Revenue was $511 million, up 26% year-over-year and above the midpoint of guidance
Data Center Computing revenue more than doubled year-over-year
GAAP gross margin was 39.3%; non-GAAP gross margin was 40.1%
GAAP EPS from continuing operations was $1.59; non-GAAP EPS was $2.09, above the midpoint of guidance

Advanced Energy Industries, Inc. (NASDAQ:AEIS), a global leader in highly engineered, precision power conversion, measurement, and control solutions, announced financial results for the first quarter ended March 31, 2026.

"In the first quarter, we achieved a key strategic milestone by delivering non-GAAP gross margin above 40%," said Steve Kelley, president and CEO of Advanced Energy. "Demand is strengthening across all of our markets. With our strategic initiatives gaining traction and strong customer adoption of our industry-leading technologies, we are confident in our ability to deliver long-term revenue and earnings growth."

Quarter Results

Revenue was $511 million in the first quarter of 2026, compared with $489 million in the fourth quarter of 2025 and $405 million in the first quarter of 2025.

GAAP net income from continuing operations was $67 million or $1.59 per diluted share in the quarter, compared with $53 million or $1.31 per diluted share in the prior quarter, and $25 million or $0.65 per diluted share a year ago.

Non-GAAP net income was $83 million or $2.09 per diluted share in the first quarter of 2026. This compares with $75 million or $1.94 per diluted share in the fourth quarter of 2025, and $47 million or $1.23 per diluted share in the first quarter of 2025.

During the first quarter of 2026, cash flow from continuing operations was an outflow of $6 million due to seasonal first quarter payments and a $48 million increase in inventory to support strong market demand. The company repurchased $0.3 million of common stock and paid $3.8 million in quarterly dividends.

Second Quarter 2026 Guidance

Based on the Company's current view, beliefs, and assumptions, guidance is within the following ranges:


	Q2 2026
Revenue	$540 million +/- $20 million
GAAP EPS from continuing operations	$1.54 +/- $0.23
Non-GAAP EPS	$2.18 +/- $0.25

Conference Call

Management will host a conference call today, May 4, 2026, at 4:30 p.m. Eastern Time to discuss the first quarter financial results. To participate in the live earnings conference call, please dial 877-407-0890 approximately ten minutes prior to the start of the meeting and an operator will connect you. International participants can dial +1-201-389-0918. A webcast will also be available on our investor web page at ir.advancedenergy.com in the Events & Presentations section. The archived webcast will be available approximately two hours following the end of the live event.

About Advanced Energy

Advanced Energy Industries, Inc. (NASDAQ:AEIS) is a global leader in the design and manufacture of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. Advanced Energy's power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial production, medical and life sciences, data center computing, networking, and telecommunications. With engineering know-how and responsive service and support for customers around the globe, the Company builds collaborative partnerships to meet technology advances, propels growth of its customers, and innovates the future of power. Advanced Energy has devoted four decades to perfecting power. It is headquartered in Denver, Colorado, USA. For more information, visit www.advancedenergy.com.

Advanced Energy | Precision. Power. Performance. Trust.

Non-GAAP Measures

This release includes measures, such as non-GAAP net income, non-GAAP operating income, and non-GAAP earnings per share ("EPS") that are not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management uses non-GAAP net income and non-GAAP EPS to evaluate business performance without the impacts of certain non-cash charges and other charges which are not part of our usual operations. We use these non-GAAP measures to assess performance against business objectives and make business decisions, including developing budgets and forecasting future periods. In addition, management's incentive plans include certain of these non-GAAP measures as criteria for achievements. These non-GAAP measures are not prepared in accordance with U.S. GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. However, we believe these non-GAAP measures provide additional information that enables readers to evaluate our business from the perspective of management. The presentation of this additional information should not be considered a substitute for results prepared in accordance with U.S. GAAP.

The non-GAAP results presented below exclude the impact of non-cash related charges, such as stock-based compensation, amortization of intangible assets, and long-term unrealized foreign exchange gains and losses. In addition, we exclude discontinued operations and other items such as acquisition-related costs, facility, infrastructure, and other transition costs, and restructuring expenses, as they are not indicative of future performance. The tax effect of our non-GAAP adjustments represents the anticipated annual tax rate applied to each non-GAAP adjustment after consideration of their respective book and tax treatments. Non-GAAP results also exclude non-recurring discrete tax expenses or benefits. Finally, non-GAAP diluted weighted-average common shares are adjusted to reflect the dilutive impact of our convertible note based on the higher note hedge strike price instead of the initial conversion price.

