Advanced Energy Reports Strong Q4 Results and Positive Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AEIS?
Source: Fool
Advanced Energy Industries Inc (AEIS) saw its stock price surge by 13.07% as it reached a 52-week high, reflecting strong investor confidence.
The company reported Q4 earnings of $1.94 per share, exceeding analyst expectations of $1.76, alongside quarterly sales of $489.4 million, surpassing estimates. Additionally, Advanced Energy provided positive guidance for the first quarter, projecting adjusted EPS between $1.69 and $2.19, which is above market estimates. Following these results, several analysts raised their price targets, indicating a bullish sentiment towards the stock.
This strong performance not only highlights Advanced Energy's competitive position in the market but also sets a positive outlook for future growth, particularly in the semiconductor and data center sectors.
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Analyst Views on AEIS
Wall Street analysts forecast AEIS stock price to fall
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 314.120
Low
225.00
Averages
283.75
High
310.00
Current: 314.120
Low
225.00
Averages
283.75
High
310.00
About AEIS
Advanced Energy Industries, Inc. provides engineered, critical, precision power conversion, measurement, and control solutions to its customers. The Company designs, manufactures, sells, and supports precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of controllable, usable power that is predictable, repeatable, and customizable to meet the necessary requirements for powering a range of complex equipment. The Company's precision power products and solutions are designed to enable new process technologies, improve productivity, and provide critical power capabilities for its customers. Its support services include warranty and non-warranty repair services, calibration, upgrades, and refurbishments of its products. The Company’s products are sold in the Semiconductor Equipment, Industrial and Medical, Data Center Computing, and Telecom and Networking markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Advanced Energy Surpasses Q4 Expectations, Shares Surge
- Earnings Beat: Advanced Energy's Q4 earnings report exceeded expectations, achieving a gross margin of 36.62% despite disruptions from the closure of its last factory in China, indicating strong growth in key markets.
- Data Center Growth: Data center solutions saw a remarkable 101% year-over-year growth, with a modest 4% quarter-over-quarter increase, driven by ongoing investments to meet massive AI application demand, and revenue from data centers is expected to grow over 30% in 2026.
- Semiconductor Recovery: Semiconductor solutions experienced an 8% quarter-over-quarter growth, despite a 7% year-over-year decline, with management noting that the momentum from Q4 has carried into the current quarter, and customer demand is expected to rise in the second half of the year.
- Strategic Positioning: With operating margins nearing 18% and the production shift from China complete, Advanced Energy is well-positioned as an under-the-radar stock to capitalize on the anticipated growth in data center and semiconductor spending in 2026.
See More
Diodes Reports Strong Quarterly Earnings, Shares Surge
- Earnings Beat: Diodes reported an adjusted EPS of 34 cents, surpassing market expectations of 32 cents, indicating strong profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $391.578 million, exceeding the anticipated $385.560 million, suggesting sustained demand for its products that could drive future revenue growth.
- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
- Market Performance: U.S. stocks were slightly higher, with the Dow Jones gaining around 0.1% on Wednesday, indicating cautious optimism about the economic outlook that could provide a favorable environment for other companies.
See More
Advanced Energy Surpasses Expectations with Q4 Results and Positive Guidance
- Earnings Beat: Advanced Energy reported Q4 earnings of $1.94 per share, exceeding the analyst consensus of $1.76, indicating strong profitability and boosting market confidence in its future performance.
- Strong Sales Performance: The company achieved quarterly sales of $489.4 million, surpassing the analyst estimate of $473.079 million, reflecting its competitive position and sustained demand for its products.
- Positive Guidance: Advanced Energy expects first-quarter adjusted EPS between $1.69 and $2.19, above the market estimate of $1.64, with sales projected between $480 million and $520 million, showcasing confidence in future performance.
