Advanced Energy Q4 Earnings Beat Estimates, Revenues Up Y/Y

Advanced Energy IndustriesAEIS reported fourth-quarter 2025 non-GAAP earnings of $1.94 per share, beating the Zacks Consensus Estimate by 9.61%. The bottom line jumped 49.2% year over year and 11.5% sequentially. 

Revenues of $489.4 million beat the Zacks Consensus Estimate by 2.98% and increased 17.8% year over year. Sequentially, revenues increased 5.6%.

AEIS’s Q4 Top-Line in Detail

Semiconductor Equipment revenues (43.2% of total revenues) decreased 6.7% year over year to $211.6 million. Sequentially, segment revenues increased 7.6%.

Industrial & Medical revenues (16% of the total revenues) increased 1.8% year over year to $78.2 million. Sequentially, segment revenues increased 9.8%. 

Advanced Energy Industries, Inc. Price, Consensus and EPS Surprise

Advanced Energy Industries, Inc. price-consensus-eps-surprise-chart | Advanced Energy Industries, Inc. Quote

Data Center Computing revenues (36.4% of the total revenues) were $177.9 million, up 100.6% year over year. Sequentially, segment revenues jumped 3.7%.

Telecom & Networking revenues (4.4% of the total revenues) were $21.7 million, down 6.1% year over year. Sequentially, segment revenues decreased 9.2%.

AEIS’ Q4 Operating Results

In the fourth quarter of 2025, the non-GAAP gross margin was 39.7%, up 170 basis points (bps) year over year and 60 bps sequentially. Gross margin benefited from factory closures in China, better factory loading, and lower near-term tariff costs.

Non-GAAP operating expenses were $107.4 million, up 5.5% year over year and 3.9% sequentially. As a percentage of revenues, the figure declined 260 bps year over year and 40 bps quarter over quarter to 21.9% in the reported quarter.

The non-GAAP operating margin was 23.2% compared with 13.7% reported in the year-ago quarter. Sequentially, non-GAAP operating margin expanded 240 bps.

AEIS’ Balance Sheet & Cash Flow

As of Dec. 31, 2025, cash and cash equivalents were $791.2 million compared with $758.6 million as of Sept. 30, 2025.

In the fourth quarter of 2025, cash flow from operations was $235 million, up from $79 million in the third quarter of 2025.

Advanced Energy made dividend payments of $15.6 million in the reported quarter.

AEIS Offers Positive Q1 Guidance

For the first quarter of 2026, Advanced Energy expects revenues of $500 million (+/- $20 million).

Advanced Energy expects non-GAAP earnings of $1.94 per share (+/- 25 cents).

AEIS’ Zacks Rank and Other Key Picks

Advanced Energy currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied MaterialsAMAT, and MKSMKSI. While MKSI sports a Zacks Rank #1 (Strong Buy), Analog Devices and Applied Materials carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices’ shares have gained 60.3% in the past 12-month period. Analog Devices is scheduled to release first-quarter fiscal 2026 results on Feb. 18, 2026.

Applied Materials shares have returned 79.8% in the past 12-month period. AMAT is scheduled to release its fiscal first-quarter 2026 results on Feb. 12, 2026. 

MKS shares have surged 127.7% in the past 12-month period. MKS is set to report its fourth-quarter 2025 results on Feb. 17, 2026.

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