Advanced Energy Sees 2026 Growth Around 40% as Q3 Revenue Rises 50% Year Over Year

Advanced Energy Industries raised its 2026 revenue growth outlook to around 40% after third-quarter revenue rose 50% year over year, with record sales in semiconductor equipment and data center computing.

The company reported $696.4 million in revenue for the quarter ended Sept. 30, compared with $463.3 million a year earlier and $574.1 million in the second quarter. Revenue increased $122.3 million from the prior quarter. The result topped the $644.84 million pre-earnings consensus estimate highlighted in a previous revenue preview.

Semiconductor Equipment revenue reached $322 million, up 64% from a year earlier. Data Center Computing revenue was $256 million, an increase of 49%. Both segments posted record revenue during the quarter.

For the fourth quarter, Advanced Energy forecast revenue of $735 million, with a range of $710 million to $760 million. It projected GAAP earnings per share of $3.30, plus or minus 30 cents, and non-GAAP earnings per share of $3.90, plus or minus 30 cents.

The November outlook puts 2026 revenue growth at around 40%, up from the low-to-mid-30% range projected in September. The company also expects second-half semiconductor revenue to grow more than 60% year over year and full-year Data Center Computing revenue growth to be in the high-50% range.

Advanced Energy develops equipment for converting and controlling electrical power, along with measurement products, for semiconductor and data center markets. It is expanding output in the Philippines, Malaysia and Mexico, while its Thailand factory began generating revenue during the quarter.

The company reiterated a target of more than $5 billion in revenue-generating capacity exiting 2028. It had outlined a capacity objective for that period in September; the longer-term figure is a target, separate from its quarterly revenue forecast.

“We delivered record financial results again in the third quarter,” said Steve Kelley, president and CEO of Advanced Energy.