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For the third quarter of 2026, Advanced Energy expects revenues of $640 million, plus or minus $20 million. Non-GAAP earnings are projected to be $3 per share, plus or minus 25 cents.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $646.39 million, indicating growth of 39.52% from the figure reported in the year-ago quarter.
The consensus mark for earnings is currently pegged at $3.06 per share, which has been unchanged over the past 30 days. The figure indicates a 75.86% increase from the year-ago quarter’s reported figure.
Advanced Energy Industries, Inc. Price and EPS Surprise
Advanced Energy beat the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering an average surprise of 14.79%.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced AEIS’s Q3 2026 Performance
Advanced Energy’s third-quarter 2026 performance is expected to have benefited from robust demand for semiconductor manufacturing equipment, accelerating investments in artificial intelligence (AI) data center infrastructure, improving industrial and medical market conditions and increasing adoption of next-generation power solutions. Higher production volumes, favorable product mix and improved manufacturing efficiencies are also likely to have supported profitability in the to-be-reported quarter.
The Semiconductor business is likely to have benefited from strong demand for leading-edge memory and logic manufacturing, driven by increasing investments in advanced semiconductor technologies. Rising etch and deposition intensity, particularly in advanced DRAM, NAND and logic processes, is expected to have supported demand for Advanced Energy’s precision power solutions. The company’s eVerest and eVoS plasma power platforms are gaining traction due to their improved yield and throughput capabilities. Production ramps of existing products and new design wins in plasma and system power applications are expected to have supported growth in the quarter to be reported. Management anticipates semiconductor revenues to increase nearly 50% year over year in the second half of 2026.
The Data Center Computing business is expected to have benefited from accelerating hyperscaler investments in AI infrastructure and growing demand for high-efficiency, high-density power solutions. Resolution of downstream supply-chain constraints, increasing deployments of next-generation AI computing platforms and expanding engagements with existing hyperscale customers are likely to have driven sequential revenue growth.
The Industrial & Medical business is likely to have benefited from recovering market conditions, improving distributor demand and production ramps of previously secured design wins. Strength in test and measurement, factory automation, robotics, aerospace and defense, medical imaging and electrosurgery applications is expected to have supported sequential revenue growth. Increased factory output and improving order trends are additional positives.
However, customer concentration, inventory and capex execution, tariffs, currency swings and convertible debt complexity remain risks.
AEIS Shares Outperformed Sector, YTD
Advanced Energy shares have returned 14.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s rise of 14.1%.
However, the company’s shares have also underperformed its peers, which include Lam Research (LRCX - Free Report) , KLA Corporation (KLAC - Free Report) and MKS Instruments (MKSI - Free Report) . All three companies, Lam Research, KLA, and MKS Instruments, are expanding their footprint in the semiconductor equipment and technology sector. Shares of Lam Research, KLA and MKS Instruments have rallied 48.6%, 37.8% and 35.3%, respectively, in the year-to-date period.
AEIS Stock Performance
Image Source: Zacks Investment Research
Advanced Energy shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month Price/Earnings ratio, AEIS is trading at 20.25X, higher than the Computer & Technology sector’s 18.67X.
AEIS Valuation
Image Source: Zacks Investment Research
AEIS Rides On AI Power Demand and Semiconductor Strength
Advanced Energy’s strong AI Infrastructure demand has been a major growth driver. Strong hyperscaler spending, expanding customer engagements, and rising power requirements in AI data centers are strengthening the company’s long-term growth prospects. Advanced Energy expects its Data Center Computing revenues to grow at least 50% in 2026, supported by next-generation program ramps. Expanding relationships with second-wave data center customers are expected to accelerate growth in 2027 and beyond.
The transition toward 800-volt data center architectures presents another significant opportunity. Advanced Energy’s modular AC-DC and DC-DC power solutions offer high power density, approximately 98% efficiency, and improved reliability. These products are expected to generate initial production revenues in late 2027, followed by a meaningful ramp in 2028, potentially increasing power content per rack.
In semiconductor, rising investments in advanced logic, DRAM and NAND manufacturing, alongside increasing etch and deposition intensity, are creating opportunities for market share gains. Strong customer acceptance of the eVerest and eVoS plasma power platforms, coupled with system power design wins, is expected to accelerate new product revenues in 2027 and beyond.
The manufacturing expansion in Malaysia and Thailand, favorable product mix and operational efficiencies should support profitable growth. Advanced Energy expects its expanded manufacturing network to eventually provide approximately $5 billion in revenue-generating capacity, while targeting gross margins exceeding 43% over the long term.
What Should Investors Do With AEIS Stock?
Advanced Energy’s robust and diversified portfolio to meet the rising demand for AI-driven technologies, particularly in data center computing and semiconductor markets, is contributing to its growth prospects continuously, driving top-line growth. Expanding hyperscaler relationships, next-generation power solutions, and strong design-win momentum further strengthen its long-term prospects. These factors have justified its premium valuation.
View the Zacks #1 Rank List
Image: Bigstock
Should You Buy, Sell, or Hold AEIS Stock Before Q3 Earnings Release?
