorp, others) raised price targets and ratings after the strong quarter, signaling increased sell‑side conviction and supporting upside momentum. Analysts Increase Forecasts After Strong Q4
• Positive Sentiment: End-market tailwinds (AI/Data Centers, industrial & medical) — Company commentary and coverage highlight stronger Data Center computing demand, AI-related opportunities, and pursuit of industrial/medical deals, which support multi‑quarter revenue growth expectations. AI-Fueled Upswing Advanced Energy Eyes Industrial And Medical Deals
• Neutral Sentiment: Investor outreach scheduled — AEIS will present at several conferences (Citi, Susquehanna, Morgan Stanley), which could amplify the quarter’s message but are informational rather than immediate catalysts. Investor Conferences Participation
• Neutral Sentiment: Earnings call materials and transcripts available — Slide deck and call transcripts give more color on product mix and margin drivers for those modeling forward quarters. Useful for diligence but not a new catalyst. Earnings Slide Deck Earnings Call
• Neutral Sentiment: Short interest reporting shows no meaningful data (zeros / reporting artifacts) — not a credible bearish signal based on the available filings.
• Negative Sentiment: Valuation concern — coverage notes the stock’s valuation is elevated after the run; elevated multiples increase the risk of profit‑taking if growth disappoints or guidance for later quarters softens. Advanced Energy Eyes Industrial And Medical Deals As Valuation Stays Elevated

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.