Advanced Energy Surpasses Expectations with AI-Driven Q2 Surge

Riding a wave of record-breaking data center growth, the company posts strong cash flow and sets optimistic Q3 targets.

August 06, 2025

Strong Second Quarter Performance

Advanced Energy’s second quarter shows what happens when demand aligns with execution. The company posted $441.5 million in revenue—topping guidance and continuing a steady upward trend from Q1 and the year-ago period. Growth was fueled by increased adoption of its precision power solutions, particularly in AI-driven data centers.

Data Center Computing revenue nearly doubled from last year and reached a new quarterly high. The company is seeing strong traction in AI infrastructure applications, and its power solutions are playing a central role. At the same time, the semiconductor segment delivered over $209 million in revenue, maintaining its leadership position in Advanced Energy’s portfolio. Industrial and medical markets also showed early signs of recovery, contributing to sequential growth.

Profitability and Margins

Profitability followed the same trajectory. GAAP earnings per diluted share came in at $0.67, while non-GAAP EPS reached $1.50 —towards the high end of what the company had guided. Non-GAAP gross margin landed at 38.1%, reflecting both product mix and internal cost efficiency efforts.

Cash Flow and Capital Allocation

Advanced Energy continues to run a balanced financial strategy. The company generated $46.5 million in cash from continuing operations this quarter. It returned capital to shareholders through:

• $3.9 million in dividends


• $22.8 million in share repurchases

At quarter-end, cash and equivalents totaled $713.5 million.

Looking Ahead

Looking to Q3, the company expects:

• Revenue:$420 million to $460 million


• Non-GAAP EPS:$1.20 to $1.70

Semiconductor product qualifications are progressing quickly, and margin expansion remains a focus. Combined with resilient data center demand, this gives the company room to grow faster than its served markets.

Market and Operational Risks

Risks remain—especially around macro volatility, foreign exchange, and broader supply chain dynamics. But Advanced Energy is positioning itself to respond. The company’s diversified product base and global footprint offer the flexibility needed to navigate evolving conditions while staying on course.