Key Takeaways
Advanced Energy (AEIS - Free Report) is scheduled to release third-quarter 2026 results on Nov. 2.
For the third quarter of 2026, Advanced Energy expects revenues of $640 million, plus or minus $20 million. Non-GAAP earnings are projected to be $3 per share, plus or minus 25 cents.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $646.39 million, indicating growth of 39.52% from the figure reported in the year-ago quarter.
The consensus mark for earnings is currently pegged at $3.06 per share, which has been unchanged over the past 30 days. The figure indicates a 75.86% increase from the year-ago quarter’s reported figure.
Advanced Energy Industries, Inc. Price and EPS Surprise
Advanced Energy Industries, Inc. price-eps-surprise | Advanced Energy Industries, Inc. Quote
Advanced Energy beat the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering an average surprise of 14.79%.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced AEIS’s Q3 2026 Performance
Advanced Energy’s third-quarter 2026 performance is expected to have benefited from robust demand for semiconductor manufacturing equipment, accelerating investments in artificial intelligence (AI) data center infrastructure, improving industrial and medical market conditions and increasing adoption of next-generation power solutions. Higher production volumes, favorable product mix and improved manufacturing efficiencies are also likely to have supported profitability in the to-be-reported quarter.
The Semiconductor business is likely to have benefited from strong demand for leading-edge memory and logic manufacturing, driven by increasing investments in advanced semiconductor technologies. Rising etch and deposition intensity, particularly in advanced DRAM, NAND and logic processes, is expected to have supported demand for Advanced Energy’s precision power solutions. The company’s eVerest and eVoS plasma power platforms are gaining traction due to their improved yield and throughput capabilities. Production ramps of existing products and new design wins in plasma and system power applications are expected to have supported growth in the quarter to be reported. Management anticipates semiconductor revenues to increase nearly 50% year over year in the second half of 2026.
The Data Center Computing business is expected to have benefited from accelerating hyperscaler investments in AI infrastructure and growing demand for high-efficiency, high-density power solutions. Resolution of downstream supply-chain constraints, increasing deployments of next-generation AI computing platforms and expanding engagements with existing hyperscale customers are likely to have driven sequential revenue growth.
The Industrial & Medical business is likely to have benefited from recovering market conditions, improving distributor demand and production ramps of previously secured design wins. Strength in test and measurement, factory automation, robotics, aerospace and defense, medical imaging and electrosurgery applications is expected to have supported sequential revenue growth. Increased factory output and improving order trends are additional positives.
However, customer concentration, inventory and capex execution, tariffs, currency swings and convertible debt complexity remain risks.
AEIS Shares Outperformed Sector, YTD
Advanced Energy shares have returned 14.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s rise of 14.1%.
However, the company’s shares have also underperformed its peers, which include Lam Research (LRCX - Free Report) , KLA Corporation (KLAC - Free Report) and MKS Instruments (MKSI - Free Report) . All three companies, Lam Research, KLA, and MKS Instruments, are expanding their footprint in the semiconductor equipment and technology sector. Shares of Lam Research, KLA and MKS Instruments have rallied 48.6%, 37.8% and 35.3%, respectively, in the year-to-date period.
AEIS Stock Performance
Image Source: Zacks Investment Research
Advanced Energy shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month Price/Earnings ratio, AEIS is trading at 20.25X, higher than the Computer & Technology sector’s 18.67X.
AEIS Valuation
Image Source: Zacks Investment Research
AEIS Rides On AI Power Demand and Semiconductor Strength
Advanced Energy’s strong AI Infrastructure demand has been a major growth driver. Strong hyperscaler spending, expanding customer engagements, and rising power requirements in AI data centers are strengthening the company’s long-term growth prospects. Advanced Energy expects its Data Center Computing revenues to grow at least 50% in 2026, supported by next-generation program ramps. Expanding relationships with second-wave data center customers are expected to accelerate growth in 2027 and beyond.
The transition toward 800-volt data center architectures presents another significant opportunity. Advanced Energy’s modular AC-DC and DC-DC power solutions offer high power density, approximately 98% efficiency, and improved reliability. These products are expected to generate initial production revenues in late 2027, followed by a meaningful ramp in 2028, potentially increasing power content per rack.
In semiconductor, rising investments in advanced logic, DRAM and NAND manufacturing, alongside increasing etch and deposition intensity, are creating opportunities for market share gains. Strong customer acceptance of the eVerest and eVoS plasma power platforms, coupled with system power design wins, is expected to accelerate new product revenues in 2027 and beyond.
The manufacturing expansion in Malaysia and Thailand, favorable product mix and operational efficiencies should support profitable growth. Advanced Energy expects its expanded manufacturing network to eventually provide approximately $5 billion in revenue-generating capacity, while targeting gross margins exceeding 43% over the long term.
What Should Investors Do With AEIS Stock?
Advanced Energy’s robust and diversified portfolio to meet the rising demand for AI-driven technologies, particularly in data center computing and semiconductor markets, is contributing to its growth prospects continuously, driving top-line growth. Expanding hyperscaler relationships, next-generation power solutions, and strong design-win momentum further strengthen its long-term prospects. These factors have justified its premium valuation.
AEIS stock currently carries a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.