Key Highlights

  • Second-quarter 2026 Revenue was USD 574.1 million, up 30 per cent from USD 441.5 million a year earlier.
  • Semiconductor Equipment revenue rose 33 per cent to USD 278.3 million, and Data Center Computing rose 35 per cent to USD 191.5 million.
  • Third-quarter guidance is revenue of USD 620 million to USD 660 million, with a midpoint of USD 640 million.

Semiconductor revenue drives growth

Advanced Energy Industries, Inc. (NASDAQ:AEIS), a maker of precision power conversion and control systems, reported second-quarter 2026 results on 3 August 2026. Revenue was USD 574.1 million, up 30 per cent from USD 441.5 million a year earlier and up from USD 511.0 million in the first quarter.

Semiconductor Equipment revenue, the highest to date according to the release, rose 33 per cent to USD 278.3 million. Data Center Computing revenue climbed 35 per cent to USD 191.5 million, although it eased from USD 194.2 million in the first quarter. Industrial and Medical grew 17 per cent to USD 80.0 million, and Telecom and Networking grew 11 per cent to USD 24.3 million. Growth was therefore broad-based across all four reported markets. Semiconductor Equipment and Data Center Computing together accounted for about 82 per cent of quarterly revenue, and sequential revenue growth was about 12 per cent.

Margins and earnings

Quarterly gross Margin was 41.1 per cent on a GAAP basis and 41.9 per cent non-GAAP. Diluted Earnings per share from continuing operations were USD 1.29 on a GAAP basis and USD 2.74 non-GAAP. GAAP Net Income from continuing operations was USD 54.5 million, while non-GAAP net income was USD 112.2 million. Total GAAP net income, including discontinued operations, was USD 54.1 million.

The gap between the two measures is partly explained by USD 31.8 million, or USD 0.75 per diluted share, of inducement costs tied to the partial conversion of the company's 2028 convertible notes. The reconciliation in the release sets out the remaining adjustments.

Chief executive Steve Kelley said Demand continues to improve across all of the company's markets, and that execution and strategic investments should enable profitable growth into 2027.

Balance sheet changes

The Balance Sheet looks materially different from the end of 2025. Cash and equivalents were USD 1,396.5 million at 30 June 2026, compared with USD 791.2 million at 31 December 2025. Total Debt rose to about USD 1,264.2 million, comprising USD 135.6 million current and USD 1,128.6 million long term, from USD 567.5 million, all of it current, at the end of last year.

The release records net proceeds of USD 1,129.3 million from 2031 notes. It also describes USD 86 million of Cash Flow from continuing operations for the quarter, the highest to date, though the six-month figure it shows is USD 80.0 million and the release does not reconcile the two, so that detail should be checked in the filing. The company paid USD 4.1 million in quarterly dividends.

Guidance and what to watch

For the third quarter of 2026, management guided to revenue of USD 620 million to USD 660 million, with a midpoint of USD 640 million. It guided to GAAP earnings per share from continuing operations of USD 2.13 to USD 2.63 and non-GAAP earnings per share of USD 2.75 to USD 3.25. These are forecasts, not reported results.

Points to watch also include whether Data Center Computing, which dipped sequentially, resumes growth, how gross margin holds as volumes rise, and how the larger debt load and cash balance are deployed.