Advanced Energy Industries (AEIS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $489 million, up 18% year-over-year and at the high end of guidance, with non-GAAP EPS of $1.94, up 49% year-over-year, both exceeding expectations.

• Full-year 2025 revenue grew 21% year-over-year to $1.8 billion, with non-GAAP EPS up 73% to $6.41 and record operating cash flow of $235 million.

• Data Center Computing revenue surged 107% year-over-year to a record $587 million, with every quarter showing sequential growth, driven by AI and hyperscaler demand.

• Diversification strategy and execution drove growth in data center, semiconductor, and improving industrial/medical markets.

• Strength in Semiconductor, Industrial & Medical, and record Data Center performance drove results.

Financial highlights

• Q4 revenue up 6% sequentially and 18% year-over-year; gross margin at 39.7%, highest in five years.

• Q4 non-GAAP operating margin was 17.8%, up 426 bps year-over-year; full-year non-GAAP operating margin was 15.8%.

• Full-year Adjusted EBITDA rose 68% to $324 million; Non-GAAP EPS $6.41.

• Cash balance at year-end was $791 million, with net cash of $224 million and total debt of $568 million.

• Operating cash flow for Q4 was $80 million; full-year operating cash flow was a record $235 million.

Outlook and guidance

• Q1 2026 revenue guidance is $500 million ± $20 million, with non-GAAP EPS guidance of $1.94 ± $0.25 and gross margin in the 39.5%-40% range.

• 2026 revenue projected to grow in the high teens, with Data Center revenue growth outlook raised to over 30%.

• Gross margin target of 40% expected to be achieved in 2026, with a long-term goal of 43%.

• CapEx to remain elevated in 2026 to support capacity expansion, then revert to 4% of sales longer term.

• Management expects strengthening demand across markets and increased adoption of next-generation platforms in 2026.