Advanced Energy Industries (NASDAQ:AEIS) Posts Earnings Results

Advanced Energy Industries (NASDAQ:AEIS) announced its quarterly earnings results on Tuesday. The electronics maker reported $1.94 EPS for the quarter, beating the consensus estimate of $1.76 by $0.18, FiscalAI reports. The company had revenue of $489.40 million for the quarter, compared to the consensus estimate of $473.12 million. Advanced Energy Industries had a return on equity of 14.27% and a net margin of 8.41%.The company’s revenue for the quarter was up 17.8% compared to the same quarter last year. During the same quarter last year, the company posted $1.30 earnings per share. 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 Price Performance

NASDAQ:AEIS traded up $0.64 during mid-day trading on Tuesday, reaching $279.81. The stock had a trading volume of 943,295 shares, compared to its average volume of 828,162. The stock has a market capitalization of $10.56 billion, a P/E ratio of 73.44, a P/E/G ratio of 1.31 and a beta of 1.40. The firm has a 50 day moving average price of $234.35 and a two-hundred day moving average price of $195.93. The company has a debt-to-equity ratio of 0.43, a quick ratio of 3.01 and a current ratio of 4.10. Advanced Energy Industries has a one year low of $75.01 and a one year high of $283.72.

Advanced Energy Industries Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Monday, February 23rd will be issued a $0.10 dividend. 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 dividend payout ratio is presently 10.50%.

Insider Buying and Selling

In related news, Director Tina Donikowski sold 2,257 shares of the 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 completion of the transaction, the director directly owned 8,248 shares of the company’s stock, valued at $1,734,801.84. This represents a 21.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Paul R. Oldham sold 8,174 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $203.11, for a total transaction of $1,660,221.14. Following the sale, the executive vice president directly owned 24,792 shares of the company’s stock, valued at $5,035,503.12. This trade represents a 24.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.20% of the stock is currently owned by company insiders.

Institutional Trading of Advanced Energy Industries

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of America Corp DE boosted its position in shares of Advanced Energy Industries by 2.2% during the 2nd quarter. Bank of America Corp DE now owns 946,649 shares of the electronics maker’s stock valued at $125,431,000 after acquiring an additional 20,573 shares during the last quarter. Bamco Inc. NY grew its position in Advanced Energy Industries by 1.9% in the 2nd quarter. Bamco Inc. NY now owns 373,245 shares of the electronics maker’s stock valued at $49,455,000 after acquiring an additional 6,958 shares during the last quarter. Franklin Resources Inc. increased its stake in Advanced Energy Industries by 35.4% in the 3rd quarter. Franklin Resources Inc. now owns 313,658 shares of the electronics maker’s stock worth $53,239,000 after buying an additional 82,060 shares during the period. Wellington Management Group LLP bought a new stake in shares of Advanced Energy Industries during the third quarter valued at approximately $50,173,000. Finally, Millennium Management LLC raised its holdings in shares of Advanced Energy Industries by 790.8% in the third quarter. Millennium Management LLC now owns 169,797 shares of the electronics maker’s stock valued at $28,889,000 after acquiring an additional 150,736 shares in the last quarter. 99.67% of the stock is currently owned by institutional investors.

Key Advanced Energy Industries News

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

• Positive Sentiment: Q4 results beat expectations: AEIS reported EPS of $1.94 (vs. ~ $1.76–$1.77 consensus) and revenue of $489.4M (vs. ~ $473M expected), with a reported net margin of ~8.4% and ROE ~14.3%. This stronger operating performance is the primary driver of the stock’s gain. Advanced Energy shares jump as Q4 results top expectations
• Positive Sentiment: Management issued raised Q1 2026 guidance: EPS $1.69–$2.19 vs. consensus $1.49, and revenue $480M–$520M vs. consensus ~$468M — signaling continued topline strength and margin confidence into the year. (Guidance announced with the Q4 release.)
• Positive Sentiment: Analyst lift: Stifel raised its price target to $310 and maintained a Buy, giving additional institutional validation to the earnings/guidance beat and supporting further upside sentiment. AEIS price target raised by Stifel
• Neutral Sentiment: Pre-earnings commentary noted demand tailwinds (AI-driven data center spending) offsetting tariff pressures; that backdrop helps explain stronger results but is not new information. AEIS earnings preview
• Neutral Sentiment: Short-interest data reported as showing a large increase but contains inconsistent/zero values and NaNs — appears to be noisy or unreliable and unlikely to have driven meaningful market reaction.
• Negative Sentiment: Valuation is elevated: AEIS trades at a high forward multiple (current reported trailing P/E ~73), which could limit upside if future growth or margins disappoint. Investors should weigh the strong beat/guidance against rich valuation and monitor whether guidance is sustained in upcoming quarters.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Advanced Energy Industries in a research note on Monday, December 29th. Needham & Company LLC increased their price objective on Advanced Energy Industries from $225.00 to $290.00 and gave the stock a “buy” rating in a research report on Friday, January 16th. Susquehanna upgraded shares of Advanced Energy Industries from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 12th. Robert W. Baird set a $190.00 price objective on shares of Advanced Energy Industries in a research report on Monday, October 27th. Finally, Citigroup lifted their price target on shares of Advanced Energy Industries from $167.00 to $255.00 and gave the stock a “buy” rating in a report on Wednesday, November 12th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, Advanced Energy Industries has an average rating of “Moderate Buy” and an average price target of $259.50.

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.