Advanced Energy's Semiconductor Sales Hit a Record

The Tip Desk · November 2, 2026 · 2 min read

Third-quarter revenue reached $696 million, 50% above a year earlier, and non-GAAP earnings of $3.65 a share topped the high end of the company's outlook.

Advanced Energy Industries (AEIS), a maker of precision power conversion equipment, reported third-quarter revenue of $696 million, 50% above the year-earlier quarter and above the high end of its guidance, as Semiconductor Equipment and Data Center Computing sales both set records.

Year-over-year growth accelerated from 30% in the second quarter. Sequential sales rose from $574 million.

President and CEO Steve Kelley said revenue in each of the company’s markets grew sequentially and year-over-year, and that strategic investments and execution were enabling the firm to meet strengthening customer demand and deliver higher gross margin.

GAAP net income from continuing operations was $116 million, or $2.80 a share, compared with $55 million, or $1.29 a share, in the second quarter. Non-GAAP net income was $150 million, or $3.65 a share, above the high end of guidance.

GAAP gross margin was 41.5% and non-GAAP gross margin was 42.1%, up from 41.1% and 41.9% in the second quarter. GAAP operating income was $143.2 million, or a 20.6% margin. Non-GAAP operating income was $169.8 million, or a 24.4% margin.

Semiconductor Equipment revenue was $322.2 million. Data Center Computing revenue was $256.2 million. The company said those two markets reached record levels. Industrial and Medical revenue was $90.5 million. Telecom and Networking revenue was $27.5 million.

Cash flow from continuing operations was $66 million, down from a record $86 million in the second quarter. The company paid $4 million in quarterly dividends.

Following the end of the third quarter, Advanced Energy repurchased $30 million of common stock in October at an average price of $240.77 a share.

Kelley said the Thailand factory ramp is on track and that growing revenue contribution from new products is expected in 2027. He said the company is confident in its ability to gain share and outgrow its markets.

For the fourth quarter of 2026, Advanced Energy guides to revenue of $735 million plus or minus $25 million, GAAP earnings from continuing operations of $3.30 a share plus or minus $0.30, and non-GAAP earnings of $3.90 a share plus or minus $0.30.