Advanced Energy Beats Q3 Estimates as Revenue Jumps 50%, Guides Q4 Above Consensus

AEIS reported third-quarter 2026 revenue of $696.4 million, up 50.3% year over year, a 7.74% surprise against the Zacks consensus of $646.39 million. Non-GAAP EPS was $3.65, compared with a $3.06 Zacks consensus estimate, a 19.28% surprise; Investing.com, using a $3.04 estimate, put the beat at $0.61. The company's release said both revenue and non-GAAP EPS came in above the high end of its guidance, and GAAP EPS from continuing operations was $2.80.

Growth came from every segment. Semiconductor Equipment revenue rose 63.9% to $322.2 million and Data Center Computing rose 49.3% to $256.2 million, which the company said were record levels for both. Industrial and Medical grew 27.1% to $90.5 million, while Telecom and Networking rose 15.1% to $27.5 million, short of the $29.28 million analyst estimate. The release reported a non-GAAP gross margin of 42.1% and said the company repurchased $30 million of stock in October at an average price of $240.77.

Guidance pointed higher. Advanced Energy forecast fourth-quarter revenue of $735 million and non-GAAP EPS of $3.90, against analyst consensus of $693.60 million and $3.42. Shares had closed at $217.19 before the report and were down 32.95% over the prior three months; Zacks noted a 27% decline over the past month. After the release, the stock was up 10.35% from the close in after-hours trading.

What to watch: whether the regular session holds the after-hours gain, Data Center Computing demand into the fourth quarter, and the Thailand factory ramp the company said is on track, along with new products it expects to contribute revenue in 2027.