Advanced Energy Industries, Inc. Q3 2026 Earnings Recap

Advanced Energy shares rose 9.6% after earnings. The company reported Q3 revenue and earnings above the high end of its guidance and raised its 2026 growth outlook to around 40%.

Key Takeaways

• Revenue grew by more than $120 million sequentially; management said revenue in each target market increased both sequentially and year over year.
• Semiconductor revenue was up more than 60% year over year, while Data Center revenue grew almost 50%.
• Industrial & Medical posted a fourth consecutive quarter of year-over-year growth, and the company expects the trend to continue into 2027.
• Management expects strong investment in AI data centers and leading-edge wafer capacity to continue through 2027 into 2028; it sees capacity for sizable upside, assuming adequate supply of key components.
• Advanced Energy is ramping its Thailand factory and expanding output elsewhere, targeting more than $5 billion in revenue-generating capacity by the end of 2028. Management cited a line of sight to gross margin above 43%.