Advanced Energy Lifts Outlook as Semiconductor Sales Accelerate

The Tip Desk · August 3, 2026 · 2 min read

Second-quarter revenue reached $574.1 million, topping the company’s guidance ceiling by $14 million.

Advanced Energy Industries (AEIS), a maker of precision power-conversion systems, reported an 83% increase in adjusted earnings to $2.74 a share as semiconductor-equipment demand drove faster growth.

Revenue rose 30% from a year earlier and 12.3% from the first quarter, accelerating from the prior period’s 4.5% sequential gain. The sales mix shifted toward Semiconductor Equipment as Data Center Computing lost some of its recent momentum.

Non-GAAP earnings increased 31% sequentially. GAAP earnings from continuing operations nearly doubled from a year earlier to $1.29 a share but fell 19% from the first quarter after a $31.8 million debt-conversion charge reduced earnings by $0.75 a share.

Semiconductor Equipment revenue climbed 27% sequentially and 33% from a year earlier to a record $278.3 million, increasing its share of total revenue to about 48.5% from 42.9% in the first quarter. Data Center Computing revenue slipped 1% sequentially to $191.5 million, though it remained 35% above the year-earlier period.

Industrial and Medical revenue rose 11% from the first quarter and 17% from a year earlier to $80.0 million, extending its recovery. Telecom and Networking revenue declined 4% sequentially to $24.3 million while remaining 11% higher year over year.

The stronger semiconductor mix accompanied wider profitability. GAAP gross margin expanded to 41.1% from 39.3% in the first quarter, while non-GAAP operating margin reached 21.9%, up from 19.1% sequentially and 14.6% a year earlier.

For the third quarter, Advanced Energy expects revenue of $640 million at the midpoint, GAAP earnings of $2.38 a share and non-GAAP earnings of $3.00 a share, all above the preceding quarter’s outlook midpoints. Cash flow from continuing operations swung to a record $86 million from a $6 million outflow in the first quarter, giving the company stronger cash generation as its outlook stepped higher.