Forward-Looking Statements

This press release and statements we make on the above announced conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release or the conference call that are not historical information are forward-looking statements. For example, statements relating to our beliefs, expectations, and plans are forward-looking statements, as are statements that certain actions, conditions, or circumstances will continue. The inclusion of words such as "anticipate," "expect," "estimate," "can," "may," "might," "continue," "enables," "plan," "intend," "should," "could," "would," "likely," "potential," or "believe," and similar expressions and the negative versions thereof indicate forward-looking statements; however, not all forward-looking statements may contain such words or expressions. These forward-looking statements are based upon information available as of the date of this press release and management's current estimates, forecasts, and assumptions. Although we believe that our expectations reflected in or suggested by these forward-looking statements are reasonable, we may not achieve the results, performance, plans, or objectives expressed or implied by such forward-looking statements. Forward-looking statements involve risks and uncertainties, which are difficult to predict and many of which are beyond our control.

Risks and uncertainties to which our forward-looking statements are subject include, but are not limited to: volatility and business fluctuations in the industries in which we compete; our ability to achieve design wins with new and existing customers; our ability to accurately forecast and meet customer demand; risks related to global economic conditions, such as the impact of tariffs and export regulations, escalating global conflicts on macroeconomic conditions, economic uncertainty, market volatility, rising interest rates, inflation, lack of growth in our markets or recession; customer price sensitivity; the U.S. Dollar's change in value against its major peers; concentration of our customer base; risks associated with potential breach of our information security measures, either external breach or internal data theft; difficulties with the implementation of our enterprise resource planning and other enterprise-wide information technology system applications; our loss of or inability to attract and retain key personnel; risks associated with our manufacturing footprint optimization and movement of manufacturing locations for certain products; disruptions to our manufacturing operations or those of our customers or suppliers; our ability to successfully identify, close, integrate and realize anticipated benefits from our acquisitions; quality issues or unanticipated costs in fulfilling our warranty obligations (including our discontinued solar inverter product line), and adequacy of our warranty reserves; risks inherent in our international operations, including the effect of export controls, the impact of tariffs on our supply chain or products we sell, political and geographical risks, and fluctuations in currency exchange rates; our ability to enforce, protect, and maintain our proprietary technology and intellectual property rights; regulatory risk related to our supply chain; legal matters, claims, investigations, and proceedings; changes to tax laws and regulations or our tax rates; changes in federal, state, local and foreign regulations, including with respect to trade compliance, privacy and data protection, supply chain, and environmental regulation; the effect of our debt obligations and restrictive covenants on our ability to operate our business; risks related to our unfunded pension obligations; our estimates of the fair value of intangible assets; the potential impact of dilution related to our convertible debt, hedge, and warrant transactions; and the risks and uncertainties described in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2025.

These risks and uncertainties could cause actual results to differ materially and adversely from those expressed in any forward-looking statements, and readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are made and based on information available to us on the date of this press release. Aspirational goals and targets discussed on the conference call or in the presentation materials should not be interpreted in any respect as guidance. We assume no obligation to update the information in this press release or provide the reasons why our actual results may differ.

ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data)

	Three Months Ended
	March 31,						December 31,
	2026			2025			2025
Revenue, net	$	511.0		$	404.6		$	489.4
Cost of revenue		310.1			254.1			300.3
Gross profit		200.9			150.5			189.1
Gross margin %		39.3	%		37.2	%		38.6	%

Operating expenses:
Research and development		62.4			54.2			60.1
Selling, general, and administrative		62.3			59.0			63.4
Amortization of intangible assets		5.3			5.5			5.4
Restructuring, asset impairments, and other charges		2.6			1.2			3.6
Total operating expenses		132.6			119.9			132.5
Operating income		68.3			30.6			56.6

Interest income		5.8			6.9			6.5
Interest expense		(4.1	)		(4.2	)		(4.1	)
Other income (expense), net		—			(3.4	)		(1.8	)
Income from continuing operations, before income tax		70.0			29.9			57.2
Income tax provision		2.7			5.0			4.7
Income from continuing operations		67.3			24.9			52.5
Loss from discontinued operations, net of income tax		(0.5	)		(0.2	)		(0.2	)
Net income	$	66.8		$	24.7		$	52.3

Basic weighted-average common shares outstanding		37.7			37.6			37.6
Diluted weighted-average common shares outstanding		42.2			38.1			40.2

Earnings (loss) per share:

