Abstract
Advanced Energy Industries will report its quarterly results on February 10, 2026 Post Market; this preview summarizes consensus expectations, management guidance markers, business-mix dynamics, and prevailing analyst sentiment for the upcoming print.
Market Forecast
Consensus for Advanced Energy Industries’ current quarter points to revenue of $473.08 million, adjusted EPS of $1.76, and EBIT of $76.92 million, implying estimated year-over-year growth of 20.10% for revenue and 60.82% for EPS. Forecast detail suggests a solid gross profit trajectory with margin mix improvements; specific gross profit margin and net profit margin forecasts are not available, though last quarter’s margins provide a baseline for comparison.
The company’s revenue base is led by Semiconductor Equipment and Data Center Compute, with improving orders cited as the primary highlight; the most promising segment is Data Center Compute, supported by AI-centric power and cooling attachment, with revenue of $171.60 million and a clear path to reacceleration on a year-over-year basis from a low base.
Last Quarter Review
In the previous quarter, Advanced Energy Industries delivered revenue of $463.30 million, a gross profit margin of 38.83%, GAAP net profit attributable to shareholders of $46.20 million, a net profit margin of 9.97%, and adjusted EPS of $1.74, with revenue growing 23.81% year over year and adjusted EPS up 77.55% year over year.
A key highlight was the strong sequential recovery in profitability, with quarter-on-quarter net profit growth of 83.33%, reflecting operating leverage as volumes normalized. The main business mix featured Semiconductor Equipment at $196.60 million and Data Center Compute at $171.60 million, while Industrial and Medical contributed $71.20 million and Telecom and Networking added $23.90 million; growth was concentrated in semiconductor and AI-related power systems, which saw the most resilient demand on a year-over-year basis.
Current Quarter Outlook (with major analytical insights)
Main Business: Semiconductor Equipment Power Solutions
Semiconductor Equipment remains the core revenue anchor and a key determinant of quarterly variability. The latest order patterns indicate sustained recovery in wafer fab equipment spending tied to AI accelerators, leading-edge logic, and high-bandwidth memory capacity, which typically translate into stronger demand for process power subsystems. With last quarter’s gross margin at 38.83%, incremental volume in higher-spec tools can lift mix, especially where Advanced Energy Industries’ content per tool is highest in etch, deposition, and inspection. Pricing discipline and supply-chain normalization should continue to support margins, though the pace of recovery depends on fab utilization and customer inventory destocking progress.
On the risk side, push-outs from memory customers or delays in qualification windows could disturb near-term shipments. The net profit margin baseline of 9.97% suggests operating leverage remains available if revenue tracks to the $473.08 million forecast. A print close to forecast would likely require stable conversion in backlog and healthy service/upgrade pull-through.
Largest Growth Potential: Data Center Compute and AI Power Platforms
Data Center Compute has emerged as the largest growth opportunity, supported by AI build-outs that require reliable, efficient, and thermally resilient power systems. Last quarter, this segment generated $171.60 million, and consensus implies double-digit year-over-year expansion this quarter from a modest base as hyperscaler deployments broaden beyond training clusters to inference and enterprise AI rollouts. Higher attach of advanced power shelves and high-density conversion units can improve overall gross profit trajectory if component costs remain favorable.
Key catalysts include qualification wins in next-generation server platforms and incremental content gains per rack, which can drive revenue beyond unit growth. The near-term watch item is supply alignment for critical components and any lead-time elongation; if managed within plan, the segment can outgrow the company average and support the forecasted EPS uplift to $1.76.
Stock Price Drivers This Quarter
Investors are most focused on gross margin direction versus the 38.83% baseline and whether operating expense discipline preserves the implied EBIT of $76.92 million. Any commentary on backlog quality, conversion rates, and book-to-bill for Semiconductor Equipment will be pivotal for near-term sentiment. Management color on AI-related orders in Data Center Compute, including visibility beyond the current quarter and indications of sustained customer spending, may reshape revenue run-rate expectations for the first half of 2026.
Another swing factor is the cadence of Industrial and Medical demand. While smaller at $71.20 million last quarter, stabilization in that portfolio can reduce earnings volatility and underpin margin resilience. Finally, clarity on inventory positions and component cost trends will help investors gauge whether the EPS forecast of $1.76 rests on recurring efficiency or temporary tailwinds.
Analyst Opinions
The balance of institutional commentary skews bullish, with the majority highlighting upside in AI-exposed Data Center Compute and improving semiconductor order momentum; fewer are cautious, and the constructive camp emphasizes potential for above-consensus margin performance if mix shifts toward higher-value subsystems. Notably, bullish views point to favorable year-over-year comparisons, healthy sequential demand, and disciplined spending that supports the forecasted EPS of $1.76 on $473.08 million revenue.
Supportive analysts underline the likelihood that gross margin trends improve from the 38.83% baseline as AI-rich shipments carry better mix, while the bear case centers on macro uncertainty and memory timing risks; however, the dominant view is that near-term catalysts outweigh these risks. The bulls also reference recent positive estimate revisions following the prior quarter’s revenue of $463.30 million and adjusted EPS of $1.74, suggesting momentum into the February 10, 2026 Post Market release.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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