Key Highlights

● Second-quarter Revenue reached $574.1 million, up about 30% from a year earlier.

● Data Center Computing revenue grew to $191.5 million from $141.6 million.

● Operating Cash Flow from continuing operations was a record $86 million.

● Third-quarter revenue guidance is $640 million, plus or minus $20 million.

Latest verified development: record cash generation and a stronger outlook

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%. 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.

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.

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, so results are more concentrated in two end-markets than the group name might suggest.

Margins, Earnings and cash

Gross Margin was 41.1% on a GAAP basis and 41.9% on a non-GAAP basis, which on the quarter's revenue implies GAAP Gross Profit of roughly $236 million. 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.

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.

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. Those ranges are the company's outlook, not results.

The revenue midpoint would be about 11% above the second-quarter figure, 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.

Data centre demand, equipment cycles and margins

The third-quarter revenue guide of $640 million sits about 11% above the second quarter, and Data Center Computing and Semiconductor Equipment already make up about 82% of sales. Can those two end-markets grow sequentially again at that pace?