- Analyst Target Increases: Following the earnings announcement, several analysts raised their price targets for Advanced Energy, with Needham increasing from $290 to $330 and Susquehanna from $300 to $375, reflecting a bullish sentiment in the market towards the stock.
See More
Advanced Energy to Participate in Multiple Investor Conferences
- Investor Conference Schedule: Advanced Energy will participate in the Citi Global Industrial Tech and Mobility Conference on February 18, 2026, in Miami Beach, showcasing its leadership in precision power conversion and control solutions.
- Virtual Conference Participation: The company will also attend the Susquehanna Technology Conference in New York on February 27, 2026, leveraging a virtual platform to expand its investor base and enhance market visibility.
- Tech and Media Conference: On March 4, 2026, Advanced Energy will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, further demonstrating its innovative capabilities in mission-critical applications.
- Live Streaming and Replay: The company will present at the Cantor Global Technology & Industrial Growth Conference on March 10, 2026, with the event streamed live and available for replay on its website, enhancing interaction and transparency with investors.
See More
Advanced Energy Reports Strong Q4 2025 Earnings with Record Revenue and Growth Outlook
- Significant Revenue Growth: Advanced Energy reported fourth-quarter revenue of $489 million for 2025, reflecting a 6% sequential increase and an 18% year-over-year rise, with semiconductor revenue at $212 million exceeding expectations, indicating strong customer demand recovery.
- Record Gross Margin: The gross margin for Q4 reached 39.7%, up 60 basis points sequentially, while the operating margin stood at 17.8%, marking the company's best performance in five years, which is expected to further enhance future profitability.
- Data Center Business Thrives: Data center computing revenue surged 107% year-over-year to $587 million, with projections for over 30% growth in 2026, reflecting robust demand in AI and high-performance computing sectors.
- Strategic Investment and Expansion: The company's operational expansions in the Philippines and Mexico, along with the fit-up of the Thailand factory, are expected to generate over $1 billion in annual revenue capacity, further solidifying its market position and supporting future growth.
See More
Advanced Energy Reports Q4 2025 Earnings with Strong Growth Metrics
- Earnings Beat: Advanced Energy's Q4 2025 non-GAAP EPS of $1.94 exceeded expectations by $0.16, indicating robust profitability growth that enhances investor confidence in the company's financial health.
- Significant Revenue Growth: The quarter's revenue reached $489 million, up 17.7% year-over-year, surpassing market expectations by $15.07 million, reflecting the company's increasing competitiveness and potential for future returns.
- Strong Data Center Performance: Data center computing revenue surged 107% to a record level, showcasing the company's strong performance in the rapidly growing data center market, which may lay the groundwork for future expansion.
- Record Cash Flow: Cash flow from continuing operations hit a record $235 million, demonstrating significant improvements in operational efficiency and profitability, providing ample funding for future investments and growth initiatives.
See More
Advanced Energy Surpasses Q4 Expectations, Shares Surge
- Earnings Beat: Advanced Energy's Q4 earnings report exceeded expectations, achieving a gross margin of 36.62% despite disruptions from the closure of its last factory in China, indicating strong growth in key markets.
- Data Center Growth: Data center solutions saw a remarkable 101% year-over-year growth, with a modest 4% quarter-over-quarter increase, driven by ongoing investments to meet massive AI application demand, and revenue from data centers is expected to grow over 30% in 2026.
- Semiconductor Recovery: Semiconductor solutions experienced an 8% quarter-over-quarter growth, despite a 7% year-over-year decline, with management noting that the momentum from Q4 has carried into the current quarter, and customer demand is expected to rise in the second half of the year.
- Strategic Positioning: With operating margins nearing 18% and the production shift from China complete, Advanced Energy is well-positioned as an under-the-radar stock to capitalize on the anticipated growth in data center and semiconductor spending in 2026.