Continuing operations:
Basic earnings per share	$	1.79		$	0.66		$	1.40
Diluted earnings per share	$	1.59		$	0.65		$	1.31

Discontinued operations:
Basic loss per share	$	(0.01	)	$	(0.01	)	$	(0.01	)
Diluted loss per share	$	(0.01	)	$	(0.01	)	$	—

Net income:
Basic earnings per share	$	1.77		$	0.66		$	1.39
Diluted earnings per share	$	1.58		$	0.65		$	1.30

ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions)

	March 31,		December 31,
	2026		2025
ASSETS
Current assets:
Cash and cash equivalents	$	699.5	$	791.2
Accounts receivables, net		376.7		325.2
Inventories		458.7		411.2
Other current assets		54.4		46.3
Total current assets		1,589.3		1,573.9

Property and equipment, net		304.3		272.8
Operating lease right-of-use assets		102.0		98.1
Other assets		184.7		182.5
Goodwill and intangible assets, net		412.6		418.5
Total assets	$	2,592.9	$	2,545.8

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	272.1	$	224.1
Other accrued expenses		144.6		183.8
Current debt		568.2		567.5
Current portion of operating lease liabilities		15.7		15.8
Total current liabilities		1,000.6		991.2

Other long-term liabilities		189.7		184.0
Long-term liabilities		189.7		184.0

Total liabilities		1,190.3		1,175.2
Deferred compensation		18.2		7.8

Total stockholders' equity		1,384.4		1,362.8
Total liabilities and stockholders' equity	$	2,592.9	$	2,545.8

ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in millions)

	Three Months Ended March 31,
	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	66.8		$	24.7
Less: loss from discontinued operations, net of income tax		(0.5	)		(0.2	)
Income from continuing operations, net of income tax		67.3			24.9

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		15.8			16.1
Stock-based compensation		18.1			13.0
Amortization and write off of debt issuance costs and debt discount		0.8			0.7
Deferred income tax benefit		1.2			—
Other		—			0.4
Changes in operating assets and liabilities, net of assets acquired		(108.8	)		(25.9	)
Net cash from operating activities from continuing operations		(5.6	)		29.2
Net cash from operating activities from discontinued operations		(0.4	)		(0.3	)
Net cash from operating activities		(6.0	)		28.9

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of long-term investments		(1.4	)		(1.2	)
Purchases of property and equipment		(36.6	)		(13.9	)
Net cash from investing activities		(38.0	)		(15.1	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend payments		(3.8	)		(3.8	)
Purchase and retirement of common stock		(0.5	)		(0.5	)
Net payments related to stock-based awards		(40.6	)		(9.1	)
Net cash from financing activities		(44.9	)		(13.4	)

Effect of currency translation on cash, cash equivalents and restricted cash		(0.9	)		0.5

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(89.8	)		0.9
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period		791.2			722.1
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	$	701.4		$	723.0

ADVANCED ENERGY INDUSTRIES, INC. SUPPLEMENTAL INFORMATION (UNAUDITED) (in millions)

Net Revenue by Market	Three Months Ended
	March 31,				December 31,
	2026		2025		2025
Semiconductor Equipment	$	219.4	$	222.2	$	211.6
Data Center Computing		194.2		96.2		177.9
Industrial and Medical		72.0		64.3		78.2
Telecom and Networking		25.4		21.9		21.7
Total	$	511.0	$	404.6	$	489.4

ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in millions)


Reconciliation of non-GAAP measures
Non-GAAP gross profit, gross margin, operating expenses, operating income,	Three Months Ended
and operating margin	March 31,						December 31,
	2026			2025			2025
Gross profit from continuing operations, as reported	$	200.9		$	150.5		$	189.1
Adjustments to gross profit:
Stock-based compensation		1.5			1.1			1.3
Facility, infrastructure, and other transition costs		2.4			1.8			3.9
Non-GAAP gross profit		204.8			153.4			194.3

GAAP gross margin		39.3	%		37.2	%		38.6	%
Non-GAAP gross margin		40.1	%		37.9	%		39.7	%

Operating expenses from continuing operations, as reported		132.6			119.9			132.5
Adjustments:
Amortization of intangible assets		(5.3	)		(5.5	)		(5.4	)
Stock-based compensation		(16.6	)		(11.9	)		(13.2	)
Acquisition-related costs		(0.2	)		(1.0	)		(1.8	)
Facility, infrastructure, and other transition costs		(0.9	)		(1.7	)		(1.1	)
Restructuring, asset impairments, and other charges		(2.6	)		(1.2	)		(3.6	)
Non-GAAP operating expenses		107.0			98.6			107.4
Non-GAAP operating income	$	97.8		$	54.8		$	86.9

