Advanced Energy Q3 Revenue Jumps 50.3% to $696.4 Million on Record Semiconductor, Data Center Sales
Advanced Energy Industries delivered record third-quarter results that topped the high end of its own forecast, as revenue from semiconductor equipment and data center customers hit new highs. Revenue rose 50.3% to $696.4 million from $463.3 million a year earlier, according to its 8-K.
GAAP net income from continuing operations rose to $116 million, or $2.80 a diluted share, from $46 million, or $1.21 a share, a 131.4% increase in per-share earnings. Non-GAAP earnings climbed 109.8% to $3.65 a share from $1.74, also above the top of guidance.
Revenue also rose 21.3% from $574.1 million in the second quarter. GAAP gross margin was 41.5% and non-GAAP gross margin was 42.1%.
"We delivered record financial results again in the third quarter, with revenue in each of our markets growing sequentially and year-over-year," President and Chief Executive Officer Steve Kelley said.
Record semiconductor and data center sales
Semiconductor equipment revenue jumped 63.9% to $322.2 million from $196.6 million. Data center computing revenue rose 49.3% to $256.2 million from $171.6 million. Both were records, the company said.
Industrial and medical revenue grew 27.1% to $90.5 million, and telecom and networking revenue rose 15.1% to $27.5 million.
"Our strategic investments and solid execution are enabling us to meet strengthening customer demand and deliver higher gross margin," Kelley said, adding that the ramp of its Thailand factory is on track and new products should contribute more revenue in 2027.
Fourth-quarter guidance
For the fourth quarter, Advanced Energy expects revenue of $735 million, plus or minus $25 million. It forecasts GAAP earnings from continuing operations of $3.30 a share and non-GAAP earnings of $3.90 a share, each plus or minus $0.30.
Cash and buybacks
Cash flow from continuing operations was $66 million in the quarter, and the company paid $4 million in dividends. After the quarter ended, Advanced Energy repurchased $30 million of its common stock in October at an average price of $240.77 a share.
By the numbers
- Revenue: $696.4 million, up 50.3%
- GAAP EPS from continuing operations: $2.80 vs. $1.21
- Non-GAAP EPS: $3.65, up 109.8%
- Semiconductor equipment revenue: $322.2 million, up 63.9%
- Data center computing revenue: $256.2 million, up 49.3%
- Q4 revenue guidance: $735 million, plus or minus $25 million
Sources
- Advanced Energy Industries Form 8-K with third-quarter 2026 earnings release, filed Nov. 2, 2026 (accession 0000927003-26-000037)
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