See More
Diodes Reports Strong Quarterly Earnings, Shares Surge
- Earnings Beat: Diodes reported an adjusted EPS of 34 cents, surpassing market expectations of 32 cents, indicating strong profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $391.578 million, exceeding the anticipated $385.560 million, suggesting sustained demand for its products that could drive future revenue growth.
- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
- Market Performance: U.S. stocks were slightly higher, with the Dow Jones gaining around 0.1% on Wednesday, indicating cautious optimism about the economic outlook that could provide a favorable environment for other companies.
See More
Advanced Energy Surpasses Expectations with Q4 Results and Positive Guidance
- Earnings Beat: Advanced Energy reported Q4 earnings of $1.94 per share, exceeding the analyst consensus of $1.76, indicating strong profitability and boosting market confidence in its future performance.
- Strong Sales Performance: The company achieved quarterly sales of $489.4 million, surpassing the analyst estimate of $473.079 million, reflecting its competitive position and sustained demand for its products.
- Positive Guidance: Advanced Energy expects first-quarter adjusted EPS between $1.69 and $2.19, above the market estimate of $1.64, with sales projected between $480 million and $520 million, showcasing confidence in future performance.
- Analyst Target Increases: Following the earnings announcement, several analysts raised their price targets for Advanced Energy, with Needham increasing from $290 to $330 and Susquehanna from $300 to $375, reflecting a bullish sentiment in the market towards the stock.
See More
Advanced Energy to Participate in Multiple Investor Conferences
- Investor Conference Schedule: Advanced Energy will participate in the Citi Global Industrial Tech and Mobility Conference on February 18, 2026, in Miami Beach, showcasing its leadership in precision power conversion and control solutions.
- Virtual Conference Participation: The company will also attend the Susquehanna Technology Conference in New York on February 27, 2026, leveraging a virtual platform to expand its investor base and enhance market visibility.
- Tech and Media Conference: On March 4, 2026, Advanced Energy will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, further demonstrating its innovative capabilities in mission-critical applications.
- Live Streaming and Replay: The company will present at the Cantor Global Technology & Industrial Growth Conference on March 10, 2026, with the event streamed live and available for replay on its website, enhancing interaction and transparency with investors.
See More
Advanced Energy Reports Strong Q4 2025 Earnings with Record Revenue and Growth Outlook
- Significant Revenue Growth: Advanced Energy reported fourth-quarter revenue of $489 million for 2025, reflecting a 6% sequential increase and an 18% year-over-year rise, with semiconductor revenue at $212 million exceeding expectations, indicating strong customer demand recovery.
- Record Gross Margin: The gross margin for Q4 reached 39.7%, up 60 basis points sequentially, while the operating margin stood at 17.8%, marking the company's best performance in five years, which is expected to further enhance future profitability.
- Data Center Business Thrives: Data center computing revenue surged 107% year-over-year to $587 million, with projections for over 30% growth in 2026, reflecting robust demand in AI and high-performance computing sectors.
- Strategic Investment and Expansion: The company's operational expansions in the Philippines and Mexico, along with the fit-up of the Thailand factory, are expected to generate over $1 billion in annual revenue capacity, further solidifying its market position and supporting future growth.
See More
Advanced Energy Reports Q4 2025 Earnings with Strong Growth Metrics
- Earnings Beat: Advanced Energy's Q4 2025 non-GAAP EPS of $1.94 exceeded expectations by $0.16, indicating robust profitability growth that enhances investor confidence in the company's financial health.
- Significant Revenue Growth: The quarter's revenue reached $489 million, up 17.7% year-over-year, surpassing market expectations by $15.07 million, reflecting the company's increasing competitiveness and potential for future returns.
- Strong Data Center Performance: Data center computing revenue surged 107% to a record level, showcasing the company's strong performance in the rapidly growing data center market, which may lay the groundwork for future expansion.
- Record Cash Flow: Cash flow from continuing operations hit a record $235 million, demonstrating significant improvements in operational efficiency and profitability, providing ample funding for future investments and growth initiatives.
See More
