Highlights

  • Advanced Energy Industries, Inc. (NASDAQ:AEIS) which makes precision power-conversion and control products, reported second-quarter 2026 results on 3 August 2026.
  • The company said revenue exceeded the top of its guidance range.
  • Semiconductor Equipment revenue was $278.3 million, up from $209.5 million.
  • The four segments sum to the reported total.

Advanced Energy Industries, Inc. (NASDAQ:AEIS) which makes precision power-conversion and control products, reported second-quarter 2026 results on 3 August 2026. Revenue was $574.1 million, up about 30% from $441.5 million a year earlier and up from $511.0 million in the first quarter, a sequential rise of roughly 12% by calculation. The company said revenue exceeded the top of its guidance range.

Chief executive Steve Kelley said demand continues to strengthen across all of the company's markets. The reviewed material did not show no later company release during research.

Segment detail

Semiconductor Equipment revenue was $278.3 million, up from $209.5 million. Data Center Computing was $191.5 million, up from $141.6 million. Industrial and Medical was $80.0 million, up from $68.6 million, and Telecom and Networking was $24.3 million, up from $21.8 million. The four segments sum to the reported total.

By my calculation, Data Center Computing grew about 35% and Semiconductor Equipment about 33%, while Industrial and Medical grew roughly 17% and Telecom and Networking about 11%. Together the two fastest-growing segments made up about 82% of total quarterly revenue reported, so results are more concentrated in two end-markets than the group name might suggest.

Margins, earnings and cash

Applying the margins to revenue gives gross profit of roughly $236 million on a GAAP basis, my own estimate from a rounded percentage. Industrial and Medical plus Telecom and Networking together contributed about $104 million, or 18% of revenue, so the larger cyclical and capital-spending exposures sit in the two faster-growing segments.

Gross margin was 41.1% on a GAAP basis and 41.9% on a non-GAAP basis. GAAP diluted earnings per share from continuing operations were $1.29, which included $0.75 per share of debt inducement costs. Non-GAAP diluted earnings per share were $2.74, above the top of the company's guidance.

Operating cash flow from continuing operations was a record $86 million for the quarter. Cash and equivalents were $1,396.5 million at 30 June 2026. The release should be consulted for the company's debt position and for the nature of the debt inducement costs, which I did not extract in detail.

Third-quarter guidance

For the third quarter the company guided to revenue of $640 million, plus or minus $20 million, GAAP earnings per share of $2.38 plus or minus $0.25, and non-GAAP earnings per share of $3.00 plus or minus $0.25. These are management forecasts, not reported results.

The revenue midpoint would be about 11% above the second-quarter figure by calculation, so the guidance assumes continued sequential growth rather than a plateau. The non-GAAP earnings-per-share midpoint of $3.00 compares with the reported $2.74, an increase of about 9%. The GAAP midpoint of $2.38 is well above the reported $1.29, which was reduced by the $0.75 of debt inducement costs; readers should check the release for the assumptions behind the guidance.

Share price, benchmark and what to watch

StockAnalysis.com recorded AEIS closing at $260.77 on 14 October 2026, the latest completed session I could retrieve, down about 5.4% from $275.65 on 13 October and below $280.77 on 12 October. Google Finance showed a $279.68 close on 25 September. The reviewed material did not establish a company announcement explaining the 14 October decline, and this article does not attribute it to any cause. Several other semiconductor-related shares also fell during the same sessions.

I could not corroborate Advanced Energy as a constituent of a named index from an authoritative source, so the S&P MidCap 400 is used only as a labelled benchmark. Nothing here implies index membership.

Items to monitor include whether data centre and semiconductor-equipment demand sustain sequential growth, whether the third-quarter results land within the guided ranges, and how margins develop. I did not find a confirmed date for the third-quarter announcement.