Advanced Energy Industries 2025 Q3 Earnings Record Net Income Surges 410%

Advanced Energy Industries (AEIS) delivered a standout quarter, surpassing revenue and earnings estimates with a 23.8% year-over-year revenue increase to $463.3 million and non-GAAP EPS of $1.74, outpacing the $1.47 forecast. The company raised its Q4 2025 revenue guidance to $470 million ± $20 million, a $24.4 million increase from the $445.6 million previously expected by analysts.

Revenue

The company’s revenue surge was driven by robust demand across key segments. Semiconductor Equipment led with $196.6 million, while Data Center Computing revenue more than doubled to $171.6 million year-over-year. Industrial and Medical contributed $71.2 million, and Telecom and Networking added $23.9 million. These results reflect a strategic shift toward high-growth markets, particularly AI-driven data center solutions.

Earnings/Net Income

Advanced Energy returned to profitability with a net income of $46.2 million in Q3 2025, a 410.1% increase from the $14.9 million loss in the same period last year. EPS rose to $1.23 from a $0.40 loss, marking a 407.5% improvement. The company’s turnaround underscores its ability to leverage operational efficiencies and strong demand in core markets.

Price Action

Post-earnings, AEIS shares declined 5.04% in after-hours trading despite the strong results, closing at $199.81. The stock had surged 12.19% month-to-date but dropped 4.68% in the week prior. Analysts attribute the dip to short-term profit-taking, though long-term optimism persists due to the company’s guidance and growth trajectory.

CEO Commentary

CEO Steve Kelley highlighted record data center revenue and 113% YoY growth in the segment, along with a 123% increase in operating cash flow. He emphasized gross margin improvements to 37.6% and confidence in meeting long-term financial goals set at the 2024 Analyst Day.

Guidance

Advanced Energy provided Q4 2025 guidance: $470 million ± $20 million in revenue, GAAP EPS of $1.12 ± $0.25, and non-GAAP EPS of $1.75 ± $0.25. The outlook reflects stable demand and operational execution, with potential variability in market conditions.

Additional News

Within three weeks of the earnings release, Advanced Energy saw multiple analyst upgrades. KeyBanc raised its price target to $240 from $195, citing a doubling of data center revenue and expected 25-30% growth in 2026. Stifel also raised its target to $230 from $210, maintaining a “Buy” rating. Additionally, the company announced a $1 billion Thailand facility to support future production ramps, signaling long-term expansion plans.

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