GAAP operating income	$	68.3		$	30.6		$	56.6
Adjustments to gross profit		3.9			2.9			5.2
Adjustments to operating expenses		25.6			21.3			25.1
Non-GAAP operating income	$	97.8		$	54.8		$	86.9

GAAP income from continuing operations	$	67.3		$	24.9		$	52.5
GAAP operating margin		13.4	%		7.6	%		11.6	%
Non-GAAP operating margin		19.1	%		13.5	%		17.8	%

ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in millions, except per share data)

Reconciliation of non-GAAP measure	Three Months Ended
Non-GAAP income, net of income tax	March 31,						December 31,
	2026			2025			2025
Income from continuing operations, net of income tax	$	67.3		$	24.9		$	52.5
Adjustments:
Amortization of intangible assets		5.3			5.5			5.4
Acquisition-related costs		0.2			1.0			1.8
Facility, infrastructure, and other transition costs		3.3			3.5			5.0
Restructuring, asset impairments, and other charges		2.6			1.2			3.6
Unrealized foreign currency loss (gain)		(1.9	)		1.6			0.5
Stock-based compensation		18.1			13.0			14.5
Tax effect of non-GAAP adjustments, including certain discrete tax benefits		(11.5	)		(3.8	)		(8.2	)
Non-GAAP income, net of income tax	$	83.4		$	46.9		$	75.1

Reconciliation of non-GAAP measure	Three Months Ended
Non-GAAP diluted weighted-average common shares	March 31,						December 31,
	2026			2025			2025
Diluted weighted-average common shares outstanding		42.2			38.1			40.2
Dilutive effect of convertible notes		(2.2	)		—			(1.4	)
Non-GAAP diluted weighted-average common shares outstanding		40.0			38.1			38.8

Reconciliation of non-GAAP measure	Three Months Ended
Non-GAAP earnings per share	March 31,						December 31,
	2026			2025			2025
Diluted earnings per share from continuing operations, as reported	$	1.59		$	0.65		$	1.31
Add back:
Per share impact of non-GAAP adjustments, net of tax		0.50			0.58			0.63
Non-GAAP earnings per share	$	2.09		$	1.23		$	1.94

ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in millions, except per share data)

	Three Months Ended
Reconciliation of non-GAAP measure	March 31,						December 31,
Non-GAAP provision for income taxes	2026			2025			2025
Provision for income taxes, as reported	$	2.7		$	5.0		$	4.7
Adjustment:
Non-GAAP items and other discrete tax items excluding stock-based compensation		7.7			1.1			5.2
Tax effect of stock-based compensation		3.8			2.7			3.0
Non-GAAP provision for income taxes	$	14.2		$	8.8		$	12.9


	Three Months Ended
Reconciliation of non-GAAP measure	March 31,						December 31,
Non-GAAP income before income taxes	2026			2025			2025
Income from continuing operations, before income tax	$	70.0		$	29.9		$	57.2
Adjustments:
Amortization of intangible assets		5.3			5.5			5.4
Stock-based compensation		18.1			13.0			14.5
Acquisition-related costs		0.2			1.0			1.8
Facility, infrastructure, and other transition costs		3.3			3.5			5.0
Restructuring, asset impairments, and other charges		2.6			1.2			3.6
Unrealized foreign currency loss (gain)		(1.9	)		1.6			0.5
Non-GAAP income before income taxes	$	97.6		$	55.7		$	88.0
Effective tax rate, as reported		3.9	%		16.7	%		8.2	%
Non-GAAP effective tax rate		14.5	%		15.8	%		14.7	%

Reconciliation of Q2 2026 Guidance
	Low End			High End

Revenue	$520 million			$560 million

Reconciliation of non-GAAP earnings per share
GAAP earnings per share	$	1.31		$	1.77
Stock-based compensation		0.36			0.36
Amortization of intangible assets		0.12			0.12
Restructuring expenses and other costs		0.15			0.15
Tax effects of excluded items		(0.12	)		(0.12	)
Convertible note dilution		0.11			0.15
Non-GAAP earnings per share	$	1.93		$	2.43

View source version on businesswire.com: https://www.businesswire.com/news/home/20260504748420/en/

For more information, contact:

Andrew Huang

Advanced Energy Industries, Inc.

970-407-6555

ir@aei.com

Advanced Energy Reports First Quarter 2026 Results