10-Q · August 3, 2026
Advanced Energy delivered a strong Q2, with revenue up 30.0% year over year to $574.1 million and GAAP operating margin expanding to 16.6% from 7.2%. Growth was led by AI-linked Semiconductor Equipment and Data Center…
Earnings analysis · 10-Q
AEIS earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
Advanced Energy delivered a strong Q3, with revenue of $696.4 million up 21.3% sequentially and 50.4% year over year, while gross and operating margins expanded to 41.5% and 20.6%. GAAP EPS rose to $2.80 but missed…
Read full summary
Advanced Energy delivered a strong Q3, with revenue of $696.4 million up 21.3% sequentially and 50.4% year over year, while gross and operating margins expanded to 41.5% and 20.6%. GAAP EPS rose to $2.80 but missed consensus by $0.17, and free cash flow and segment-level results were not disclosed in the provided filing extract. The Q4 outlook calls for $710 million-$760 million of revenue and $3.00-$3.60 of GAAP EPS, while debt risk declined following settlement of the 2028 Notes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.8
What stood out
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Record revenue materially beat consensus
Q3 revenue reached a record $696.4 million, up $122.4 million, or 21.3%, from $574.0 million in Q2 and up $233.4 million, or 50.4%, from $463.0 million in Q3 2025. Revenue exceeded the $645.15 million consensus estimate by $51.25 million.
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Margins expanded sharply
Gross margin expanded to 41.5%, up 40 basis points sequentially from 41.1% and 390 basis points year over year from 37.6%. Operating margin rose to 20.6%, compared with 16.6% in Q2 and 10.6% in Q3 2025.
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GAAP EPS surged despite estimate miss
GAAP diluted EPS was $2.80, up $1.52, or 118.8%, from $1.28 in Q2 and up $1.60, or 133.3%, from $1.20 in Q3 2025. GAAP EPS was $0.17 below the $2.97 consensus estimate.
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Q4 outlook remains above Q3 revenue
Management's Q4 2026 outlook calls for revenue of $710 million-$760 million and GAAP EPS of $3.00-$3.60; non-GAAP EPS guidance is $3.60-$4.20.
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Near-term debt exposure reduced
The company settled the remaining principal amount of its 2028 Notes after September 30, 2026. Outstanding debt now consists only of the 2031 Notes, which carry a fixed 0% interest rate.
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No control deficiencies reported
Disclosure controls were concluded to be effective as of September 30, 2026, and the company reported no material change in internal control over financial reporting during the quarter.
What to watch
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Additional stock compensation expense
The amendment removing the five-times cap on the rTSR component of performance stock units is expected to generate approximately $10.0 million of additional stock-based compensation expense, including approximately $4.0 million in Q4 2026.
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Refinancing and future borrowing risk
Although the remaining 2028 Notes were settled, the company states that refinancing and future borrowing could be affected by higher rates; its only outstanding debt is the 2031 Notes with a fixed 0% interest rate.
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Capital allocation and liquidity tradeoffs
The company made no share repurchases in Q3 2026. While the program resumed in October 2026, $166.6 million remained authorized at September 30, 2026, creating a potential use of liquidity alongside other capital needs.
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GAAP earnings conversion remains a risk
GAAP EPS of $2.80 missed the $2.97 consensus estimate by $0.17 despite strong revenue and margin performance, highlighting potential volatility from below-operating-line items and non-operating effects.
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No formal risk-factor changes
The 10-Q states there were no material changes to the risk factors disclosed in the 2025 Form 10-K; therefore, no new quantified risk-factor exposure was identified in this filing.
Management's outlook
The filing's outlook, as reported with the quarterly results, calls for Q4 2026 GAAP EPS of $3.00-$3.60 and revenue of $710 million-$760 million. No prior quantitative outlook was provided for comparison; non-GAAP EPS guidance is $3.60-$4.20.
Earlier filings 4
10-Q · May 4, 2026
Advanced Energy Industries (AEIS) reported a robust Q1 2026, with revenues increasing to $511 million, a 26.3% rise from $405 million in Q1 2025. The company's gross margin improved to 39.3%, up from 37.2%, and EPS grew…
10-K · February 13, 2026
Advanced Energy (AEIS) delivered a stronger FY2025 operating performance driven by semiconductor and data-center end markets, continued R&D investment, and ongoing manufacturing consolidation. Management executed a new…
10-Q · August 5, 2025
Advanced Energy reported strong Q2 results: revenue of $441.5 million (up $76.6M or 21.0% versus Q2 2024) and diluted EPS of $0.67 (vs $0.39 prior year). Operating income rose to $31.6 million from $12.9 million and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.