Advanced Energy Surpasses Targets with Strong 2025 Results

Surging demand in semiconductor and data center markets helped push annual revenue up 21% and profits higher.

February 11, 2026

Strong Finish to 2025

Advanced Energy ended 2025 with strong momentum. Revenue climbed 21% year-over-year to $1.80 billion, driven by higher demand across key markets and improved operating performance. Data center computing led the way, with revenue more than doubling compared to the prior year. Semiconductor equipment remained the company’s largest business line, while industrial, medical, telecom, and networking markets contributed stable results.

Fourth quarter revenue came in at $489 million, at the high end of expectations. Earnings followed suit. GAAP earnings per share from continuing operations landed at $1.31, while non-GAAP EPS reached $1.94. Both measures reflect solid execution during a period of increasing customer activity, particularly in the semiconductor space.

The company closed the year with record cash flow from continuing operations— $235 million. It used that capital to buy back $30 million in stock and pay $15.6 million in dividends. Cash and equivalents ended the year at $791 million, above the $568 million in convertible notes outstanding.

Profit Growth and Market Drivers

On a non-GAAP basis, earnings per share for the full year grew 73% to $6.41. GAAP EPS rose to $3.87. Both figures reflect gains in gross and operating margins as well as the company’s continued shift toward a more diversified business mix.

Data center computing revenue stood out. It grew 107% year-over-year to reach $587 million, marking a record for the segment. Advanced Energy attributed the surge to customer adoption of next-generation platforms and stronger demand for high-performance power solutions.

Outlook for Q1 2026

Looking ahead, the company expects demand to stay strong. First quarter 2026 guidance calls for:

• Revenue: around $500 million, plus or minus $20 million


• Non-GAAP EPS: expected between $1.69 and $2.19

The company pointed to ongoing platform adoption and broader market recovery as key drivers.

Focus Areas Going Forward

Advanced Energy continues to focus on customer alignment, product innovation, and operational discipline. It enters 2026 with a clear strategy: support growth across its target industries, strengthen financial performance, and deliver reliable power solutions for high-demand applications.