Advanced Energy tops Q3 profit estimates as revenue rises 50%

Advanced Energy (AEIS) said in a results release on Nov. 2 that third-quarter revenue rose 50% from a year earlier to $696.4 million. Non-GAAP earnings per share were $3.65, and both figures topped consensus estimates compiled by Finnhub.

Here's how the company did:

• Non-GAAP EPS: $3.65 vs. $3.11 expected, according to Finnhub
• Revenue: $696.4 million vs. $463.3 million a year earlier, and $657.75 million expected, according to Finnhub
• GAAP EPS from continuing operations: $2.80 per diluted share vs. $1.21 a year earlier

The company said its gross margin reached 41.5% on a GAAP basis and 42.1% on a non-GAAP basis. Gross margin was 37.6% on a GAAP basis a year earlier.

Segment results

Semiconductor Equipment revenue was $322.2 million, up from $196.6 million a year earlier. Data Center Computing revenue was $256.2 million, up from $171.6 million.

According to its SEC filings, revenue has risen in each of the last three quarters, from $463.3 million in the third quarter of 2025 to $574.1 million in the second quarter of 2026.

Fourth-quarter guidance

The company expects fourth-quarter revenue of $735 million, plus or minus $25 million. It expects non-GAAP EPS of $3.90, plus or minus $30 cents, and GAAP EPS from continuing operations of $3.30, plus or minus $30 cents.

Cash and capital returns

Cash flow from continuing operations was $66 million in the quarter. The company paid $4 million in quarterly dividends.

After the quarter ended, the company repurchased $30 million of its common stock at an average price of $240.77 per share in October.

Costs and charges

The company’s second-quarter GAAP results included $32 million, or $0.75 per diluted share, of inducement costs tied to the partial conversion of its 2028 convertible senior notes.

CEO Steve Kelley said, “We delivered record financial results again in the third quarter, with revenue in each of our markets growing sequentially and year-over-year.” He added that the company’s strategic investments and solid execution are enabling it to meet strengthening customer demand.