AEIS · Advanced Energy Industries, Inc.

Advanced Energy Industries delivered strong Q1 2026 results with revenue of $511 million, a 26% increase from $405 million in Q1 2025 and up sequentially from $489 million in Q4 2025, exceeding the midpoint of prior guidance. Key driver was Data Center Computing revenue more than doubling year-over-year, reflecting robust demand in high-growth areas. GAAP gross margin expanded to 39.3% from 37.2% YoY and 38.6% prior quarter, while non-GAAP gross margin hit 40.1%, marking a strategic milestone as highlighted by CEO Steve Kelley. Operating income rose to $68.3 million from $30.6 million YoY, supported by controlled operating expenses at $132.6 million despite higher R&D investment. GAAP net income from continuing operations reached $67.3 million or $1.59 diluted EPS, up significantly from $24.9 million or $0.65 YoY. Non-GAAP EPS of $2.09 also beat guidance midpoint, underscoring operational execution. Cash flow from operations showed a $6 million outflow, attributed to seasonal payments and a $48 million inventory increase to meet strengthening demand across markets. Balance sheet remains solid with cash at $699.5 million, though current debt at $568.2 million and inventory up to $458.7 million signal investment in growth. Capital returns continued with $0.3 million stock repurchase and $3.8 million dividend. Q2 guidance projects revenue at $540 million ±$20 million and non-GAAP EPS $2.18 ±$0.25, signaling confidence in sustained momentum amid strategic initiatives and customer adoption of technologies.