Advanced Energy Industries Stock Earnings Reports

Advanced Energy reported a strong Q1 2026: revenue of $511 million, up 26% year-over-year, driven by record data center revenue and better-than-expected results across several end markets. Gross margin exceeded 40% (40.1%), a milestone management attributes to product mix, manufacturing efficiency and premium new products; operating income was a record $98 million and non-GAAP EPS was $2.09. Management raised 2026 revenue growth guidance to low- to mid-20% overall, with data center revenue growth now expected in the mid-30% range and semiconductor strength anticipated to accelerate in H2 (with 2H semiconductor revenue expected to be up >30% year-over-year). The company is executing capacity expansions across Malaysia, the Philippines and Mexico and is accelerating buildout of a new Thailand facility (management expects >$2.5 billion of revenue-generating capacity after current expansions and >$3.5 billion once Thailand is fully built out). Q2 guidance: revenue ~ $540 million ± $20 million, modest sequential gross margin improvement, OpEx $112–$114 million, and non-GAAP EPS ~$2.18 ± $0.25. FY 2026 CapEx expected $170–$180 million; management still targets free cash flow at or above 2025 levels despite higher investment. Industrial & Medical bookings improved (bookings +14% sequentially) but production was deprioritized in Q1 to meet data center demand; management expects I&M production to catch up in Q2–Q3. Key risks noted: downstream customer supply constraints that create demand volatility, inventory build to mitigate supply risk (inventory days up to 135), and ongoing tariff / input cost pressures. Management continues to pursue strategic M&A, particularly to broaden Industrial & Medical exposure.